FedEx and UPS Implementing Significant Surcharges Now

Protect yourself from price increases and surcharges.

FedEx and UPS are imposing peak surcharges due to COVID-19. Here’s everything parcel shippers need to know.

Effective April, 5th UPS imposed peak surcharges on UPS Worldwide Express, UPS Worldwide Express Freight, and UPS Expedited shipments originating from China and Hong Kong to North America and Europe. FedEx followed suit with an April 6th implementation of surcharges on all FedEx Express and TNT international parcel and freight shipments. Both carriers have updated these policies since April so we have compiled a guide with everything you need to know.

Swan Leap Surcharges
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FedEx and UPS Implementing Significant Surcharges Now

Protect yourself from price increases and surcharges.

FedEx and UPS are imposing peak surcharges due to COVID-19. Here’s everything parcel shippers need to know.

Effective April, 5th UPS imposed peak surcharges on UPS Worldwide Express, UPS Worldwide Express Freight, and UPS Expedited shipments originating from China and Hong Kong to North America and Europe. FedEx followed suit with an April 6th implementation of surcharges on all FedEx Express and TNT international parcel and freight shipments. Both carriers have updated these policies since April so we have compiled a guide with everything you need to know.

High Volume Parcel and Freight Shippers Will Be Hit the Hardest.

At first glance, it might seem like the charges are applied to shipments across the board. This isn’t true. In the case of UPS there is an increased surcharge for customers whose volumes have increased due to COVID-19 and they are applying that model to their oversize surcharges. Likewise, FedEx is applying surcharges by comparing a customer’s shipping volume from February 2020 with a customer's current shipping volume per invoice period.

FedEx will impose three temporary peak surcharges, effective June 8.

  1. Temporary Surcharge: FedEx SmartPost shipments will cost an additional $0.40 per package.
  2. Peak - Oversize: Oversize packages shipped in the U.S. will cost an additional $30 per package.
  3. Peak - Residential Delivery Charge: U.S. domestic residential shipments will cost an additional $0.30 per package.
    1. This only applies to enterprise customers who ship 40,000 residential packages combined (excluding FedEx SmartPost and FedEx One Rate®); and whose volume in that same week exceeds 120% of their average weekly volume in February 2020.
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FedEx Surcharge Table

UPS’s surcharges, which began April 12, are a bit more complex.

  1. UPS Ground Residential and UPS SurePost Shipments in the U.S.: A per-package surcharge will be applied to shipments in the U.S..
    1. This applies to customers who exceed their February 2020 shipping volume by more than 25,000 packages.
    2. Once customers reach the 25,000 package initial threshold, the surcharge applies to the weeks in which a customer exceeds 110% of their average weekly volume from February 2020.
  1. Oversize Shipments from U.S. Origin to U.S. Destination: A per-package surcharge will be applied to oversize shipments in the U.S..
    1. The surcharge will apply to customers who shipped more than 500 oversized packages in the previous applicable invoice week.
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UPS Surcharge Table

Transform the Way You Ship

Protect yourself from price increases and surcharges.

By leveraging the power of SwanLeap’s TMS shippers can insulate from these charges with visibility, speed and control. Having the power to shop regional carriers alongside major parcel carriers from one single platform unshackles you from meeting volume discounts while allowing you to ship at market rate. SwanLeap’s analytics give you live access to regional performance and volume allowing you to see trends in shipping and make intelligent decisions.

Download our FedEx and UPS surcharge guide below.