FedEx made news last month with their revision on Surcharge for large packages. So, what does it mean to ecommerce companies and in general, to shippers who send a number of large packages across the world on a regular basis?
FedEx has revised the Handling fee on packages that are Longer than 48 Inches, as opposed to the previous threshold of 60 inches. So, 48 inches is the new ‘large package’. The changes have been in effect from June 1, 2016. And FedEx has gone on record saying that handling charge threshold was lowered to account for the fact that eCommerce shipments are getting more dynamic and varied in size, and that these surcharge increases would help handle the increasing complexity of sorting these specific items.
The FedEx Shipping Fee Information guide says that this revision will add a $10.50 surcharge to any package that is longer than 48 inches along its longest side. So, if you are a volume shipper, if you ship large packages often, your shipping budget will be impacted greatly. A single package shipment is going to cost an additional $10.50 if it is longer than 48 inches. Industry experts think that UPS might follow suit very soon. In general, it is a good practice to optimize the size of each package. Dimensional weight pricing works on the principle of optimizing size rather than weight.
So, when it comes to shipping, size does matter. And it matters greatly when you ship large packages via FedEx. So, it makes sense to make sure your packages are made smaller in the future to avoid surcharges. In conclusion, it’s up to the seller to decide which service provider works best for their shipping. But with the revision in surcharge, make sure you also factor this new charge when you compare services and service providers.