FedEx Corp. (NYSE: FDX) announced that they will forego special charges for most packages shipped during the holiday season this year as they compete with their rival, UPS, for a larger share of the millions of items now purchased online.
UPS’s new surcharges will affect shipments near Black Friday and the holidays and will add 27 cents for residential deliveries from November 19 – December 2 and December 17-23. Fees of 81 cents to 97 cents will also be added to overnight, second, or third day deliveries for residential deliveries as well between December 17 – December 23. Charges for oversized packages will also be implemented and a peak surcharge will be added on some international air shipping routes.
FedEx however, will only charge extra for packages that need additional handling such as oversized and unauthorized ones. This surcharge will take in effect from November 20 – December 24. Additional handling prices will be raised $3 per package, oversized goods to be raised $25 per package, and unauthorized shipments will be $300 per package.