FedEx Quietly Unveils New Surcharge

Spend Matters welcomes another guest post from Jon Winsett of NPI, a spend management consultancy focused on eliminating overspending on IT, telecom and shipping.

For years, FedEx and UPS have partnered with the USPS to provide last-mile delivery services. This has provided shippers with a cost-friendly alternative to the carriers’ more expensive shipping options.

But, according to an article recently posted in the online edition of Parcel, this may soon change. FedEx has “quietly announced” that a $0.25 Delivery Area Surcharge will be added to all of its FedEx SmartPost shipments. This surcharge will go into effect on July 15th.

“It will affect the same 23,529 Domestic DAS and DAS Extended Zips as with standard commercial and residential deliveries.

The surcharge applies to FedEx SmartPost Parcel Select (one pound and greater), FedEx SmartPost Parcel Select Lightweight (one ounce to sixteen ounces), FedEx SmartPost Bound Printed Matter, FedEx SmartPost Media, and FedEx SmartPost Returns shipments.

You can read the fine print here.

If you’re a FedEx customer who utilizes SmartPost services, now’s the time to push back on new surcharges. There is little reason to believe that FedEx’s cost justification for this most recent example adds up, even though the carrier has yet to offer an official explanation. What does add up, however, is FedEx’s mile-long list of surcharges (370 to date) that continue to negatively impact shippers’ budgets.

Not a FedEx customer? Don’t let your guard down. If past behavior is any indication, UPS will soon follow suit with a similar surcharge.

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