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FEDEX REFUNDSUPS REFUNDS

FedEx Additional Handling Surcharge: What to know

By Last updated on: February 20, 2020

Many FedEx shippers see an additional handling charge on their FedEx invoice and wonder what it is and why it is so expensive.  Additional handling charges are an added fee basically because the package did not conform to the characteristics that FedEx wants.  They have to treat the package differently than the rest.  So how much are these fees and how can we reduce them?  

How much is the FedEx additional handling fee?

Domestic Express & Ground Costs
Weight – actual weight greater than 50 pounds$ 24.00
Length – longest side exceeds 48 inches$ 15.00
Width – second longest side over 30 inches$ 15.00
Non-standard packaging$ 13.00

2020 FedEx changes to additional handling

Before this year, a weight-based additional handling charge was applied to packages with an actual weight of 70 pounds or greater. Beginning in 2020, all domestic packages with an actual weight greater than 50 pounds will have a charge of $24.00 added.

How does FedEx define an additional handling charge?

  • (Dimension)
    1. measures greater than 48 inches along the longest side;
    2. measures greater than 30 inches along the second-longest side;
  • (Weight)
    • actual weight greater than 50 lbs.
      • (U.S. Express & Ground Services
    • actual weight greater than 70 lbs.
      • (International Express & Ground Services)
  • (Packing)
    • Non-standard packaging, including any package that:
      1. is not fully encased in an outer shipping container;
      2. encased in an outer shipping container not made of cardboard;
      3. covered in shrink or stretch wrap;
      4. is encased in a soft-sided pack (poly bags or bubble mailer) longer than 18 inches or 13 inches along its second-longest side or 5 inches in height;
      5. cylindrical;
      6. bound with metal, plastic or cloth banding, or has wheels, casters, handles, or straps; or
      7. could become entangled or cause damage to other packages or FedEx equipment
FedEx Additional Handling Surcharge

Peak — Additional Handling Surcharge

Effective November 18, 2019 to January 5, 2020, FedEx will apply an additional charge to the standard additional handling charges. During this time, each charge will see an additional $4.10 per package added.

Peak — FedEx Additional Handling Surcharge

How can a company avoid FedEx additional handling charges?

FedEx’s additional handling and other fees account for a considerable portion of a small parcel shipper’s overall shipping spend. Therefore, effective shipping spend management is vital for any business to achieve a competitive edge in the densely populated e-commerce market. Our analytics and reporting will provide shipping and transportation insight for all levels of your logistics and technology.

Price Reduction

They cannot avoid shipping packages within the FedEx definition. Many companies have this cost reduced during a contract agreement negotiation with FedEx. The carrier might agree to a 25-75% reduction of this fee.  

A shipper can also request to have one of the four different situations discounted. Rather than receive a 50% discount on all the additional handling fees, opt for a reduction on the two most used fees and full price on the others. 

Definition Variance

But what if instead of a cost reduction, a company could negotiate a variance in the definition of FedEx additional handling? This causes fewer packages from falling within the limits. Therefore, alter the FedEx agreement to increase the actual weight limit to 53 or 55 pounds if your company has a product over the limit. Another alternative is to negotiate a change to “any package with its longest side exceeding 50 inches or its second-longest side exceeding 33 inches.”

Contact the experts at Refund Retriever to analyze your current accessorial fee spend. In summary, we can help lower future shipping costs with a full contract analysis. 

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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