2023 Peak Season/Demand Surcharge Guide [FedEx & UPS]

Please note: This article focuses on Ground and Express charges. For a full breakdown of international and other charges, see the FedEx & UPS websites.

Christmas in…September? The carriers are making fast moves this year with their early Peak Season, now “Demand,” surcharge release. Some charges are coming as early as October 1, 2023.

If you want to end Q4 with a bang, here’s everything you need to know about these surcharges.

First, an overview. Here’s a side-by-side look at FedEx vs. UPS additional handling/large package charges:

FedEx and UPS have different methods of calculating your average volume, but they both are using tiered pricing to calculate Residential Delivery charges.

Now, for the carrier specifics.

FedEx 2023 Peak Season Rates

[October 2, 2023 – January 14, 2023]

Additional Handling

FedEx: $6.95, a 6% increase from last year’s $6.55.

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 that is not fully encased in a corrugated cardboard shipping container

Oversize Charge

FedEx: $73, a 6% increase from last year’s $68.75.

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”

Ground Unauthorized Package

FedEx: $410, an 8% increase from last year’s $380.

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.

[October 30, 2023 – January 14, 2023]

Residential Surcharges

This FedEx charge will adjust dynamically every week. During each calculation week, a customer’s shipping volume and peaking factor will be calculated based on the tier below.

Similar to UPS, customers who ship more that 20,000 residential packages during the “calculation week” will be affected.

FedEx will be implementing these increases effective October 30, 2023, through January 14, 2024:

FedEx Ground Economy Surcharges

If you’re using this contract service, these apply to you, regardless of shipping volume.

UPS 2023 Peak Season Rates

[October 1, 2023 – January 13, 2023]

Additional Handling

UPS: $6.90, a 6% increase from last year’s $6.50.

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 shipping container

Large Packages

UPS: $74.90, a 7% increase from last year’s $70.

This surcharge is applied to large packages if the length plus girth – length +[(width x 2) + (height x2)] – combined exceeds 103 to 165 inches or the package length is 96 to 108 inches.

Over Maximum Limits

UPS: $410.00 per package over maximum limits, a 2.5% increase from last year. This fee does not apply from January 15, 2023-September 30, 2023.

This surcharge is applied if packages are over:

• 150 pounds
• 165 inches in length and girth combined
• 108 inches in length

[October 29, 2023 – January 13, 2023]

Residential Surcharges

Both carriers are sticking with the approach to measure shippers’ volumes and charge based on their peaking factor tiers. UPS peak surcharges will apply to customers who shipped over 20,000 packages during any week following October 2022.

UPS will be implementing these increases effective October 29, 2023, through January 13, 2024:

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.

Try a free demo today.