FEDEX WON’T ADD SUR­CHARGES FOR THE HOL­I­DAYS

The Denver Post - - BUSINESS -

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

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