FedEx pivots in holiday shipping charges — except in some instances

FedEx is giving its customers an early holiday gift — while taking a stab at its rival UPS.



The delivery service announced that it will forego additional surcharges on deliveries this holiday season — unless packages require additional handling, are oversized or unauthorized. FedEx made the decision based on the growing volume of large packages moving through the FedEx Ground network during the holidays.



Specifically, this volume increased by approximately 240% over the past 10 years. It also comprises approximately 10% of all volume handled by FedEx Ground.



FedEx is taking steps to manage the volume including adding sortation and delivery capabilities that accommodate the continued rise in demand for larger, heavier packages. This also includes temporarily dedicating entire facilities to oversized packages.



The holiday season surcharge will launch Nov. 20, and run through Dec. 24. FedEx Express and FedEx Ground in the U.S. and Canada will increase handling by $3 per package. Oversized goods are subject to an additional $25 per package, and unauthorized shipments will be $300 per package.



“Packages that are oversized, unauthorized or require additional handling consume an inordinate amount of cubic space in FedEx Ground and FedEx Express equipment in the U.S. and Canada,” said Patrick Fitzgerald, senior VP, integrated marketing and communications, FedEx.



One way to accommodate these packages is to adopt a new standard for delivery trailers.



“An important solution to this issue is for Congress to adopt a nationwide standard of twin trailers at 33 ft. versus 28 ft.,” according to Fitzgerald.



“This would increase package capacity per trip, increase safety on the highways and use less fuel,” he added. “Thirty-three ft. twin trailers are currently permitted in only 20 states, and FedEx advocates for a nationwide standard of twin trailers at 33 ft., but no increase in total weight.”



FedEx’s decision to only tax these three package categories also takes a clear swing at rival UPS. The delivery company announced in June that for the first time, it will add a surcharge for orders delivered to homes during peak holiday times.



During the 2016 holiday season, UPS' average daily volume exceeded 30 million packages on more than half of the available shipping days. In contrast, on an average non-peak day, the company ships more than 19 million packages. UPS said it hired about 95,000 seasonal employees during the peak shipping period.