The FedEx oversize charge for many shippers is a shipping expense that cannot be avoided. Many shippers do not know what these are until the charge is on a FedEx invoice. Let’s look at the definition of the FedEx oversize charge, the price of FedEx oversize charge and FedEx peak season oversize charges. In addition to understanding these charges, we will also help reduce the cost impact and show how Refund Retriever’s reports can identify your issues.
What is a FedEx Oversize Charge Package?
A FedEx oversize charge applies to any package that exceeds 96 inches in length or 130 inches in length and girth. The rating will be based on the greater of the package’s actual rounded weight or dimensional weight, subject to a 90-lb. minimum billable weight.
Package shape and dimensions may change during transit, which can affect the package’s dimensional weight and surcharge eligibility. If the dimensions change during transit, FedEx may make adjustments to the shipment charges at any time. Subsequently, your package might start its journey without being oversized, but end the journey with an additional $90 charge.
Price of the FedEx Oversize Charge
|Oversize Charge||U.S. Express and Ground Services, International Ground Service||$80 per package||$90 per package||$100 per package|
|Oversize Charge||FedEx Home Delivery||$80 per package||$90 per package||$120 per package|
|Peak – Oversize Charge||U.S. Express and Ground Package Services||$27.50 per package||$27.50 per package||$37.50 per package|
FedEx Peak Season Oversize Charge
During specified times of the year, the FedEx peak season oversize charge will apply to packages meeting the criteria and characteristics of the Oversize Charge. In 2019, the shippers will see an additional $27.50 per oversize package. This additional peak season surcharge took effect during the holiday shipping. In 2020, the additional peak season surcharge will be $37.50 per oversize package.
How to Reduce These Charges
How can a shipper reduce oversize charge fees without shipping a smaller item or using a smaller box? Many times the size of your item is the size of your item, it cannot be folded or cut in half. As a result, the ability to reduce your FedEx oversize charges lies in negotiating the cost or definition with FedEx. In this case, there are two effective ways to accomplish this.
As a rule, the easiest way is to have FedEx give you a discount on the price you are being charged. We have FedEx shippers with discounts that range from 15 to 75 percent of the oversize charge fee. When you are in negotiations with your FedEx representative, your initial request should include this request.
In addition to a discount on the price of the charge, a shipper can also request a variance on the definition of the charge. For example, if you have a product that is 97 inches in length you could request a 2-inch variance in the 96-inch rule. So then any package under 98 inches in length would not have the FedEx oversize charge applied and save your company $90 ($100 or $120 in 2020).
Lastly, do not forget about the FedEx peak-season oversize charge during your contract negotiation. FedEx does not automatically apply the discount to the additional $27.50 ($37.50 in 2020). Be sure to specify the oversize discount will apply to the FedEx peak-season oversize charge. For example, the client below has a 50% discount on the oversize charge but no discount on the peak season surcharge.
Refund Retriever Can Reduce Your Oversize Charges
Does your company have an issue with FedEx oversize packages? Many shippers really have no idea of what they are paying for when they pay a FedEx invoice. In this
Our FedEx oversize and large package surcharge report will identify all these packages in full detail. As a result, your shipping managers can identify any problem shipments to change a box size or start talks with FedEx. In addition, if you need help with the FedEx agreement negotiations, Refund Retriever can help. Check out our contract negotiation information page.
In conclusion, Refund Retriever’s reports and analytics can help parcel shippers with these FedEx oversize charges.