Understanding the FedEx Additional Handling Surcharge for 2022

If you are a small business that ships bulky or heavy items, the FedEx Additional Handling Surcharge may be a significant cost to consider in your budget for the coming year. In this article, we will take a closer look at this surcharge and provide insights into how to avoid or mitigate its impact on your business. We will also delve into the reasons why FedEx introduced this surcharge, as well as discuss its potential effects on smaller businesses in the shipping industry.

What is the FedEx Additional Handling Surcharge?

The FedEx Additional Handling Surcharge is a fee charged by FedEx to handle packages that require special attention due to their size, weight, or shape. This includes packages that are oversized, heavy (weighing more than 70 pounds), or have difficult-to-handle contents, such as fragile or valuable items. The surcharge is assessed in addition to any other fees associated with the shipment, such as the transportation fees and fuel surcharges.

It is important to note that the FedEx Additional Handling Surcharge can significantly increase the cost of shipping a package. To avoid this surcharge, it is recommended to carefully measure and weigh your package before shipping and choose appropriate packaging materials to ensure the contents are protected during transit. Additionally, consider using FedEx’s packaging services, which can provide custom packaging solutions for items that require special handling.

How does the FedEx Additional Handling Surcharge work?

The FedEx Additional Handling Surcharge is automatically applied to any package that meets the criteria for being difficult to handle. This means that even if the package is properly labeled and packaged, the surcharge will still be added to the total shipping costs. The surcharge is per package, so businesses that ship multiple oversized or heavy items may incur significant additional costs.

The criteria for a package to be considered difficult to handle include any package that weighs over 70 pounds, has a length greater than 48 inches, or a width or height greater than 30 inches. Additionally, packages that are not fully encased in cardboard or have protruding edges or handles may also be subject to the surcharge.

It is important for businesses to be aware of the FedEx Additional Handling Surcharge and take it into account when calculating shipping costs. To avoid the surcharge, businesses can consider using smaller packaging or breaking up larger shipments into multiple smaller packages. Additionally, properly securing and encasing packages can help prevent damage during shipping and reduce the likelihood of being subject to the surcharge.

Why has FedEx introduced the Additional Handling Surcharge?

FedEx has introduced the Additional Handling Surcharge to offset the additional costs involved in handling and transporting packages that require special attention due to their size, weight, or contents. These packages often require extra time and effort from FedEx employees, which is why the surcharge is necessary to cover these costs.

Additionally, the surcharge is also aimed at encouraging customers to properly package their shipments to avoid damages during transit. By imposing an extra fee on packages that require special handling, FedEx hopes to incentivize customers to take extra care in packaging their items, ultimately reducing the number of damaged packages and improving overall customer satisfaction.

Who is affected by the FedEx Additional Handling Surcharge?

Small businesses that frequently ship bulky or heavy items are most affected by the FedEx Additional Handling Surcharge. However, larger businesses may also feel the impact of this surcharge, especially if they are shipping large numbers of oversized or heavy items.

In addition to businesses, individuals who frequently ship large or heavy items may also be affected by the FedEx Additional Handling Surcharge. This can include individuals who sell items online and need to ship them to customers, or individuals who are moving and need to ship their belongings.

It’s important to note that the FedEx Additional Handling Surcharge is not the only surcharge that businesses and individuals may face when shipping items. Other surcharges, such as fuel surcharges and residential delivery surcharges, can also add to the cost of shipping. It’s important to carefully review all shipping fees and surcharges before choosing a shipping provider.

How much is the FedEx Additional Handling Surcharge for 2022?

The FedEx Additional Handling Surcharge varies depending on the size and weight of the package. As of 2022, the surcharge is $17.50 per package for any package with dimensions exceeding 48 inches in length, 30 inches in width, or 30 inches in height. Additionally, the surcharge is $1.05 per pound for any package weighing over 70 pounds. The surcharge is subject to change annually, so it’s essential to keep up-to-date with the current rates.

It’s important to note that the FedEx Additional Handling Surcharge is in addition to the regular shipping fees. This surcharge is applied to packages that require additional handling due to their size, weight, or packaging. Examples of packages that may incur this surcharge include those that are not fully encased in cardboard, those with irregular shapes, or those that require special handling due to fragility or hazardous materials. It’s always a good idea to check with FedEx or your shipping provider to determine if your package will be subject to this surcharge.

How to avoid or reduce the FedEx Additional Handling Surcharge?

One way to avoid or reduce the FedEx Additional Handling Surcharge is to ensure that the package is properly labeled and packaged for shipment. This includes using adequate padding and packing materials to protect fragile items, using sturdy boxes that can support the weight of the item, and ensuring that all necessary documentation is included. Additionally, businesses can explore other shipping options or work with a logistics company to find ways to optimize their shipping processes and reduce the number of packages that require special handling.

Another way to avoid the FedEx Additional Handling Surcharge is to use FedEx’s own packaging options, such as their FedEx Express boxes and envelopes. These are designed to meet FedEx’s packaging standards and can help ensure that your package is not subject to additional handling fees. Additionally, businesses can consider using FedEx’s Hold at Location service, which allows customers to pick up their packages at a FedEx location instead of having them delivered to their doorstep. This can help reduce the risk of damage during delivery and potentially avoid the need for special handling.

It’s also important to note that the FedEx Additional Handling Surcharge is not the only surcharge that businesses may encounter when shipping with FedEx. Other surcharges, such as the Oversize Charge and the Residential Delivery Charge, can also add to the cost of shipping. To avoid these surcharges, businesses can consider optimizing their packaging and shipping processes, as well as exploring alternative shipping options that may be more cost-effective for their specific needs.

Tips for managing and budgeting for the FedEx Additional Handling Surcharge.

One way to manage and budget for the FedEx Additional Handling Surcharge is to anticipate the surcharge as a part of the total shipping costs. Businesses should include the surcharge in their budgeting and pricing strategies to ensure that it is factored into the overall cost of goods sold. Additionally, businesses can negotiate with FedEx to try and minimize the impact of the surcharge or explore other carrier options that may offer more competitive pricing.

The impact of the FedEx Additional Handling Surcharge on small businesses.

The FedEx Additional Handling Surcharge may have a significant impact on small businesses that rely heavily on shipping heavy or bulky items. The surcharge can add up quickly, cutting into profits and potentially pricing small businesses out of the market. Small businesses must carefully manage shipping costs and explore alternative shipping options to mitigate the impact of this surcharge.

How to negotiate with FedEx regarding the Additional Handling Surcharge.

Negotiating with FedEx regarding the Additional Handling Surcharge may be challenging, but not impossible. Businesses can try negotiating and ask for a discount or waiver on the surcharge. It’s essential to be respectful, clear, and concise in your negotiations and provide data to support your case. Working with a logistics company may also help businesses to negotiate more effective contracts that minimize the impact of the surcharge.

Alternatives to using FedEx for shipping bulky or heavy items.

Businesses can explore alternative carriers and shipping options to minimize the impact of the FedEx Additional Handling Surcharge. Other carriers may have lower surcharges or offer more competitive pricing for oversized or heavy items. Alternatively, businesses may also explore shipping methods such as freight or ground transportation that may be more cost-effective for larger or bulkier items.

Comparing other carrier’s handling surcharges with that of FedEx.

Besides FedEx, other carriers also have their handling surcharges, though the rates may vary. For example, UPS has a similar surcharge for packages weighing more than 70 pounds. DHL also has a handling surcharge for packages with abnormal dimensions. It’s essential to compare these surcharges to determine which carrier is the most cost-effective for your specific shipping needs.

Frequently asked questions about the FedEx Additional Handling Surcharge.

Q: Can I avoid the FedEx Additional Handling Surcharge?
A: You can avoid the FedEx Additional Handling Surcharge by ensuring that your package is properly labeled and packaged for shipment. Additionally, exploring other shipping options may help reduce the number of packages that require special handling.Q: How often are the rates for the FedEx Additional Handling Surcharge updated?
A: The rates for the FedEx Additional Handling Surcharge are updated annually, so it’s essential to keep up-to-date with the current rates.Q: Is the Additional Handling Surcharge waived for high-volume shippers?
A: FedEx may offer volume-based discounts or waivers for high-volume shippers, but this is subject to negotiations and specific agreements.Q: Can I negotiate with FedEx to waive or reduce the Additional Handling Surcharge?
A: While it may be challenging, businesses can negotiate with FedEx to try and reduce the impact of the surcharge. It’s essential to be respectful, clear, and concise in your negotiations and provide data to support your case.

The role of packaging and labeling in avoiding the FedEx Additional Handling Surcharge.

The role of packaging and labeling cannot be overstated in avoiding the FedEx Additional Handling Surcharge. Proper packaging and labeling can minimize the risk of damage to your package during transport, improve efficiency and speed up processing times, and reduce the likelihood of additional fees such as the handling surcharge. Businesses must package their items correctly and follow proper labeling protocols to minimize the impact of this surcharge.

The future of handling surcharges in shipping and logistics industry

The introduction of the FedEx Additional Handling Surcharge is only the latest trend in the shipping industry. As logistics and shipping companies continue to cope with the e-commerce boom’s effects, we may see additional surcharges, fees, or pricing models designed to rebalance the costs of shipping. Businesses must stay informed and adapt to these changes to stay competitive.