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FedEx Joins Rush to Add Fees as Holiday Delivery Surge Looms

  • Surcharges will range from $1 to $5 a parcel, courier says
  • Retailers face cost crunch after similar moves by UPS, USPS
Photographer: Michael Nagle/Bloomberg
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FedEx Corp. is joining a rush to apply extra holiday fees on high-volume shippers as couriers brace for a new jump in residential deliveries during the year-end peak season.

Surcharges on regular shipments to homes will range from $1 to $5 from Nov. 2 to Jan. 17, FedEx said on its website Tuesday. That marks the first time since 2016 that the company has applied special peak-season fees, and the move follows similar efforts by United Parcel Service Inc. and the U.S. Postal Service.

“As the impact of the virus continues to generate a surge in residential deliveries, we are entering this holiday peak season with extremely high demand for capacity and are experiencing increased operating costs across our network,” FedEx said. “We anticipate residential volume to continue to surge into the new year.”