FedEx Flexes Price Power With Surcharges Extending Past January
- Courier cites ‘extremely high demand’ and increased costs
- UPS is likely to make a similar move, shipping consultant says
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FedEx Corp. is indefinitely extending some surcharges amid soaring package volume and rising delivery costs, pushing its pricing power further into 2021.
While the added fees will be lower than during the year-end holiday rush, the extension breaks with the typical practice in which the extra charges would lapse after the so-called peak season. FedEx and United Parcel Service Inc. have been handling record volume as the coronavirus pandemic spurs a surge in demand for home delivery of goods ordered online.