Small Package Changes Coming Next Week

10/28/2015 — Leah Palnik

As you may have heard, small package carriers FedEx and UPS recently announced their general rate increases for 2016. As you prepare for these adjustments in the next couple of months, it’s important to take notice of a couple changes coming before the New Year.

Beginning November 2, 2015, shippers will see a significant increase in the charge assessed for oversized packages. The FedEx Unauthorized Packages surcharge and the UPS Over Maximum Limits surcharge are jumping from $57.50 to $110. These changes come just in time for the holiday rush, where the carriers see a significant increase in shipment volume. This charge applies to: 

• Any package measuring more than 108 inches in length
• Any package measuring more than 165 inches in length and girth combined
• Any package weighing more than 150 lbs.

Another change shippers will see from FedEx and UPS before the holiday rush pertains to fuel surcharges. Effective November 2, 2015, FedEx and UPS will update their fuel surcharge tables for Ground, Express/Air, and International. This is the second time FedEx will be increasing fuel surcharge tables this year. However, UPS fuel surcharges will be higher than their competitor. Next month the fuel surcharge rate for Ground services will increase from 4.75% to 5.25%, while the fuel surcharge for Air services will increase from 3% to 4.5%. In comparison, the FedEx fuel surcharge for Ground services will jump from 3.5% to 4.25%; and from 1% to 2.75% for Express services. To view the updated tables, click the links below:

• FedEx Fuel Surcharge Table
• UPS Fuel Surcharge Table

Every year, PartnerShip conducts a full analysis of the FedEx and UPS small package rate increases to help shippers assess the true impact. Be on the lookout for this informative white paper, coming soon! In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these rate increases. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.