The COVID-19 pandemic continues to reshape shipping all across the world. UPS recently announced a rise in rates due to peak shipping activity due to the pandemic. FedEx has come behind and has mimicked the UPS with 2020 FedEx Peak Surcharge. As FedEx copes with these changes, they are continuing to modify their pricing accordingly and increasing 2020 FedEx peak surcharges. On June 3, 2020, FedEx released some updates to the currents 2020 shipping rates, specifically residential deliveries and oversize, hard-to-handle packages, which FedEx has experienced increased operating costs across their network. These modifications are particularly important and will undoubtedly impact many shippers.
|Surcharge Name||Applicable Service||Surcharge Amount||Effective Date|
|Temporary Surcharge||FedEx SmartPost||$0.40 per package||June 8, 2020 & indefinitely|
|Peak — Oversize Charge||Domestic FedEx Express/Ground||$30.00 per package||June 8, 2020 & indefinitely|
|Peak — Residential Delivery Charge||Domestic FedEx Express/Ground||$0.30 per package||June 8, 2020 & indefinitely|
Peak — Residential Delivery Charge
The 2020 FedEx Peak residential delivery surcharge will be billed separately and only apply to customers at the enterprise level. These are customers who:
- within a given week, ship 40,000 FedEx Express residential and FedEx Ground residential packages combined (not counting FedEx SmartPost or One Rate); and
- whose volume in that same week exceeds 120% of their average weekly volume in February 2020.
Peak Oversize Charge
If you are unsure of what an oversize charge is, here is a refresher. A FedEx oversize is any package that:
- exceeds 96 inches in length, or
- 130 inches in length and girth
The length and girth of a package is length + (2 times the height) +(2 times the width). Remember always to round up.
Previous 2020 Peak Surcharges: Effective April 6, 2020
|Origin Regions/ Countries||Rest of APAC||All Other Regions/Countries|
|Hong Kong SAR, China||$0.45||$0.45|
|Rest of APAC||$0.45||$0.10|
|All Other Regions/Countries||$0.10||$0.10|
How can you lessen peak surcharges?
The 2020 FedEx Peak Surcharge will have an impact on all Surepost shippers and some ground shippers. If you have questions about these impacts, feel free to reach out to us at Refund Retriever. We are always happy to help.