FedEx and UPS have increased surcharges for packages shipped during these busy shipping seasons. FedEx will increase three surcharges and UPS will implement new peak season surcharges. UPS’s fees apply mainly to residential deliveries since they are inefficient due to homes being more spread out.
FedEx Rate Increase
The following surcharge increases will take effect during the holiday shipping period of November 20, 2017 to December 24, 2017. These fees are applicable FedEx Express and Ground services.
In 2016, FedEx implemented a month long money-back guarantee waiver for all ground and home delivery services. 2017 should be no different, guaranteed service refunds (GSR) for some services will be taken off the table.
UPS Rate Increase
United Parcel Service is instituting per-package surcharges for the 2017 holiday season to help cover the cost of hiring seasonal workers and renting additional equipment. UPS typically sees its volume double from normal levels around the holidays so all residential shipments between November 19 – December 2, and December 17-23. No peak season surcharge for residential Ground-shipped packages during the two-week period from Dec. 3 to Dec. 16. UPS hired about 95,000 seasonal workers during 2016’s holiday season
A Peak Surcharge will apply to each package addressed or delivered to a location that is a home, including a business operating out of a home. The Peak Surcharge will apply in the amounts set forth in the chart below to the indicated service levels and Peak Periods.
A Peak Surcharge will apply to Packages with length plus girth [(2 x width) + (2 x height)] combined over
130 inches and packages with an actual weight of more than 150 pounds, or that exceed
108 inches in length, or that exceed a total of 165 inches in length plus girth [(2 x width) + ( 2 x height)]
combined, as measured to determine their billable weight.
If you are a UPS shipper, you will see the increased cost of transportation impact your bottom line the most. While some services will not have a money-back guarantee, many services will still see our refund technology hard at work auditing invoices. We are able to input these blackout dates into our small parcel auditing programming to ensure you receive all possible late shipment refunds.
While these surcharges and rates are new for 2017, that does not mean that they have to stay. Everything on your FedEx and UPS contracts is negotiable, a deeper logistics and transportation insight could allow you to lower these fees in 2018. Contact Refund Retriever today to start your small parcel auditing or contract evaluation.
Small Parcel Auditing and you!
Even though FedEx and UPS have increased surcharges, our proprietary guaranteed service refund and billing mistake software can lower your shipping costs. Rising freight costs and transportation impact your bottom line. If your package is even 60 seconds late, you are entitled to a full refund for the shipping costs. Refund Retriever will find these late UPS and FedEx deliveries and will ensure you get a full credit.
Contact Refund Retriever to gain insight on your rising logistics costs. Refund Retriever was founded in 2006 in Houston, Texas and can provide a full suite of accessorial charge reports and discount rate analysis to reduce your shipping costs.