UPS lowers residential surcharges; FedEx ends them entirely
For decades, an immutable law of business has been that whenever FedEx Corp. changed its pricing or related terms and conditions, rival UPS Inc. would soon follow suit. Or vice versa. However, a few changes to peak-season delivery surcharges that the two carriers announced within a week of each other signal that the long-held duopoly bond continues to fray.
There are still similarities: Both carriers will reduce their levies to $3 per package to cover the “additional handling” of shipments that are difficult to manage. UPS will reduce its per-package charge on oversize shipments to $31.45 per piece from $50, not far from FedEx’s revised charge to $30 from $52.50. The effective date of the new UPS levies is Jan. 17, just one day before the revised FedEx surcharges kick in. All the revised charges will stay in effect until further notice, both carriers have said.
But there are differences. For example, UPS, which disclosed its surcharges in a website post yesterday, will maintain its U.S. ground residential surcharge but cut it to 30 cents per piece from surcharge tiers of $1 to $3 per package that expire Jan. 16. FedEx’s residential delivery surcharges, which ranged from $1 to $5 a parcel and were imposed Nov. 2, will disappear entirely on Jan. 17.
