05 Dec What’s a FedEx Additional Handling Surcharge?
What’s a FedEx Additional Handling Surcharge?
The FedEx Additional Handling Surcharge is the somewhat nefarious charge that FedEx first announced on June 1st of 2016, only to be followed about a week later by a similar announcement from UPS. The fee cost certain shippers a ton and I guess that isn’t surprising since that was pretty much its purpose.
Here’s the FedEx Announcement. “A surcharge applies to any FedEx Ground® package that measures greater than 48 inches but equal to or less than 108 inches along its longest side.” This decreases the previous standard which was 60 inches along the longest side.
How much does the FedEx Additional Handling Surcharge cost?
The Additional Handling Surcharge is a flat rate of $10.50 in 2016 which can be a pretty expensive addition to an otherwise lightweight package. The charge was a somewhat obvious attempt to capture additional fees for shippers that had developed packages that slipped under the previous standard of 60″. It’s also slated to rise to $11 in 2017.
The reason often cited for the increase is that packages this size overhand a traditional pallet and therefore require additional labor or logistic cost. While the overhang may be true, this increase is for single parcels which are not shipped on pallets.
What can I do about this extra charge?
This is one of the easier fees to find as it’s so large, many shippers find it all 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, I would recommend auditing every invoice you get line by line (or use our tools) to make sure you are only receiving this charge when its 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 could have an immediate impact on your bottom line.