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UPS and FedEx Demand Surcharges Guide for the 2024 Peak Season
Compare 2024 peak season FedEx and UPS demand surcharges and learn how 3PL Center can help mitigate these costs.
Published on September 6, 2024
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Domestic UPS and FedEx Demand Surcharges Overview
| Surcharge Type | FedEx | UPS |
| Additional Handling Surcharge | $7.75 to $10 per package (Sept. 30, 2024 – Jan. 19, 2025) | $3.50 to $9.95 per package (Jan. 14, 2024 – Jan. 18, 2025, varying by periods) |
| Oversize Charge | $84.50 to $100 per package (Sept. 30, 2024 – Jan. 19, 2025) | $40.00 to $99.00 per package (Jan. 14, 2024 – Jan. 18, 2025, varying by periods) |
| Ground Unauthorized Package Charge | $450 to $500 per package (Sept. 30, 2024 – Jan. 19, 2025) | $445 to $495 per package (Sept. 29, 2024 – Jan. 18, 2025) |
| Demand Surcharge for Express Services | $1 to $2 per package (Oct. 28, 2024 – Jan. 19, 2025) | $1.00 to $8.25 per package (Oct. 27, 2024 – Jan. 18, 2025, depending on volume percentage above baseline) |
| Residential Delivery Surcharge | $1.45 to $8.25 per package (Oct. 28, 2024 – Jan. 19, 2025) | $0.25 to $8.25 per package (Oct. 27, 2024 – Jan. 18, 2025, depending on volume percentage above baseline) |
International FedEx and UPS Demand Surcharges Overview
FedEx U.S. Export and Import Demand Surcharges:
Exports (Effective Through April 28, 2024): Surcharges range from $0.10 to $0.35 per pound for parcels and freight, with minimum charges per shipment ranging from $1.00 to $20.00 depending on the zone.
Imports (Effective August 5, 2024): Most zones have no surcharge, while Zones F and N incur charges of $0.25 per pound for parcels and freight, with minimums of $1.00 per shipment for parcels and $0.50 per shipment for freight.
UPS International Demand Surcharges:
Shipments from China, Hong Kong SAR, and Macau SAR to the U.S.: $1.22 per lb. for standard services and $1.54 per lb. for freight services (effective Dec. 25, 2022, until further notice).
Shipments from Various Asia Origins to the U.S. (e.g., Australia, New Zealand): $0.00 per lb. (effective June 30, 2024, until further notice).
Shipments from Europe, India, and U.S. to Other Destinations: $0.00 per lb. for all services (effective until further notice).
Key Differences and Similarities
Peak Season Timing: Both carriers have similar surcharge periods, although UPS’s peak period starts slightly earlier (Sept. 29, 2024, compared to FedEx’s Sept. 30, 2024).
Surcharge Amounts: FedEx demand surcharges for additional handling and oversized packages are generally higher than UPS demand surcharges, while UPS offers a wider range of surcharge rates based on volume percentages and service levels.
International Shipments: UPS has more exemptions from surcharges for shipments from certain origins (e.g., Asia, Europe) to the U.S. and other destinations, while FedEx applies specific rates depending on zones.
Curious how holiday shipping costs compare? Check out our side-by-side comparison of peak season surcharges from USPS, UPS, and FedEx to find the best option for your shipping needs this season.
How 3PL Center Can Help You Navigate Peak Season Surcharges
Navigating the complex landscape of peak season surcharges can be overwhelming. This is where 3PL Center comes in to help. By partnering with us, you can:Benefit from Advanced Tracking Systems: Our Warehouse Management System (WMS) includes robust tracking capabilities that allow you to monitor your shipments in real-time, ensuring transparency and timely delivery.
Utilize Strategic Warehouse Locations: With multiple warehouse locations nationwide, 3PL Center reduces transit times and shipping costs, which is particularly valuable during high-demand periods.
Implement Customized Logistics Solutions: We offer tailored logistics strategies, from optimal packaging to selecting the most cost-effective shipping methods, all designed to minimize or avoid surcharges and ensure effective demand fulfillment throughout the peak season
Preparing for Peak Season Success
As the 2024 peak season draws near, understanding and managing demand surcharges from FedEx and UPS is essential for maintaining control over your shipping expenses. With both carriers implementing surcharges that vary by service type, weight, and destination, it’s important to have a strategy in place. By partnering with 3PL Center, you can access exclusive discounted rates, advanced logistics solutions, and expert guidance to help you navigate these surcharges and optimize your demand fulfillment strategy. Contact us today to learn how we can help you optimize your logistics and ensure a successful peak season for your business.FedEx vs. UPS Demand Surcharges FAQs
What are demand surcharges, and why do carriers apply them during the peak season?
Demand surcharges are additional fees applied by carriers like FedEx and UPS during high-demand periods to manage increased shipment volumes and offset additional operational costs.How can I determine which carrier’s surcharges will be less expensive for my business?
Compare the specific surcharges for each carrier based on your shipment characteristics, such as weight, size, destination, and service type. It may also help to analyze your shipping patterns to determine which carrier offers the most cost-effective option during peak periods.Are there specific types of shipments that are exempt from demand surcharges?
Certain services and regions may be exempt from demand surcharges depending on the carrier. For example, UPS does not apply demand surcharges for shipments from certain Asia origins or Europe to the U.S., while FedEx may apply surcharges based on specific zones.What are some strategies to minimize demand surcharges during peak season?
Businesses can mitigate demand surcharges by encouraging early shopping, utilizing regional fulfillment centers to reduce shipping distances, choosing cost-effective shipping methods, and partnering with a 3PL provider to optimize logistics and reduce costs.On this page