FedEx SmartPost Rate Increase

Do you ship with FedEx SmartPost?  If so, prepare to see an increase effective July 15th, 2013.  FedEx will be adding a delivery area surcharge of $0.25 per package to shipments destined to select US Zip codes.

Your individual impact on this increase will depend on your shipping characteristics with the primary factors being:

     o  What % of the volume is sent to "remote locations:
     o  What % of your volume goes by FedEx SmartPost
     o  Your Zone distribution*
     o  The size and/or weight of your shipments*

*Minimum charges will play a factor even though the $0.25 applies equally.  It will account for a higher % of the overall spend the lower the weight and the nearer the zone distribution.

UPS has not yet published any such increase, but we all can presume that they will follow suit in the coming months. 

Residential Surcharges continue to get waived given that USPS delivers the "final mile", however we should expect the Delivery Area Surcharge to continue increasing going forward.  This increases is estimated to bring $100,000.00 in additional revenue per active shipping day to FedEx which amounts to roughly $25 million per year.  Everyone using FedEx SmartPost will be making their contribution.