Why Am I Being Charged This Additional Handling Surcharge?

One of the more significant changes UPS and FedEx have made recently is to the additional handling surcharge. As we have seen over and over again, when one carrier makes a change, the other typically follows suit not long after. And that is exactly what has happened with the additional handling surcharge.

Previously, only packages 60 inches and over would have been assessed the additional handling surcharge. However, on June 1, 2016, FedEx announced that they intended to reduce that maximum length from 60 inches to 48 inches. Not long after, UPS made the same changes.

The justification the carriers have always used for the additional handling charge was that it created a manual process in their automated system. Basically, the items had to be hand-carried through the facilities as opposed to just being put into the automated conveyance system. The 60-inches rule seemed logical originally because anything under that didn’t require a manual process. So it begs the question, what changed? Did they get all new conveyance systems in their facilities that could only handle 48 inches and smaller? Of course not. As with all of the other 130+ surcharges, what has changed is the carriers’ ability to get detailed analytics on everything they handle. In this case, since they are measuring every single package in their system, they have noticed that shippers are moving more packages between 49 and 59 inches than they are 60 inches and above. This is just another example of why it is so critical to have parcel management reporting and analytical tools at your disposal so you can accurately assess the impact of carrier changes.

UPS’s Additional Handling Surcharge Explained

For 2017, UPS will apply the additional handling fee of $10.85 per package to any package that requires special handling, as determined by UPS in its sole discretion, including but not limited to:

• Any article that is encased in an outside shipping container made of metal or wood.
• Any cylindrical-like item, such as a barrel, drum, pail, or tire, that is not fully encased in a corrugated cardboard shipping container.
• Effective January 8, 2017, any package with the longest side exceeding 48 inches or its second-longest side exceeding 30 inches.*
• Any package with an actual weight of more than 70 pounds.
• Each package in a shipment where the average weight per package is greater than 70 pounds and the weight for each package is not specified on the source document or the UPS automated shipping system used.

*Will not be assessed when a large package surcharge is applied.

FedEx’s Additional Handling Surcharge Explained

For 2017, for FedEx Express^®, FedEx Ground^®, FedEx International Ground^TM, and FedEx International Express, the charge for additional handling is $11.00 per package.

Express Packages

A surcharge applies to any package that:

• Measures greater than 60 inches along its longest side.
• Measures greater than 30 inches along its second-longest side.
• Has an actual weight of greater than 70 pounds.
• Is not fully encased in an outer shipping container.
• Is encased in an outer shipping container not made of corrugated fiberboard (cardboard) materials, including but not limited to metal, wood, canvas, leather, hard plastic, or expanded polystyrene foam (e.g., Styrofoam).
• Is encased in an outer shipping container covered in shrink wrap or stretch wrap.
• Is encased in a soft-sided pack that exceeds 18 inches along its longest side or 13 inches along its second-longest side or 5 inches in height.
• Is cylindrical, including (without limitation) cans, buckets, barrels, drums, or pails that are not fully encased in a shipping container made of corrugated fiberboard (cardboard) materials.
• Is bound with metal, plastic, or cloth banding; has wheels, casters, handles, or straps (including packages where the outer surface area is loosely wrapped, or where the contents protrude outside the surface area); or would become entangled in or cause damage to other packages or the FedEx sortation system.

The additional handling surcharge does not apply to U.S. express packages that measure greater than 108 inches along their longest side. Such packages are subject to the FedEx oversize charge.

Express Freight

A surcharge applies to any piece, skid, or pallet of freight that measures greater than 70 inches along its longest side. For U.S. express freight services, this surcharge applies per piece, per skid, or per pallet even if multiple pieces of freight are bundled in a shipment. FedEx reserves the right to assess additional handling charges for freight that requires special handling during transit.

For FedEx Ground Services

A surcharge applies to any package that:

• Measures greater than 48 inches but equal to or less than 108 inches along its longest side.
• Measures greater than 30 inches along its second-longest side.
• Has an actual weight of greater than 70 pounds.
• Is not fully encased in an outer shipping container.
• Is encased in an outer shipping container made of metal or wood.
• Is cylindrical, including (without limitation) cans, buckets, barrels, drums, or pails that are not fully encased in an outer shipping container made of corrugated fiberboard (cardboard) materials.
• Is bound with metal, plastic, or cloth banding (including packages where the outer surface area is loosely wrapped or creased, or where the contents protrude outside the surface area); or would become entangled in or cause damage to other packages or the FedEx sortation system.
• This surcharge applies per piece even if multiple pieces are bundled in a shipment. FedEx reserves the right to assess additional handling charges for packages that require special handling or that require FedEx to apply additional packaging during transit.

Historical Annual Increases to Additional Handling

This is one of the easier fees to find, as it’s so large that many shippers find it on their own. However, like all fees, it’s not presented in any systematic and trackable way. You’ll need our tools to see the exact package totals that are getting this charge.

If you’re incurring a decent number of these, we would recommend auditing every invoice you get line by line (or using our tools) to make sure you are only receiving this charge when it’s deserved.

The better course of action (obviously not open to all shippers) is to try and eliminate this package size from your arsenal of shipping options. Many shippers have relied on parcels this size even when they aren’t necessary (there is no single component of the shipment that measures more than 48 inches).

If this package is crucial to your operations, then the next course of action is negotiation. This charge can be negotiated down, which can have an immediate impact on your bottom line.