comscore FedEx follows UPS in raising delivery prices among package surge | Honolulu Star-Advertiser
Top News

FedEx follows UPS in raising delivery prices among package surge

Honolulu Star-Advertiser logo
Unlimited access to premium stories for as low as $12.95 /mo.
Get It Now

FedEx Corp. is following United Parcel Service Inc. with plans to raise delivery prices for residential and large packages, as the coronavirus lockdown spurs people to order more online.

Shippers whose volumes have spiked since February will have to pay an extra 30 cents a package, FedEx said on its website today, outlining changes that take effect June 8. In addition, the courier will charge an extra 40 cents on “SmartPost” parcels it hands off to the U.S. Postal Service for final delivery, while $30 will be added to shipments of oversized packages.

“Due to the pandemic and business closures, the FedEx Ground network has been inundated with more costly residential deliveries as well as large packages that are usually picked up in stores rather than shipped,” said John Haber, founder of Spend Management Experts.

For couriers, the surge of residential demand during the coronavirus lockdowns has exceeded the traditional peak-season holiday rush. The spike has dragged on profit margins at both FedEx and UPS because drivers travel further and leave fewer packages at each residential stop than when they make commercial deliveries.

Comments (2)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up