FedEx Will Shun Most Home Holiday Fees, Unlike UPS - Bloomberg
FedEx Corp. will forgo most holiday surcharges on home deliveries this year, drawing a contrast with plans for stepped-up fees at United Parcel Service Inc. amid a surge in online shopping.
Additional holiday charges will only be applied to packages that are big or bulky enough to require special handling, FedEx said in a statement Thursday. UPS’s extra levies will bump up the cost of residential deliveries by about 3 percent.
The divergent fee structures represent sharply different approaches at the couriers, which have been contending with a rush of home deliveries as e-commerce continues to expand. FedEx may be able to woo small businesses or individual shippers away from UPS, where they’d have to pay the extra fee, said Kevin Sterling, a Seaport Global Holdings analyst.
- Package-delivery giants plan differing approaches to pricing
- Jump in online shopping fuels shipment of more oversized goods
FedEx Corp. will forgo most holiday surcharges on home deliveries this year, drawing a contrast with plans for stepped-up fees at United Parcel Service Inc. amid a surge in online shopping.
Additional holiday charges will only be applied to packages that are big or bulky enough to require special handling, FedEx said in a statement Thursday. UPS’s extra levies will bump up the cost of residential deliveries by about 3 percent.
The divergent fee structures represent sharply different approaches at the couriers, which have been contending with a rush of home deliveries as e-commerce continues to expand. FedEx may be able to woo small businesses or individual shippers away from UPS, where they’d have to pay the extra fee, said Kevin Sterling, a Seaport Global Holdings analyst.