Practical Ecommerce

38 Fees and Surcharges from FedEx and UPS

When comparing shipping rates from FedEx and UPS, don’t forget to include fees and surcharges. Each shipper has an extensive list of additional costs. So rather than just comparing ‘standard rates,’ determine your shipping needs and then calculate the fees.

Here is a list of 2012 fees and surcharges from FedEx and UPS. For complete UPS rate information, access the Service Guide, as well as the rate changes for 2012. For complete FedEx rate information, access FedEx Rates, as well as the rate changes for 2012.

FedEx Fees and Surcharges

Additional Handling Surcharge. A charge will be assessed for any package that requires special handling, as determined by FedEx. $8.50 per package.

Address Correction. If a recipient’s address on an airbill, air waybill or shipping label is incomplete or incorrect, FedEx may attempt to find the correct address and complete the delivery. FedEx Express U.S. freight services: $60 per correction. FedEx Ground: $11.

Advancement Fee. FedEx collects a fee when it prepays import customs and duties and behalf of its customers. For FedEx Express U.S. import package and freight shipments, the Advancement Fee is the greater of 2 percent of the total duties and taxes advanced or $6.50 per shipment.

Dangerous Goods. For FedEx Express U.S. package shipments containing accessible dangerous goods, the surcharge is $75 per package. For shipments containing inaccessible dangerous goods, the surcharge is $37.50 per package.

Declared Value. The charge for Declared Value — which fixes FedEx’s maximum shipping liability, as set by the customer — is $0.80 per $100 of value. The minimum charge is $2.40.

Delivery Area Surcharge. For applicable FedEx Express U.S. package services and FedEx Ground services, a delivery area surcharge applies to shipments destined to select ZIP codes. The surcharge for commercial and extended commercial shipments is $2 per package. For FedEx Express and FedEx Ground services, the surcharge for residential shipments is $3 per package and $2.75 for FedEx Home Delivery shipments. The surcharge for extended residential shipments is $3.25 per package.

Delivery Reattempt. For FedEx Express U.S. freight services, shipper or recipient arranged delivery reattempts are subject to delivery reattempt charges: the greater of $48 per shipment or $0.0513 per lb.

Delivery Signature Options. For FedEx Express U.S. package services and FedEx Ground services, the charge for Indirect Signature Required (from someone other than the recipient, such as a neighbor) is $2 per package. Direct Signature Required is $3.50 per package. Adult Signature Required is $4.50 per package.

Disbursement Fee. For FedEx Ground shipments, the Disbursement Fee — related to paying amounts on behalf of its customers — is the greater of 2 percent of the total duties and taxes advanced or $6.50 per shipment.

Extra Service Charge. For FedEx Express U.S. freight services and FedEx International Premium service, an extra service charge applies when the shipper or recipient requests a special handling service beyond the standard freight pickup and delivery features: the greater of $66 per shipment or $66 per handler hour.

FedEx Ground C.O.D. For FedEx Ground and FedEx International Ground shipments, a charge applies when you direct FedEx to collect payment from your recipient. If you select regular or guaranteed funds C.O.D. — “cash on delivery” — the charge is $11 per package. If you select currency C.O.D., the charge is $11 per package plus an additional charge based on your shipment’s destination.

FedEx Ground Electronic C.O.D. (E.C.O.D.) For FedEx Ground and FedEx International Ground shipments, a charge applies when you direct FedEx to collect payment from your recipient and deposit it directly into your bank account, plus there is an additional weekly service charge: $11 per package. The weekly service charge is $10 for deposit in 48 hours and $35 for deposit in 24 hours.

Hazardous Materials. For FedEx Ground U.S. services, the surcharge for packages containing hazardous materials is $27.50 per package.

International Out-of-Delivery-Area Surcharge. For FedEx Express U.S. export package and freight shipments, the International Out-of-Delivery-Area Surcharge is the greater of $26 per shipment or $0.26 per lb.

International Out-of-Pickup-Area Surcharge. For FedEx Express U.S. import package and freight shipments, the International Out-of-Pickup-Area Surcharge is the greater of $26 per shipment or $0.26 per lb.

Oversize Charge. For FedEx Express U.S. package services and FedEx Ground services, the charge for oversize packages is $55 per package.

Residential Delivery Charge. For FedEx Express package and freight services and FedEx Ground services, a residential delivery charge applies to shipments to a home or private residence. For FedEx Express U.S. package services, FedEx Ground service and FedEx International Ground service to Canada, the charge is $3 per package. For FedEx Home Delivery, the charge is $2.55 per package.

Fuel Surcharges. Current fuel surcharge rates: Ground: 8.5 percent. Express: 14 percent.

UPS Fees and Surcharges

Additional Handling. A charge will be assessed for any package that requires special handling, as determined by UPS. $8.50 per package.

Address Correction. If UPS is unable to deliver a package as addressed by the shipper or if the package has an invalid, incorrect or incomplete address, UPS may attempt to find the correct address and complete delivery. $11.00

Chargeback for Consignee Billing Shipments. If a shipper ships a package to an unauthorized consignee, the shipper will be assessed a fee per package in addition to the transportation charges. $11.00.

Collect on Delivery (C.O.D.) For applicable domestic package services, the charge is $11 per package.

Declared Value. The charge for Declared Value is $0.80 per $100 of value. The minimum charge is $2.40.

Delivery Area Surcharge. A surcharge applies to each package delivered to certain ZIP Codes within the 48 contiguous states. Commercial: $2. Residential: $2.75. Extended Residential: $3.25.

Delivery Change. You can request that UPS return the package to you, reroute the package to a new address, have the package held for pickup or have the package delivered on a future date. Delivery intercept: $11.00 per package for web requests; $14.00 per package for phone. Delivery change: $4.00 per package for web requests; $6.00 per package for phone.

Destination Outside Service Area. If delivery of a UPS Next Day Air Early A.M. shipment is requested to a destination outside the service area, UPS reserves the right to assess an additional fee. $10.00 per shipment.

Dry Ice. Most non-dangerous goods shipments containing dry ice are accepted, without requiring the shipper to enter into the UPS Dangerous Goods Agreement (contract). $5.00.

Hazardous Materials. UPS accepts Hazardous Materials only from customers with a UPS Dangerous Goods Agreement in effect and a Scheduled Pickup account, and then for transport within all 50 states and Puerto Rico. Ground: $27.50. Air: $37.50.

Large Package Surcharge. A package is considered a “Large Package” when its length plus girth — (2 x width) + (2 x height) — combined exceeds 130 inches, but does not exceed the maximum UPS size of 165 inches. Large Packages are subject to a minimum billable weight of 90 pounds. $55.00.

Missing/Invalid Account Number or Refusal Fee. In the event of a missing or invalid account number, or nonpayment by the consignee or third party, the original shipper will be billed a fee in addition to the shipping charges. $11.00.

Over Maximum Limits. Packages with an actual weight of more than 150 pounds, or that exceed size maximums (108 inches in length, or a total of 165 inches in length and girth, are not accepted for transportation. If found in the UPS system, they are subject to additional charges. $50.00

Package Tracking, Tracing and Refund Requests. Shipper may be assessed a charge per request for excessive tracking, tracing and refund requests. $3.00.

Remote Area Surcharge. A Remote Area Surcharge applies to each package delivered to certain ZIP Codes within Alaska and Hawaii. Alaska: $15.00. Hawaii: $6.00.

Residential Surcharge. A residential address is defined as On-Call Pickup or delivery to a location that is a home, including a business operating out of a home, that does not have an entrance open to the public. UPS Ground Service fee applies to UPS On-Call Pickups made at residential addresses. UPS Air Services and UPS 3 Day Select: $3.00. UPS Ground Services: $2.55.

Undeliverable Package Return Charge. Return Charge Domestic packages refused by the consignee, or which cannot be delivered due to any other cause beyond UPS’s control, will be returned to the shipper at the shipper’s expense. Service level of the return will be UPS 3 Day Select for Air and UPS Ground for Ground shipments.

UPS On-Call Pickup Area Surcharge. A surcharge applies to each residential UPS On-Call Pickup requested at certain ZIP Codes within the 48 contiguous states. $3.00.

UPS Carbon Neutral (per package). Customers can donate to UPS’s carbon neutral program. Next Day: $0.20. 2nd Day/3-Day: $0.20. Ground: $0.05

Fuel Surcharges. Current fuel surcharge rates for Package Services – Ground: 8.5 percent. Air and International: 14 percent.

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Sig Ueland
Sig Ueland
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Comments ( 4 )

  1. vinson December 20, 2011 Reply

    Thanks for the article. Suggestion: A comparison table would’ve been infinitely easier to read and compare.

  2. shorecc November 14, 2012 Reply

    Thank you for the article! I have found a program that will analyze your address list and can automatically calculate the price for UPS shipments. I’m pretty sure it automatically factors in all surcharges, creating an accurate estimate. I hear FedEx support is coming to this program as well? The program’s name is Courier Logic and can be found at http://www.courierlogic.com

  3. Smith February 7, 2014 Reply

    I learned something today about UPS. Because each individual store is a franchise charges can vary. These franchised stores can not only charge the postage with the fuel costs but can add on the little extra’s such as “documentation fees”. Some UPS store owners do not charge these little “extra’s” and some do. However, there is also a “UPS Service Center” that receives the packages from these little individual stores. These centers do not have all the little questionable “extra’s” and just charge the cost of postage (which does include a fuel charge). The great thing about this is they can also be used to mail out packages from too, eliminating all the little “extras” that individual franchise owners sometimes charge.

  4. chuck July 25, 2014 Reply

    ups-scs delivery charges 2X more than CTL. Compare your shipping co.

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