The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

FedEx follows UPS with peak surcharges beginning Monday

September by September
06/06/2020
in Blog
FedEx bắt đầu thu phụ phí mùa cao điểm từ ngày 08 tháng 06
  • FedEx announced new surcharges Wednesday. The surcharges on U.S. domestic SmartPost, Express and Ground packages will go into effect Monday until further notice.
  • Residential Ground and Express surcharges — 30 cents per package — will apply to shippers with combined volume across the two services exceeding 40,000 parcels in a week or which ship 120% of the shipper’s weekly volume average from a February baseline.
  • Large or oversize parcels defined as those exceeding 96 inches in length or 130 inches in length and girth, will be subject to a $40 surcharge. Parcels that require additional handling will also be subject to new fees.

FedEx’s surcharges come roughly one week after UPS introduced similar fees, with some subtle differences. UPS’ volume threshold for residential surcharges to kick in is 25,000 parcels, not 40,000. And its large parcel charge is slightly more at $31.45.

The move means the surcharges are unlikely to be a competitive factor, because both carriers have upped their costs to shippers. Many shippers will have to absorb or pass on the extra cost in an already fraught environment — especially those experiencing a marked uptick in volume, as many B2C e-commerce shippers are.

“As the impact of COVID-19 continues to generate a surge in residential deliveries and oversized items, the peak surcharges will help us manage the demand while maintaining strong levels of service for our customers,” a FedEx spokesperson told Supply Chain Dive via email. FedEx CEO Fred Smith said in March the carrier was “attacking costs” to protect the bottom line from increased operating expenses and uncertainty brought on by the pandemic.

In-sourcing SmartPost is one of the central cost-saving measures Smith named in March. In theory, SmartPost volume will add density to FedEx Ground. The SmartPost surcharge puts shippers relying on that service in a “precarious position,” according to Nate Skiver, founder of consulting firm LPF Spend Management. Because SmartPost is FedEx’s most economical service, a 40-cent surcharge represents a more substantial increase as a share of total parcel shipping spend.

“Do [shippers] pay the SmartPost surcharge in the short-term (negotiate a concession), in hopes that they can secure comparable Home Delivery pricing…or do they pursue other carrier options to ensure service continuity and mitigate expense increases?” asked Skiver. The surcharge may cause some shippers to change service providers sooner that they might have without them.

“While this scenario does not describe every SmartPost shipper’s dilemma, I am aware of several in this very position,” Skiver said.​

Source: Supplychaindive
Tags: fedexSurcharge

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
Private: TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

Target: Decline profit when excess inventory 

Target: Decline profit when excess inventory 

12 months ago
0
Target mua lại công nghệ của start-up về giao hàng siêu tốc – Deliv

Target to acquire Deliv tech as the last-mile startup shuts down

3 years ago
0
FLOW: A new supply chain information sharing initiative of U.S

FLOW: A new supply chain information sharing initiative of U.S

1 year ago
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

12 months ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftairlinesamazonAppleblockchainBoeingchinachip supply chainCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEVFTAexportfedexgoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
  • Cross-docking: The key to Walmart’s great success

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00