How to Avoid Shipping Surcharges with UPS, FedEx, and USPS

Navigating shipping surcharges can be tricky, but with the right knowledge and practices, you can avoid unnecessary fees from carriers like UPS, FedEx, and USPS. Here’s how you can keep shipping costs down by entering accurate shipment details and understanding the criteria for surcharges across different carriers.

What are Shipping Surcharges?

Shipping surcharges are additional fees imposed by carriers to cover the costs associated with the delivery challenges certain shipments may present. These fees are typically not included in the base shipping rate and can significantly increase the overall cost of shipping. Understanding these surcharges is key to optimizing your shipping strategy and keeping costs manageable.

Common Shipping Surcharges Include:

Fuel Surcharges: Adjusted monthly or weekly based on the national average fuel prices, affecting both domestic and international shipments.

Residential Surcharges: Applied when shipping to a home or private residence, including home-based businesses.

Oversized Surcharges: Incurred when shipping items that exceed the carrier’s maximum size or weight limits.

Additional Handling Surcharges: Required for packages that need special handling due to their shape, packaging, or size.

Remote Area Surcharges: Applied for deliveries to locations that are less accessible and therefore more expensive to service.

Demand Surcharges: These surcharges can be applied during peak shipping periods when the volume of shipments and demand fulfillment significantly exceeds normal levels, often seen during holiday seasons or special sales events. Learn more about demand surcharges for 2024.

By being aware of these surcharges and how they are applied, you can better plan your shipping processes to minimize additional costs.

Dimensional Weight

Dimensional weight, or DIM weight, is a pricing technique used by shipping carriers to calculate shipping fees based on a package’s volume (length, width, height) rather than its actual weight. It applies to packages with a large size-to-weight ratio, which can impact shipping costs if underestimated.

Specific Carrier Requirements:

How to Avoid Shipping Surcharges or Reduce Fees:

Accurate Measurements: Always measure the dimensions of your package precisely. Use the carrier’s online tools (like UPS’s WorldShip or FedEx’s Ship Manager®) to input these dimensions and calculate the dimensional weight yourself, ensuring it aligns with what the carrier will calculate.

Optimize Packaging: Reduce the size of the packaging to the smallest possible while ensuring the contents are still protected. This minimizes the volume of the package, potentially lowering the dimensional weight.

Understand Pricing: Familiarize yourself with how your chosen carrier calculates shipping costs. Though you cannot choose between actual weight and dimensional weight directly, understanding both measurements can help you optimize packaging and possibly avoid higher charges based on dimensional weight if the actual weight is less.

Additional Handling Charges

Additional handling charges apply to packages that require special handling due to their size, weight, or shape. This includes packages that exceed standard dimensions, are irregularly shaped, or are not fully encased in corrugated cardboard. These charges are incurred to cover the extra effort and resources needed to safely handle and deliver non-standard shipments.

Specific Carrier Requirements:

UPS: Charges are applied for packages with the longest side over 48 inches, the second-longest side over 30 inches, or those weighing over 50 pounds.

FedEx: Additional handling is necessary for packages that exceed 48 inches in length, are not fully encased, or use packaging made of metal or wood.

USPS: Fees are less common but are charged for packages that are cylindrical or not rectangular, which cannot be sorted using standard machines.

How to Avoid Shipping Surcharges or Reduce Fees:

Proper Packaging: Ensure that all packages are properly boxed in standard rectangular packaging. Avoid using unusual shapes or materials that do not conform to standard sorting machinery.

Correct Dimensions: Always input accurate dimensions when preparing a shipment. This ensures you are aware of any additional fees that might apply.

Split Shipments: If possible, split larger shipments into smaller, standard-sized packages to avoid extra handling charges from carriers like UPS and FedEx.

Planning your shipping schedule around the carriers’ holiday shipping deadlines can also play a crucial role in avoiding surcharges, especially during the busy end-of-year season when surcharges peak. Learn more about effectively planning with UPS holiday shipping deadlines and USPS holiday schedule.

Avoiding Residential Surcharges

Residential surcharges are additional fees applied when shipping carriers deliver packages to a home or private residence, including home-based businesses. These fees cover the extra cost of delivery to locations that may not be as accessible as commercial addresses. These surcharges can significantly increase the cost of shipping, especially for businesses that frequently ship to residential addresses. Here’s how you can manage or avoid these fees with major carriers:

Specific Carrier Requirements:

UPS: Uses automated system to determine whether an address is residential. Accurate address classification impacts whether residential surcharges are applied.

FedEx: Uses automated system to determine whether an address is residential. Accurate address classification impacts whether residential surcharges are applied.

USPS: Does not typically charge a residential surcharge as they deliver to both residential and commercial addresses without differentiation.

How to Avoid Shipping Surcharges or Reduce Fees:

Verify Address Classification: Use UPS and FedEx’s online tools to check and correct address classifications before shipping to ensure the address is listed correctly and avoid unnecessary surcharges.

Ship to Commercial Addresses: Encourage customers to have items shipped to their workplace or a business address where possible. This not only avoids residential surcharges but may also expedite the delivery process.

Utilize Access Points: Both carriers offer an option to ship to a nearby access point (like a local store or UPS/FedEx office) or use local pickup points like UPS Access Point locations or FedEx Hold at Location, where customers can pick up their packages. This avoids residential surcharges and often provides customers with flexible pickup times.

Incorrect Weight

Incorrect weight surcharges are applied when there is a discrepancy between the reported weight of a package and its actual weight. This fee compensates for the difference in shipping costs that arises from the incorrect declaration.

Specific Carrier Requirements:

All Carriers: Charges are levied if the actual weight of the package is higher than the reported weight when the package is weighed by the carrier.

How to Avoid Shipping Surcharges or Reduce Fees:

Accurate Weighing: Use a reliable scale to weigh your packages and always round up to the nearest pound to ensure accuracy.

Regular Scale Calibration: Maintain and calibrate your scales regularly to avoid discrepancies in package weight.

Audit Shipments: Periodically audit your shipping process and weight reports to ensure weights are consistently reported accurately across all shipments.

Over Maximum Limits

Over maximum limits fees are applied to packages that exceed the carrier’s established maximum dimensions or weight limits for standard shipping services, required special handling and additional resources.

Specific Carrier Requirements:

UPS: The maximum size is a combined length and girth of 165 inches and a maximum weight of 150 pounds.

FedEx: Packages may not exceed 108 inches in length, and the length and girth combined cannot exceed 165 inches.

USPS: The maximum size for most mail services is a combined length and girth of 130 inches.

How to Avoid Shipping Surcharges or Reduce Fees:

Package Size Optimization: Design your packages to stay within the maximum allowed dimensions and weight by using packing materials that add minimal bulk and weight.

Split Shipments: If possible, divide your shipments into multiple smaller packages to avoid exceeding size and weight restrictions.

Use Freight Services: For items that naturally exceed these limits, consider using freight services like LTL shipping that are tailored for larger shipments.

Handling Large Package Surcharges

Large package surcharges are assessed on shipments that exceed standard size dimensions, which require special handling and increase transportation costs.

Specific Carrier Requirements:

UPS: A package is considered “Large” if its length plus girth exceeds 130 inches or if its length exceeds 96 inches, subject to a minimum billable weight of 90 pounds.

FedEx: A Large Package Surcharge is applied to any package with a length over 96 inches or when the length plus girth exceeds 130 inches. “Oversize Charge” applies for FedEx Ground if any dimension exceeds 48 inches.

USPS: Generally does not apply a large package surcharge, but size restrictions still apply.

For more information on shipping oversized items with UPS, check out our guide on Shipping Oversized Items with UPS: Costs, Surcharges, and Smart Strategies.

How to Avoid Shipping Surcharges or Reduce Fees:

Pre-Measure All Dimensions: Ensure that all package dimensions are measured before shipping and compare them against carrier limits to anticipate any surcharges.

Custom Packaging Solutions: Use custom packaging solutions that fit your products snugly without adding unnecessary size or girth.

Consult Carrier Guidelines: Always check the latest carrier guidelines for dimension limits and packing requirements to mitigate the risk of surcharges.

For more information about shipping oversized items, check out our guide to choosing the best carrier for oversized shipments.

3PL Center: Advanced Solutions to Avoid Shipping Surcharges

At 3PL Center, we leverage cutting-edge technology and strategic logistics to mitigate common shipping surcharges, providing cost-effective and efficient solutions for our clients.

Efficient Warehouse Management System (WMS): Our WMS offers real-time shipment tracking from carriers, giving you immediate updates and full visibility, which is crucial for managing timelines and avoiding delays that could lead to surcharges.

Accurate Address Verification: Our address verification tool ensures every shipment is accurately labeled with its destination. This reduces the risk of surcharges due to incorrect address classification or delivery delays.

Strategic Warehouse Locations: Our strategically placed warehouses across the nation enable us to offer nationwide 2-day shipping, reducing the distance shipments must travel and lowering the likelihood of late delivery surcharges.

Rate Shopping Capabilities: Choose between our discounted shipping rates or your own, ensuring you always receive the most cost-effective shipping options. This flexibility helps avoid overpaying for shipping and reduces overall expenditure on surcharges.

Expert Handling of Oversized Items: We specialize in shipping oversized items, effectively managing the complexities and additional costs associated with large item transportation.

Key Steps to Effectively Reduce or Avoid Shipping Surcharges

Navigating shipping surcharges doesn’t have to be a complex puzzle. By understanding the common surcharges imposed by carriers like UPS, FedEx, and USPS and implementing strategic measures, you can significantly reduce unnecessary costs. Accurate measurements, appropriate packaging, and utilizing advanced tools like those provided by 3PL Center can help you avoid these extra fees. Partnering with 3PL Center offers you access to an array of services designed to streamline your shipping processes. From our real-time tracking and address verification tools to strategic warehouse placements, we are equipped to handle your shipping needs efficiently. By choosing 3PL Center, you ensure not only cost savings on shipping but also improved delivery efficiency and customer satisfaction. Embrace the benefits of a logistics partner that understands how to navigate the complexities of shipping surcharges. Contact 3PL Center today to learn more about how our services can optimize your shipping strategy and help you keep surcharges to a minimum.

Avoid Shipping Surcharges FAQs

What Happens If I Underestimate the Weight or Size of My Package?

Underestimating the weight or size of your package can lead to additional surcharges and delays. Most carriers will reweigh and remeasure packages at their sorting facilities. If discrepancies are found, correction fees will be applied, and your account may be charged the difference in postage. It’s important to provide accurate information to avoid these penalties and ensure timely delivery.

How Can I Dispute a Shipping Surcharge If I Believe It Was Incorrectly Applied?

If you believe a shipping surcharge was applied in error, you can dispute it by contacting the carrier directly. Provide all relevant documentation, such as the shipping receipt, proof of package dimensions and weight, and any correspondence related to the shipment. Carriers typically have a process for reviewing disputes, and if your claim is validated, the surcharge may be refunded.

Are There Any Tools or Services That Help Monitor and Manage Shipping Costs Effectively?

Yes, there are several tools and services designed to help businesses monitor and manage shipping costs. These include shipping and logistics software that integrates with carrier systems to provide real-time tracking, cost analysis, and efficient rate comparison. Additionally, partnering with a logistics expert like 3PL Center can offer access to specialized tools for optimizing shipping strategies and reducing overall expenses, including surcharges.