What are FedEx’s demand surcharges during the 2024 peak shipping season?

What are FedEx’s demand surcharges during the 2024 peak shipping season?

FedEx, like other well known international carriers, apply demand surcharges year round to oversized parcels, those requiring additional handling, for residential delivery services, and when classed as an unauthorised package (too heavy or big). But during times of higher volumes – typically from late September until mid-January – supplementary fees are added to the established rates. The amount of those rates and their start and end dates vary depending on the delivery service, but they nevertheless make shipping at that time of year more expensive. This blog outlines those details, and acknowledges that the only way to avoid those fees is to ship before or after the season; however, the blog introduces an easy way to save on shipping – have Secureship find the cheapest shipping options for your domestic- or internationally-bound parcels.

Table of Contents

• The Peak Shipping Season
• FedEx’s Demand Surcharges
• Secureship Lowers Your Shipping Costs Year Round
• Conclusion

The Peak Shipping Season

Peak season rates vary slightly from one carrier to the next, but all encompass three major cultural holidays – Diwali, Hanukkah, and Christmas, as well as other high profile shopping events like Black Friday and Cyber Monday. And they all contribute to increased shipping volumes in the fall and early winter. For FedEx, most of its seasonal rate boosts start on September 30, 2024 and run until January 19, 2025; the only exception is for intra-Canada ground services, which starts on October 28, 2024 and also ends on January 19, 2025.

FedEx’s Demand Surcharges

FedEx’s demand surcharges occur whenever a parcel is oversized: heavier than 32.8 kg; requires special handling: contents in a container other than a cardboard box, for e.g. metal, wood, plastic; for residential delivery; and when classed as an unauthorised package: a package larger or heavier than allowed limits (greater than 68 kg, or longer than 274 cm, or has a length plus girth* bigger than 419 cm).

Surcharges applied during the 2024 peak season for the aforementioned cases are outlined below:

Type of Surcharge	Peak Season Surcharge Amount (CAD)	Total** Surcharge Amount (CAD)	Effective Dates
Oversize	$50	$152	Sep. 30, 2024 - Jan. 19, 2025
Additional Handling	$6	$27 - 33	Sep. 30, 2024 - Jan. 19, 2025
Residential Delivery	Varies depending on intra-Canada or international destination	$1.00 - 2.50	Oct. 28, 2024 - Jan. 19, 2025
Unauthorised Package Fee	$450	$1,570	Sep. 30, 2024 - Jan. 19, 2025

*length + girth = (L + 2W + 2H)

**Includes the base amount charged year round for the service

Secureship Lowers Your Shipping Costs Year Round

It may be difficult for you or your business to avoid shipping during peak season, so surcharges are likely to be the cost of doing business. However, one way to lower your base shipping costs is by engaging Secureship as your shipping broker (no charge to create an account; and no minimum monthly commitment). And you can enjoy the cost savings 12 months of the year. With Secureship’s bulk volume agreements with FedEx, Purolator, and UPS, you could save from one-third to one-half off of a carrier’s standard price.

Conclusion

Carriers like FedEx add demand surcharges on packages for reasons like being heavier or bigger than set limits, or to deliver them to a residence, or perhaps they require special handling. When shipping occurs during peak season (late September till mid-January), those surcharges are further increased in response to greater volumes and the demands they create on carriers’ capacities and personnel. While avoiding that busy season may be very difficult or impossible, you will find savings whenever you ask for a shipping estimate with Secureship’s shipping calculator. And that could lead to a reduced shipping price of up to 50% depending on when and with whom you entrust your shipment.