FedEx Corp. said today it will increase its delivery surcharges on larger and heavier packages, a response to an increase in demand to move goods outside of the company's normal package-handling characteristics.
The Memphis-based company said it will raise its "additional handling surcharge" to $20 per package from $12 on packages with an actual weight of more than 70 pounds. The increase, which takes effect Sept. 3, applies to packages moving in U.S. and international express, and U.S. and international ground services, the company said.
FedEx will also more than double its charge to $675 on each "unauthorized" package moving in its ground parcel network, known as "FedEx Ground." The current charge is $300 per package. That change also goes into effect Sept. 3.
Under FedEx policy, these types of packages are unauthorized, may be refused or returned to the shipper, and would be delivered at the option of FedEx Ground.
In its service announcement, FedEx said it "continues to experience strong demand for transportation of larger and heavier packages." The increases enable the company to "responsibly manage capacity through our network to maintain outstanding service for these larger packages," it said.
Separately, FedEx said it will not apply residential delivery surcharges on peak season traffic except on those shipments that the company classifies as oversized, unauthorized, or would necessitate additional handling.
During the peak, FedEx will charge $3.20 at its U.S. express business and U.S. and international ground services for a package that needs additional handling. The surcharge on an oversized package would be $27.50, while a ground unauthorized package surcharge will be $150 for U.S. and international shipments, FedEx said.
The surcharges will take effect Nov. 19 and run through Dec. 24, the company said.
Rival UPS Inc. has said it would raise its surcharges by a few pennies per package of next day air and ground services during the peak period.