Could this be referred to as “Double Dipping”, we think so!Īdding to the Surcharge and Additional Fees impact on parcel shipping costs are over 40 “Common” surcharges the Parcel Carriers assess additional fees on, such items as Additional Handling Fees, Oversize Package Fees, Address Correction Fees, Inside Delivery Fees, just to name a few.
While you would think that the base rates would include a “Fuel Factor”, (and they probably do), all carriers, Parcel, LTL and Truckload, for that matter also add additional Fuel Surcharges onto their base rates. For one thing, ALL packages are subject to Fuel Surcharges. These Surcharges are ancillary charges applied to every shipment based on any number of package characteristics. That area is what the Parcel Carriers refer to as Surcharges and Additional Fees. Now as if that’s not enough of a variance in the General Rate Increase announcement, there is another component to parcel shippers overall parcel freight costs that is often overlooked. On the other hand, if you ship packages in FedEx’ 2 Day service to Zone 2, and your packages weigh 10 pounds, you will be absorbing not a 4.9% increase, but rather a 6.4% increase for those packages. That may not be much, but in the world of parcel shipping it is extremely rare for your rates to go down when these General Rate Increases are announced. While that may be true, the amount of increase specific parcel shippers will absorb can be quite different.įor example, if you’re a FedEx Ground shipper and you ship 1 Pound Packages consistently to Zone three, (hold on to your hats), your rates will actually be reduced by an average of 1.6%. Over the years, these two parcel giants have traded positions on who announces first and which company will play “follow the leader”.įedEx in announcing their General Rate Increase for parcel shipments stated that the 2019 increases represents “an average” increase of 4.9%.
The second shoe to be dropped this year will be from UPS announcing their 2019 General Rate Increases for parcel shipments, which by the way we expect to see any day now. This past Monday, November 6, 2018, FedEx dropped the first shoe by announcing their 2019 Parcel General Rate Increases.
ICC Breaks Down the Monday FedEx Rate Increase Announcement
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