FedEx Corp. (NYSE:FDX) said Friday that it will impose a 30 cent per-package surcharge on U.S. residential delivery traffic tendered by large customers, effective Feb. 15.
The surcharge will apply to customers that shipped, on average, more than 30,000 packages per week from Jan. 4 to Jan. 31, FedEx said in a note on its website. The levy will apply to any combination of FedEx’s air, ground and last-mile delivery parcels that hit or exceed the 30,000 weekly volume threshold, FedEx said.
The levy, once it takes effect, will remain until further notice, FedEx said.
Customers only using the last-mile service, SmartPost, will be exempt from the new surcharge, FedEx said. The SmartPost service, which for years was managed in conjunction with the U.S. Postal Service, has largely been taken in house and is operated under the FedEx network.
In its statement, FedEx said the continuing surge in e-commerce volumes due to the COVID-19 pandemic continues to put elevated demands on its network, resulting in higher operating costs.
The announcement should have surprised no one given the ongoing volume spikes, said Rob Martinez, founder and co-CEO of Shipware, LLC, a parcel consultancy.
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The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
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