If you’re looking for a breakdown of peak season surcharges, see our comprehensive chart for the major carriers and the most popular services—2023 Shipping Peak Season and Demand Surcharges
Curious which surcharges will affect your peak season shipping invoice this year? Below is a comprehensive guide to the surcharges with the highest impact. This chart will continue to be updated as more surcharges are added throughout the year.
The 2022 annual rate increases are included as well.
Please note, the majority of charges in the chart below are effective indefinitely. For the purposes this chart the annual rate increases are cited with an end date on December 31, 2022 even if the charges may continue on after that date.
Fuel surcharges are calculated as a percentage of the weekly base fuel rate.
For other shipping carrier news and updates see our Average Transit Times & Shipping News.
Shipping Fees & Surcharge Updates
FedEx
FedEx Peak Season Surcharges
FedEx has announced its annual, peak holiday season surcharge updates.
Effective Sep 5, 2022 – Oct 2, 2022:
- Additional Handling: $3.45 per package
- Oversize Charge: $39.50 per package
Effective Oct 3, 2022 – Jan 15, 2023:
- Additional Handling will increase to $6.55 per package
- Oversize Charge will increase to $68.75 per package
- Ground Unauthorized Package will increase to $385 per package
Peak Surcharge (Ground Economy Package Services):
- Oct 31, 2022 – Nov 27, 2022: $1.50 per package
- Nov 28, 2022 – Dec 11, 2022: $2.50 per package
- Dec 12, 2022 – Jan 15, 2023: $1.50 per package
FedEx is also implementing a Peak Residential Delivery Charge (Express and Ground U.S. domestic residential packages excluding Ground Economy and One Rate) from Oct 31, 2022 – Jan 15, 2023, for customers shipping more than 20,000 residential and Ground Economy packages in a week. The surcharge amount will be based on a “Peaking Factor” – the percentage increase of weekly packages shipped between the “calculation week” and the average number of weekly residential and Ground Economy packages shipped June 6, 2022 – July 3, 2022. The Ground surcharge ranges from $1.25 – $6.00 per package and the Express surcharge ranges from $2.25 to $7.00 per package. Peaking factors and surcharge amounts are determined separately for Express and Ground.
Read the full announcement and details on how peaking factor is calculated, here. Surcharge details and Peaking Factor charts can be found here.
FedEx Annual Surcharge Increases
The following FedEx Express, FedEx Ground, FedEx Ground Economy and FedEx Freight surcharge changes will take place:
Effective January 17, 2022
- FedEx Freight introduces a No Shipment Tendered surcharge for pickups performed when no shipment is tendered to the carrier.
- International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.
- Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.
Effective January 24, 2022
- Additional Handling Surcharge and Oversize Charge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone.
Find more information here.
FedEx Annual Rate Increases
- Rate increases will apply to the following services: FedEx Express, FedEx Ground, FedEx Ground® Economy, and FedEx Freight.
- Changes to shipping surcharges and fees may apply to your shipment and affect your total shipping rate.
- Changes to the Delivery Area Surcharge ZIP code lists for FedEx Express and FedEx Ground will also begin.
- International shipments will have an additional option for time-definite deliveries in one to three business days.
Read more about these announcements here.
FedEx Annual Rate Increases
The average rate increase across all FedEx services: 5.9%
Highlights:
Average rates for ground services (including Ground Economy) will increase to 7.5% for small parcel 2-5 lbs, zones 2-8.
The minimum package charge will increase from $8.76 to $9.36 (1 lb, zone 2).
Large increases for Ground Economy (formerly SmartPost) services affecting residential delivery.
NEW: effective January 24, 2022 Additional Handling and Oversize packages will move to tiered pricing instead of flat-rate pricing.
NEW: Two peak surcharges take effect on January 17, 2022 until further notice.
$0.60 per package surcharge will apply to residential Ground and Express packages, with qualifying volume criteria.
$1.00 per package peak surcharge begins and will apply to all Ground Economy packages, with no volume criteria.
Read the full announcement.
UPS
USP Fuel Table Increase
Yet again UPS is increasing their fuel rates. After a year of massive fuel increases, this will surely increase the cost of shipping over the holiday rush.
The new fuel tables are effective September 5, 2022. They apply to domestic and international transportation charges and to the following accessorial charges:
Delivery Charges, Pickup Charges, Remote/Extended Delivery and Pickup Charges, Residential Surcharge, Return Services w/ Pickup, Saturday Delivery and Pickup, Signature Required Services, Additional Handling, Large Package and Over Maximum Limits, Oversize Pallet Handling Surcharge, Peak/Demand Surcharges
- Export Air Fuel Surcharges will be between 18.75% – 21.75%
- Import Air Fuel Surcharges will be between 22.50% – 25.50%
Read the updated fuel table costs here.
UPS Annual Rate Increases
The average rate increase across all UPS services: 5.9%
Highlights
Zip codes included in Delivery Area Surcharge and Extended Delivery Area Surcharge have shifted. UPS now publishes a special guide to track these changes.
NEW: Remote Area Surcharge of $12.00 for ~2,700 zip codes (added in conjunction with the Delivery Area Surcharge and the Extended Delivery Area Surcharge).
Additional Handling and Oversize packages will increase and continue as tiered pricing (as updated in April of 2021).
SurePost rates were announced separately and a full breakdown according to zone can be found here.
Read the full announcement.
USPS
Temporary Rate Adjustments for 2022 Peak Holiday Season
USPS has announced rate increases that will span the peak season holiday surge. The zone and weight details are listed in the chart above.
Effective Oct 2, 2022 – Jan 22, 2023
- Priority Mail and Priority Mail Express
$0.75 increase for Flat Rate Boxes and Envelopes
$0.25-$6.50 increase depending on zone and weight - First-Class Package Service Parcel
$0.25-$5.50 increase depending on zone and weight
Read the full announcement here.
Mailing Tube & Long Packages
The Postal Service is raising rates for mailing tubes and long packages. In an effort to phase out these odd-shaped boxes, USPS is raising rates so that it is largely unaffordable for many shippers.
This is part of the “nonstandard” fees added to regular postage costs for packages that are longer than 22 inches. The change is drastically affecting shippers with posters, fishing rods, gold clubs, and long parts and materials.
USPS is the go-to carrier choice for many smaller businesses because it is largely the cheaper option. For example, if a seller shopped around for the best price to ship a 6-foot item, USPS would cost $8.24, UPS Ground would cost $20.15, while FedEx Home would cost $39.38.
Read more about the implications of this rate change.
Dimension Fee Increate
The USPS dimension fee increases announced in November, 2021 are taking effect starting April 3, 2022. These are new fees added for larger items or if the dimensions of the package are incorrect or not disclosed.
- Dimension Noncompliance: $1.50 added to packages that exceed 22” in length or 1 cubic foot.
- Nonstandard Fees: between $4.00 – $15.00 added to packages that exceed 22” in or 2 cubic feet.
Average Rate Increases
The average rate increase across USPS services: between 3.1% – 7.5%
Highlights:
1-5 lbs packages will increase an average of 5.5%.
11-25 lbs packages will decrease 16.1% on average.
26-70 lbs packages will increase an average of 11.1%.
NEW: two new retail mail products focused on local communities.
Plus One. This is intended for businesses to reach local customers utilizing mail.
Connect Local Mail. This allows documents to be sent locally for same- or next-day delivery.
NEW: additional fees to packages exceeding certain dimension thresholds.
Dimension Noncompliance: $1.50 added to packages that exceed 22” in length or 1 cubic foot.
Nonstandard Fees: between $4.00 – $15.00 added to packages that exceed 22” in or 2 cubic feet.
Below are the planned retail price increases for Priority Mail Flat Rate retail products:
Read the full announcement.
Tags: freight
