FEDEX WON’T ADD SURCHARGES FOR THE HOLIDAYS
FedEx will forgo most holiday surcharges on home deliveries this year, drawing a contrast with plans for stepped-up fees at United Parcel Service amid a surge in online shopping.
Additional holiday charges will be applied only 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.
“FedEx is smaller on the ground side than UPS and they can probably take a little more volume during peak,” he said. “They’re going to let UPS be Scrooge at Christmas.”
UPS said the surcharges were needed to pay for the ramped-up operations over the crucial holiday period. — Bloomberg News