FedEx Corp (FDX) will not apply residential surcharges for the upcoming holiday season, the company said in a Thursday statement.
Only packages that are oversized, unauthorized or require additional handling will be charged extra. The holiday season surcharge will be $3 per package for additional handling, $25 per package for oversized shipments and $300 per unauthorized package. Unauthorized packages are those that exceed FedEx's size parameters but that are sometimes shipped at the company's discretion.
FedEx rival United Parcel Service (UPS) will charge extra for most packages delivered around the holiday season at Black Friday and Christmas. The per-package fees range from 27 cents to 97 cents.
The FedEx holiday surcharges will be effective from November 20 through December 24 for all FedEx Express and FedEx Ground shipments.
The Memphis-based company said there's been a 240% increase in oversized packages sent during the holidays over the last decade. About 10% of all volume handled by FedEx Ground is oversized around the holidays.
FedEx stock traded slightly down after the market open.
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