1. FedEx Announces Peak Season “Demand” Surcharges
FedEx has announced their Peak Season Surcharges for 2023, and followed the lead of rival UPS by rebranding “Peak” as “Demand” Surcharges. According to FedEx, Demand Surcharges are “determined for each market based on regular assessments of shipment volume and capacity within our network to accommodate.”
Notable surcharges include:
- Additional Handling: $6.95 (up from $6.55 during peak 2 last year)
- Oversize: $73 (up from $68.75 during peak 2 last year)
- Ground Unauthorized Package: $410 (up from $380 during peak 2 last year)
The general FedEx Ground® Economy Surcharge has risen too, and is broken out into three phases:
- $1.60 (Oct. 30, 2023–Nov. 26, 2023)
- $2.60 (Nov. 27, 2023–Dec. 10, 2023)
- $1.60 (Dec. 11, 2023–Jan. 14, 2024)
These are all a .10 increase from last year.
2. FedEx Previews 5.9% GRI
In the same day they unveiled their Demand Surcharges, FedEx also announced that their 2024 GRI for Express and Ground would be an average of 5.9%. The average rate of increase was all that was announced, and September 7 was set as the date for the release of detailed rate increase information.
The 5.9% average is 1% lower than 2023’s GRI.
In the past, FedEx and UPS typically match each other’s average increase rate. UPS might want to implement high rate increases to account for the $30 billion labor agreement they’ve signed with the Teamsters, but with FedEx announcing 5.9%, they might have to match them in order to stay competitively priced.
3. Better Trucks Expands Service, Partners with GLS
Regional carrier Better Trucks is expanding their service areas through network expansion and a strategic partnership with GLS. Better Trucks, who has primarily served the Midwest and select regions in the South, is launching operations in major Texas markets, including Dallas-Fort Worth, Austin, Houston, and San Antonio.
Additionally, they’re partnering with GLS to “hand off” packages being sent to GLS’ coverage area, which includes eight states in the western U.S. GLS customers now gain access to Better Trucks’ network as well.
The combined coverage area services 32 markets in 20 states. Deliveries can reach 126 million people, 40% of U.S. households.