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FedEx Ground & UPS "Additional Handling Surcharge" is Changing June 2016 (UPDATED 5/31/16)

Posted by Jason Archambault on 24th Mar 2016

FedEx Ground & UPS "Additional Handling Surcharge" is Changing June 2016 (UPDATED 5/31/16)

We just found out that FedEx Ground's "Additional Handling Surcharge" is Changing June 1, 2016. (UPDATED 5/31/16: UPS will be instituting the same change, only UPS will make the change on June 6th, 2016, on Ground packages only). This is a $10.50 per package surcharge. We like to stay on top of changes in the parcel shipping world, as we do a lot of shipping, and so do our customers! We want to keep our customers shipping costs down as low as possible, and we want to help you do the same.

Let's take a closer look at the surcharge in question. There are many ways you can currently receive this particular surcharge:

From Fedex.com: Ground. A surcharge applies to any package that: 1) measures greater than 60 inches but
equal to or less than 108 inches along its longest side; 2) measures greater than 30 inches
along its second-longest side; 3) has an actual weight of greater than 70 lbs.; 4) is not
fully encased in an outer shipping container; 5) is encased in an outer shipping container
made of metal or wood; 6) is cylindrical, including (without limitation) cans, buckets,
barrels, drums or pails that are not fully encased in an outer shipping container made
of corrugated cardboard; 7) 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 8) would become entangled in or cause
damage to other packages or the FedEx conveyance system. This surcharge applies per
piece even if multiple pieces are bundled in a shipment. We reserve the right to assess
additional handling charges for packages that require special handling or that require
FedEx to apply additional packaging during transit.

To understand the upcoming, June 1, 2016 change to this Surcharge , let's take a look at  the above section 1). From what we have been reading online, the maximum length before the $10.50 surcharge will kick in, will be reduced from 60 inches to 48 inches. So any package over 48" will, as of June 1st 2016, will be accessed the $10.50 per package surcharge.

Let's face it, shipping costs can very quickly and easily cut into your bottom line. The good news is, we found this out a little over 2 months before this change takes place. This gives us all plenty of time to start redesigning our products and/or packaging, that will be effected by this change. Luckily we do not ship many packages over 48" long, but there are a few. We are going to try redesign some of these longer products to keep the shipping box at 48" or less on it's longest side, when at all possible. I encourage you to take a look at any packages that you ship that measure greater than 48" on it's longest side and see if there is anyway that you can adjust your shipping box to avoid this surcharge and help keep your shipping costs down. Good luck, and keep on shipping!

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