Please note: This article focuses on Ground and Express charges. For a full breakdown of international and other charges, see the FedEx & UPS websites.
FedEx and UPS shared their demand, previously known as “peak season”, surcharges even earlier this year than last. They were on top of their game, with UPS releasing rates on July 15th and FedEx a month later on August 15th.
This is a good thing for shippers, as it gives you more time to prepare to end Q4 with a bang!
Demand surcharges start going into effect as early as September 29th, so let’s get into the breakdown.
FedEx 2024 Peak Season Rates
Demand — Additional Handling Surcharge
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $6.95 across the entire demand period, meaning this year reaches as high as a 43.88% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/30/24 – 11/24/24 | $7.75 per package | $6.95 per package | 11.51% |
| 11/25-24 – 12/29/24 | $10 per package | $6.95 per package | 43.88% |
| 12/30/24 – 1/19/25 | $7.75 per package | $6.95 per package | 11.51% |
This surcharge is applied when a package exceeds certain weight or dimensional limits or the packaging consists of anything other than a squared cardboard box and requires additional handling:
- Greater than 50 pounds
- More than 48” on the longest side or more than 30” on the second-longest side
- Measures greater than 105 inches in length and girth — the length and girth is length plus (two times the height) plus (two times the width);
- Encased or bound with metal, wood, plastic, cloth, etc.
- Cylindrical or round item
Demand — Oversize Charge
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $73 across the entire demand period, meaning this year reaches as high as a 36.99% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/30/24 – 11/24/24 | $84.50 per package | $73 per package | 15.75% |
| 11/25/24 – 12/29/24 | $100 per package | $73 per package | 36.99% |
| 12/30/24 – 1/19/25 | $84.50 per package | $73 per package | 15.75% |
This surcharge is applied to packages if:
- The length is greater than 96”
- The length plus girth [(width x 2) + (height x2)] combined exceeds 130”
Demand — Ground Unauthorized Package Charge
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $410 across the entire demand period, meaning this year reaches as high as a 21.95% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/30/24 – 11/24/24 | $450 per package | $410 per package | 9.76% |
| 11/25/24 – 12/29/24 | $500 per package | $410 per package | 21.95% |
| 12/30/24 – 1/19/25 | $450 per package | $410 per package | 9.76% |
Parcels that do not meet the strict requirements for both length and weight (as outlined below) will be subjected to the “over max limits” or “unauthorized parcel” fee.
FedEx defines “Unauthorized Parcels” as
- Any shipment measuring more than 108 inches in length
- A shipment measuring more than 165 inches in length and girth combined
- Any parcel weighing more than 150 lbs
Demand Surcharge
This is a mainly new surcharge added for an exclusive portion of the 2024 peak season that is applied by service type. Last year, this surcharge existed only for FedEx Ground® Economy.
| Service Type | Peak Period | 2024 Amount |
|---|---|---|
| FedEx First Overnight® FedEx Priority Overnight® FedEx Standard Overnight® FedEx 2Day® A.M FedEx 2Day® FedEx Express Saver®* | 10/28/24–11/24/24 | $1 per package |
| 11/25/24–12/29/24 | $2 per package | |
| 12/30/24–1/19/25 | $1 per package | |
| FedEx Ground residential FedEx Home Delivery residential | 10/28/24–11/24/24 | $0.30 per package |
| 11/25/24–12/29/24 | $0.55 per package | |
| 12/30/24–1/19/25 | $0.30 per package | |
| FedEx Ground® Economy | 10/28/24–11/24/24 | $1.90 per package |
| 11/25/24–12/29/24 | $3.15 per package | |
| 12/30/24–1/19/25 | $1.90 per package |
*excluding FedEx One Rate packages
Demand — Residential Delivery Charge
This FedEx charge, back again, will apply to customers who ship more than 20,000 residential packages in a calculation week. During each calculation week, the customer’s shipping volume and peaking factor will be calculated and applied during the application week, which is exactly two weeks later.
The peaking factor, reflected as a percentage increase, is determined by dividing the # of residential and FedEx Ground Economy packages shipped during a calculation week by the weekly average residential and FedEx Ground Economy packages shipped June 3, 2024-June 30, 2024 and multiplying by 100.
Once a shipper goes over a peaking factor of 105%, the demand residential delivery charge will be applied to EVERY package shipped in the application week.This is different from UPS, who only applies this surcharge to the packages over the average baseline volume.
FedEx will be implementing these increases from October 28th, 2024 to January 19th, 2025. This means the first calculation week will begin on October 7th, 2024.
| Residential Delivery Charge per Package by Peaking Factor | ||||||
|---|---|---|---|---|---|---|
| Peaking Factor | >105%-125% | >125%-150% | >150%-200% | >200%-300% | >300%-400% | >400% |
| FedEx Ground, FedEx Home Delivery Services | $1.45 | $2.10 | $2.40 | $2.95 | $5 | $7.10 |
| FedEx Express Services | $2.60 | $3.25 | $3.55 | $4.10 | $6.15 | $8.25 |
UPS 2024 Peak Season Rates
Demand Surcharge — Additional Handling
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $6.90 across the entire demand period, meaning this year reaches as high as a 44.20% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/29/24 – 11/23/24 | $7.75 per package | $6.90 per package | 12.32% |
| 11/24-24 – 12/28/24 | $9.95 per package | $6.90 per package | 44.20% |
| 12/29/24 – 1/18/25 | $7.75 per package | $6.90 per package | 12.32% |
This surcharge is applied when a package exceeds certain weight or dimensional limits or the packaging consists of anything other than a squared cardboard box and requires additional handling:
- Greater than 50 pounds
- More than 48” on the longest side or more than 30” on the second-longest side
- Encased or bound with metal, wood, plastic, cloth, etc.
- Cylindrical or round item that is not fully encased in a corrugated cardboard box
Demand Surcharge — Large Package
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $74.90 across the entire demand period, meaning this year reaches as high as a 32.18% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/29/24 – 11/23/24 | $84.75 per package | $74.90 per package | 13.15% |
| 11/24/24 – 12/28/24 | $99 per package | $74.90 per package | 32.18% |
| 12/29/24 – 1/18/25 | $84.75 per package | $74.90 per package | 13.15% |
This surcharge is applied to packages if:
- The length is greater than 96”
- The length plus girth [(width x 2) + (height x2)] combined exceeds 130”
Demand Surcharge — Over Maximum Limits
During the 2024 peak season, this surcharge will be applied in different amounts across 3 time periods. Last year this surcharge was $410 across the entire demand period, meaning this year reaches as high as a 20.73% increase from last year.
| Peak Period | 2024 Amount | 2023 Amount | % Difference |
|---|---|---|---|
| 9/29/24 – 11/23/24 | $445 per package | $410 per package | 8.54% |
| 11/24/24 – 12/28/24 | $495 per package | $410 per package | 20.73% |
| 12/29/24 – 1/18/25 | $445 per package | $410 per package | 8.54% |
Parcels that do not meet the strict requirements for both length and weight (as outlined below) will be subjected to the “over max limits” or “unauthorized parcel” fee.
UPS defines Over Maximum as
- Any shipment measuring more than 108 inches in length
- A shipment measuring more than 165 inches in length and girth combined
- Any parcel weighing more than 150 lbs
Demand Surcharge
This is a new surcharge added for an exclusive portion of the 2024 peak season that is applied by service type.
| Service Type | Peak Period | 2024 Amount |
|---|---|---|
| UPS SurePost® UPS® Ground Residential | 10/27/24–11/23/24 | $0.25 per package |
| 11/24/24–12/28/24 | $0.50 per package | |
| 12/29/24–1/18/25 | $0.25 per package | |
| UPS® Air Services | 10/27/24–11/23/24 | $1.00 per package |
| 11/24/24–12/28/24 | $2.00 per package | |
| 12/29/24–1/18/25 | $1.00 per package |
Demand Surcharge — Residential Delivery
This UPS charge will apply to customers who ship more than 20,000 residential packages during a calculation week. Similar to last year, it will vary throughout the demand period depending on how much you ship in a week over your baseline. The baseline period is your average weekly volume for the applicable service level in June 2024, specifically, June 2nd, 2024 – June 29th, 2024.
The demand residential delivery charge determined based on the above will only be applied to packages OVER the baseline, not all packages. This is different from FedEx.
UPS will be implementing these surcharges from October 27th, 2024 to January 18th, 2025.
| Residential Delivery Charge per Package by Peaking Factor | ||||||
|---|---|---|---|---|---|---|
| Percentage above volume baseline | >105%-125% | >125%-150% | >150%-200% | >200%-300% | >300%-400% | >400% |
| UPS SurePost® and UPS® Ground Residential | $1.50 | $2.05 | $2.35 | $2.85 | $4.90 | $7.05 |
| UPS® Air Residential Services | $2.65 | $3.20 | $3.50 | $4.00 | $6.05 | $8.25 |
Use Logistics Intelligence to Crush Peak Season
Navigating these carrier surcharges will be challenging and time-consuming. But with logistics intelligence, you can bypass the complexities of peak season and identify where your problem areas will be – and make the necessary adjustments.
