FedEx’s cost increases each year due to accessorial fees; there is no getting around them. Accessorial charges have rate increases each year, just as the general rates do. Surcharges for additional, supplemental, or value-added services can easily account for up to 50 percent of your overall FedEx or UPS invoice costs. Accessorial Fees in a FedEx Negotiation need to be at the top of your priority list.
When do you see accessorial fees applied?
Accessorial charges are assessed while a shipment is in transit or upon delivery and can present a vital cost management issue for shippers. Very few packages will not have at least one accessorial fee present on the final invoice.
Where do you see accessorial fees on a FedEx and UPS invoice?
Each package has numerous accessorial charges, making up a high percentage of your overall shipping expenses. Fortunately, you can reduce shipping costs because of these charges. Why? Once these charges are approved, you can bet that the carrier invoices contain errors, which means you could be eligible for billing mistake refunds or credits to your account!
How Many accessorial fees are there?
FedEx and UPS identify over 100 accessorial surcharges, many with name variations and costs for a single service. Our data reveals nearly 300 additional fees not included in the base shipping rates! Accessorial Fees in a FedEx Negotiation should be completely quantified and indexed in order of importance. Logistics reporting can reveal shipping intelligence that will save your company money on FedEx and UPS shipping.
Necessary Accessorial Fees in a FedEx Negotiation
Additional Handling Surcharge (AHS)
- Why it matters: This fee applies to packages based on weight, dimensions, or packaging type. With frequent increases, it can add $50 or more per package.
- Negotiation tip: Push for percentage reductions or caps on these accessorial fees in a FedEx negotiation, especially if your shipping profile includes many irregular-sized parcels.
Delivery Area Surcharge (DAS) / Extended DAS
- Why it matters: Charged for residential and rural deliveries, these surcharges apply to a large portion of U.S. ZIP codes. Costs can exceed $8 per package.
- Negotiation tip: Ask for discounts by service type (Ground, Express, Residential) since the surcharge levels differ.
Residential Delivery Charge
- Why it matters: Nearly all B2C shipments incur this fee, making it critical for eCommerce shippers.
- Negotiation tip: Request a flat waiver or deep discounts tied to volume thresholds.
Oversize Charge and Large Package Surcharges
- Why it matters: Can run $110+ per shipment and also triggers a 90-lb billable weight minimum.
- Negotiation tip: If you ship large items, reducing this fee or securing a grace buffer on dimensions can save thousands.
Fuel Surcharge accessorial fees in a FedEx negotiation
- Why it matters: It applies as a multiplier to the base rate and most accessorials, meaning its effect compounds.
- Negotiation tip: Push for a cap on percentages—this is often one of the most significant long-term savings for accessorial fees in a FedEx negotiation.
Address Correction Fee
- Why it matters: FedEx now charges over $20 per correction, which adds up quickly in high-volume operations. FedEx even applies a fuel surcharge to address correction fees!
- Negotiation tip: Try to cap or waive this fee—especially if your account shows a low correction rate.
