UPS and FedEx’s Latest Surcharge

#PL Outsourcing

How do your packages size up?

FedEx and UPS are set to implement a new dimensional surcharge for parcel shippers. While this will not apply to every shipper, it will be a significant cost increase for those parcel shippers that it impacts. The change for both are effective on June 1st. Both carriers are reducing the maximum standard package length to 48”.  This is a significant reduction from the previous 108”.  Packages
exceeding 48” will be subject to a $10.50 surcharge. They contend that the longer packages are not compatible with their automated material handling systems and must be handled manually.

Shippers need to check their current products/packaging to determine the maximum dimensions.  If any dimension is greater than 48” efforts need to be made to see how it can be reduced, if possible. Shippers also need to reexamine their contracts to determine if the new surcharge is allowed under current terms.  This may be a time to consider competitively renegotiating your parcel carrier relationships.

Jeff Kazanow

Posted in: General, Retail, Supply Chain Best Practices

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