FedEx surcharge takes effect
1st November 2021

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Consumers will have to dole out extra cash for certain FedEx shipments starting Monday. 

The mail carrier added a fuel surcharge to all FedEx Express, FedEx Ground, and FedEx Freight shipments.  

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The next charges won't hit until after the holiday season. 

Effective Jan 3., all FedEx Express, FedEx Ground and FedEx Home Delivery shipping rates will increase by an average of 5.9%. Meanwhile, all FedEx Freight rates will increase by an average of 5.9% to 7.9%, according to FedEx. 

A FedEx Express courier prepares the numerous packages inside the delivery truck parked on the street.  (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images / Getty Images)

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FedEx said the surcharge, one of a handful of added charges that will hit consumers through 2022, is due to the "incremental costs associated with the challenging operating environment." 

In September, it became clear that FedEx had been getting hit hard by the tight job market.

During that month, the package delivery company said that its costs were up $450 million in the most recent quarter as it paid higher wages in an attempt to keep and attract workers while demand for shipping increased. 

In fact, due to the labor crunch, the carrier was even forced to reroute hundreds of thousands of packages every day. 

FedEx Chief Operating Officer Raj Subramaniam said during an earnings call that there have been "widespread inefficiencies" in its operation due to "constrained labor markets" which have ultimately forced the company to divert packages.  

Subramaniam outlined the impact saying more than 600,000 packages a day were being rerouted across the entire FedEx Ground network.  

FEDEX REROUTING MORE THAN 600K PACKAGES A DAY BECAUSE OF LABOR SHORTAGES

FedEx hopes the recently added fees, in addition to the ones slated to hit in 2022, will enable it to "continue investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently." 

Here are the next surcharges and when they will take effect:  

Jan. 17: 

FedEx Freight will have a "No Shipment Tendered" surcharge that's applied when a pickup is performed and no shipment is tendered to the carrier.

The International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will take effect and will be determined on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin or destination location for International Express Freight and Parcel services, according to FedEx. 

A "Delivery and Returns Surcharge" will take effect and will be assessed on packages that are delivered or returned using FedEx Ground Economy services.

Jan. 24: 

Additional "Handling Surcharge and Oversize Surcharge" rates for U.S. Express Package Services and U.S. Ground Services will be applied and determined based on the shipment’s zone, according to FedEx. 

The Associated Press contributed to this report

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