May 18, 2016

Major Shippers Increase Large Packages’ Surcharge

Author: Renee Bingling

Following FedEx’s announcement that it will lower the large package size threshold for its handling surcharges; UPS has now stated that it will follow suit. What this means is that come June, you can expect an extra charge of $10.50 on packages with the longest side exceeding 48 inches, instead of the current threshold of 60 inches.  On June 1, you will see the change taking effect first on FedEx packages and just 5 days later, on June 6; the same will apply to UPS packages.  It is important to note that the change will not affect all other additional handling surcharge sizes, weight and packaging parameters and will only apply to shipments within the U.S., and between U.S. and Canada. 

Both shipping giants have noted that the latest move was made to offset the costs of handling increasing volumes of non-traditionally sized shipments in their ground shipping network. Additionally, these volumes are often difficult to be processed through the companies’ mechanized systems; which were built for lighter, smaller, more conventional dimensions.  FedEx® Executive Vice President Mike Glenn told analysts, according to MoneyTalkNews , “We are seeing a significant increase in non-traditional items now being purchased online, mattresses to new swing sets and big-screen TVs just to name a few. We welcome this opportunity but it is important that we price these items accordingly, to account for the operational complexities, such as manual sortation to person delivery, et cetera.”

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