How Will FedEx & UPS Peak Season Surcharges Affect My Business in 2018?

FedEx and UPS recently announced their peak season surcharges for the 2018 holiday season. If you want to avoid Santa’s naughty list this year (and meet your business’ bottom line), you’ll want to make sure you’re aware of these updates, plus the carriers’ standard surcharges which will remain in effect during the holidays. To help you figure out the impact that these will have on your business, we’ve put together the following handy charts outlining the most popular surcharges. Here’s a look at the 2018 FedEx and UPS peak season surcharges.

2018 Residential Peak Season Surcharges

For most e-commerce business owners, the residential peak season surcharges will have the biggest impact on your business, since many packages are delivered to your customers’ homes.

For the second year in a row, FedEx will not be adding additional residential surcharges this holiday season. Keep in mind that FedEx does charge residential surcharges year round which will remain in effect.

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<tbody>
<tr>
<td style="border: 1px solid black; text-align: center;" colspan="2"><strong>FedEx Home Delivery (Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;" width="300"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="300"><strong>Holiday Surcharges</strong></td>
</tr>
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<td style="border: 1px solid black;"><span style="font-weight: 400;">$3.60 </span></td>
<td style="border: 1px solid black;"><span style="font-weight: 400;">None </span></td>
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In addition to its standard surcharges, UPS will be applying a peak surcharge to each package addressed or delivered to a location that is a home, including a business operating out of a home. You’ll want to pay special attention to the service level you choose and the date you send the package, since that impacts the surcharge you’ll receive.

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<tbody>
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<td style="border: 1px solid black; text-align: center;" colspan="5"><strong>UPS Residential Delivery (Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;" width="300"><strong>Service Level </strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Holiday Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Total </strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Effective Dates</strong></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="300"><span style="font-weight: 400;">UPS Ground</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.60 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$0.28</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.88</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/18 – 12/1 &amp;<br>
12/16 – 12/22</span></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="300"><span style="font-weight: 400;">UPS Next Day Air Early</span><br>
<span style="font-weight: 400;">UPS Next Day Air</span><br>
<span style="font-weight: 400;">UPS Next Day Air Saver</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.60 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$0.84 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$4.44</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">12/16 – 12/22 </span></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="300"><span style="font-weight: 400;">UPS 2nd Day Air A.M. </span><br>
<span style="font-weight: 400;">UPS 2nd Day Air</span><br>
<span style="font-weight: 400;">UPS 3 Day Select</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.60 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$0.99 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$4.59 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">12/16 – 12/22 </span></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="300"><i><span style="font-weight: 400;">Packages with a destination address within Alaska, Hawaii, or Puerto Rico: </span></i><br>
<span style="font-weight: 400;">UPS Next Day Air Early</span><br>
<span style="font-weight: 400;">UPS Next Day Air</span><br>
<span style="font-weight: 400;">UPS 2nd Day Air</span><br>
<span style="font-weight: 400;">UPS Ground</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">Depends on the zip code. For more information, visit </span><a href="http://www.ups.com/rates"><span style="font-weight: 400;">www.ups.com/rates</span></a><span style="font-weight: 400;">&nbsp;or call 1-800-PICK-UPS. </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.14 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.14 &amp; up</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/18 – 12/1 &amp;<br>
12/16 – 12/22 </span></td>
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2018 Large Package Peak Season Surcharges

For oversized packages, FedEx will add additional surcharges during the peak season, in addition to the standard fees. The oversize charge will apply to any FedEx Express U.S. package or FedEx Ground package exceeding 96 inches in length or 130 inches in length and girth [(2 x width) + (2 x height)]. Rating for an oversize package will be based on the greater of the package’s actual rounded weight or dimensional weight, subject to a 90-pound minimum billable weight.

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<tbody>
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<td style="border: 1px solid black; text-align: center;" colspan="4"><strong>FedEx Oversize Packages (U.S. Express &amp; Ground Services; Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Holiday Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Total </strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Effective Dates </strong></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$80 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$27.50 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$107.50</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/19 – 12/24 </span></td>
</tr>
</tbody>
</table>`;
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UPS will apply a peak surcharge to packages with length plus girth combined over 130 inches. In addition, during the peak period listed below, a peak surcharge will apply to domestic packages with a length exceeding 96 inches. The large package surcharge will apply to all service levels and all domestic destinations.

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<tbody>
<tr>
<td style="border: 1px solid black; text-align: center;" colspan="4"><strong>UPS Large Packages (Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Holiday Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Total </strong></td>
<td style="border: 1px solid black; text-align: center;" width="200"><strong>Effective Dates </strong></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">Subject to a minimum billable weight of 90 pounds cost plus $65.00</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$26.20 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$91.20 &amp; up</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/18 – 12/22 </span></td>
</tr>
</tbody>
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2018 Additional Handling Peak Season Surcharges

The FedEx additional handling surcharge will apply to any package that meets one or more of the following criteria:

Package shape and dimensions may change during transit, which can affect the package’s dimensional weight and surcharge eligibility. If the dimensions change during transit, FedEx may make appropriate adjustments to the shipment charges at any time. For U.S. Express and Ground services, this surcharge applies per piece even if multiple pieces are bundled in a shipment.

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<tbody>
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<td style="border: 1px solid black; text-align: center;" colspan="4"><strong>FedEx Additional Handling (U.S. Express &amp; Ground Services; Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Holiday Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Total </strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Effective Dates</strong></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">-$12 per package (dimensions or packaging)</span><br>
<span style="font-weight: 400;">-$20 per package (weight)</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.20 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$15.20</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/19 – 12/24</span></td>
</tr>
</tbody>
</table>`;
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UPS will apply an additional handling surcharge to packages that require special handling, including, but not limited to:

This peak season surcharge applies to all service levels and all domestic destinations.

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<tbody>
<tr>
<td style="border: 1px solid black; text-align: center;" colspan="4"><strong>UPS Additional Handling (Cost Per Package)</strong></td>
</tr>
<tr>
<td style="border: 1px solid black; text-align: center;"><strong>Standard Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Holiday Surcharges</strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Total </strong></td>
<td style="border: 1px solid black; text-align: center;"><strong>Effective Dates</strong></td>
</tr>
<tr>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$12 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$3.15 </span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">$15.15</span></td>
<td style="border: 1px solid black;" width="200"><span style="font-weight: 400;">11/18 – 12/22 </span></td>
</tr>
</tbody>
</table>`;
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Once you’re familiar with the FedEx and UPS peak season surcharges, you’ll be able to more accurately forecast your shipping costs and budget for the holiday season. For more information, check out the FedEx surcharge page and the UPS additional charges page and peak season surcharges PDF.

Stay tuned for more holiday tips and news commentary from the team at Shippo to help you prepare your business for the upcoming selling season. If you’d like more advice, check out our recent USPS, FedEx, and UPS blog posts.