Effective 12/1, FedEx expanded its criteria for assessing shipments subject to a dimensional additional handling surcharge or an oversize charge. The carrier added cubic volume as a new criterion, alongside existing measures.
Specifically, any package with a volume exceeding approximately 0,17 cubic meters, calculated by multiplying length, width, and height, will incur a dimensional additional handling surcharge. For the oversize charge, the carrier added volume and weight criteria, in addition to length and girth. This surcharge applies to packages with a volume above approximately 0,28 cubic meters or a weight over 50 kg.
UPS will implement similar adjustments starting next week. According to its website, domestic packages exceeding approximately 0,17 cubic meters in volume will incur an additional handling fee. Furthermore, packages with a volume over approximately 0,28 cubic meters or a weight exceeding 50 kg will be subject to a large package surcharge for domestic shipping.
A comparison table from FedEx and UPS shows that the minimum additional handling surcharge is around 30 USD per package, while the oversize charge can exceed 300 USD, varying by shipping distance and whether the delivery is commercial or residential.
Paul Yaussy, head of parcel contract analytics at Loop, stated that these changes mean many packages that previously avoided surcharges will now be subject to them. For example, a package measuring approximately 117 x 60 x 40 cm was not previously classified as oversize, but under the new rules, it will incur a surcharge.
"I believe many businesses will be surprised by this change", Yaussy commented.
Analysis by logistics data company Sifted indicates that businesses shipping light but voluminous goods will face the greatest impact. Customers whose packages shift from the additional handling surcharge to the significantly higher oversize charge will experience a substantial increase in costs. Mingshu Bates, Director of Analytics and President of Parcel at AFS Logistics, shared that one of her clients saw their total costs triple due to this change.
However, Bates noted that businesses can mitigate the impact by renegotiating surcharge rates with carriers or adjusting packaging dimensions to avoid triggering the fees.
"If you're selling certain items, businesses must pay close attention to carton sizes", Bates said.
The Dan (Source: Supply Chain Dive)
