Beginning September 29, FedEx will implement surcharges for packages requiring special handling, oversized items, and those not meeting standard shipping requirements. Starting October 27, three additional surcharges will take effect, two of which were also in place in 2024, impacting express, standard, and economy delivery services.

A worker loads packages onto a FedEx truck in San Francisco. Photo: Getty Images

A worker loads packages onto a FedEx truck in San Francisco. Photo: Getty Images

FedEx will also apply separate surcharges to business customers whose residential delivery volume exceeds a certain threshold.

The highest surcharge period will be from November 24 to December 28, coinciding with the peak holiday shopping season. All surcharges will end on January 18, 2026.

Specifically, packages requiring special handling or oversized items will incur an additional handling fee of $8.25 to $10.90 and an oversized item fee ranging from $90 to $108.50. Packages deemed non-compliant with standard shipping requirements will face the highest surcharge, from $490 to $545 per package.

From October 27, FedEx will implement demand-based surcharges for express services like Overnight and 2Day, ranging from $1.05 to $2.10 per package. Residential deliveries via FedEx Ground or Home Delivery will see surcharges from $0.40 to $0.65, while Ground Economy services will have a higher surcharge, from $2.20 to $3.55.

For large business customers exceeding 20,000 residential deliveries, an additional surcharge based on the volume exceeding the baseline will be applied, ranging from $1.55 to $8.75 per package.

These fees are tiered, with the highest rates in effect from late November to late December. FedEx stated these surcharges address increased operating costs during periods of high shipping demand, particularly the holiday season. On Cyber Monday 2024, FedEx processed nearly 24 million packages—a 70% increase over a typical day, according to Brie Carere, Executive Vice President and Chief Customer Officer.

Experts suggest these surcharges could significantly impact retailers' operating costs during the holiday season. Consequently, many businesses are exploring options like negotiating surcharge waivers, adjusting shipping volumes, or switching carriers.

FedEx's main competitor, UPS, has not yet announced its peak season pricing for this year.

Ngoc Minh (Supply Chain Dive)