UPS, FedEx Fees on Heavy Packages to Hit Consumers and Merchants - MSN
FedEx Corp. and United Parcel Service Inc. are escalating their war on bulky items by levying $24 fees on packages weighing more than 50 pounds.
Previously, packages weighing more than 70 pounds triggered additional handling surcharges. But the carriers are lowering their thresholds as part of an annual round of rate increases that could cause millions of packages to be hit by the fee—or force customers to change their shipping practices to avoid it.
The number of packages affected by the change could be significant. Neither company responded to questions about the estimated revenue the new fees would generate, but Shipware LLC, a shipping consulting firm, estimates that 14.5% of packages sent by its 100 largest shipper clients would be hit by the $24 fee under the new rules, up from 8.4%.
FedEx Corp. and United Parcel Service Inc. are escalating their war on bulky items by levying $24 fees on packages weighing more than 50 pounds.
Previously, packages weighing more than 70 pounds triggered additional handling surcharges. But the carriers are lowering their thresholds as part of an annual round of rate increases that could cause millions of packages to be hit by the fee—or force customers to change their shipping practices to avoid it.
The number of packages affected by the change could be significant. Neither company responded to questions about the estimated revenue the new fees would generate, but Shipware LLC, a shipping consulting firm, estimates that 14.5% of packages sent by its 100 largest shipper clients would be hit by the $24 fee under the new rules, up from 8.4%.