FedEx, the global courier delivery services company, has a way of sneaking an "Unauthorized Package Charge" into its list of fees. This surcharge, while not frequently encountered, has a knack for raising eyebrows when it does appear on the shipping invoice. What's even more surprising is its significant upward trend. Over recent years, these unauthorized package charges have not just risen by about 20% annually but have also doubled in certain cases.
Simplicity in Understanding the Charge
The FedEx Unauthorized Package Charge comes into play when your package surpasses FedEx's defined package size or weight criteria. Here's what qualifies a package for this charge:
If it measures more than 108 inches in length.
If it measures over 165 inches in length and girth combined.
If it weighs over 150 lbs.
Interestingly, FedEx Ground reserves the right to refuse, return, or even dispose of these 'Unauthorized OS packages'. Nevertheless, they may be accepted and delivered depending on FedEx Ground's discretion.
Historically, the Ground Unauthorized Package Charge has witnessed drastic jumps. In 2015, an unauthorized package would invite an additional charge of $57.50. By 2022, the same fee had escalated to a whopping $1,025. In 2023, it surged to $1,150. With no cap to these cost hikes in sight, the charge for 2024 remains a mystery.
Additionally, FedEx institutes a "Peak Season" surcharge. For instance, between October 21, 2019, and January 17, 2020, FedEx added a hefty $350 on top of the regular unauthorized package charge.
The good news is there are ways to mitigate these charges. One of the best methods is by redirecting larger packages to the Less Than Truckload (LTL) network rather than using FedEx Ground or FedEx Home Delivery.
You might ask, "Why LTL?" Simply because LTL shipments, despite taking a bit longer, can save you a hefty sum. With the unauthorized package charge currently at $1,150, even a few minutes extra for LTL can provide considerable savings.
We've seen numerous FedEx Unauthorized OS charges on FedEx invoices in our auditing work. Our data-driven reports can identify each instance these charges affect your shipments, further validating the urgency of this issue.
Understanding these nuances is more than just about avoiding unexpected charges; it's about your business's financial health. Unauthorized and additional handling fees can quickly overtake your shipping budget if not managed properly, leaving a significant dent in your profit margins.
Picture your business navigating the tricky landscape of shipping costs, avoiding unexpected charges, and maximizing profits. By understanding the specifics of FedEx's unauthorized package charges and employing strategic solutions such as leveraging LTL delivery, this story can become your reality.
The FedEx Unauthorized Package Charge might have caught you off guard before, but with this knowledge, you can now stay one step ahead. Unforeseen charges shouldn't dictate your business's narrative. After all, the power to create a cost-effective and efficient shipping strategy is in your hands.
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