FedEx Reduces Max Package Length and UPS is Following in Their Tracks

max-package-lengthIt was just recently this year, FedEx Corp. reported its news to diminish the max package length for the Additional Handling Fee from 60 inches to 48 inches (length of longest side) before the surcharge is added.  Therefore, as of June 1, 2016, any type of package or bundle with the length of 48 to 108 inches will have a $10.50 per bundle extra charge applied.

Today, UPS reported that successful June 6, 2016, it would stick to this same pattern. The accompanying is posted on the UPS site:

“Effective June 6, 2016, UPS is changing the measurement that determines whether the UPS Additional Handling charge will be applied to UPS® Ground services packages in the U.S. The updated 2016 UPS Rate and Service Guide will be available to download on June 6, 2016.

Any package with the longest side exceeding 48 inches, instead of 60 inches, will be assessed the fee. The Additional Handling fee of $10.50 remains the same. The change does not impact UPS Air or International shipments.

This change is being implemented due to the additional handling required for these types of packages in the UPS network.”

Then, the article went on to say:

“Additional Handling Surcharge. A surcharge applies to any FedEx Ground® package that measures greater than 48 inches but equal to or less than 108 inches along its longest side. Prior to June 1, 2016, a surcharge applies to any FedEx Ground package that measures greater than 60 inches but equal to or less than 108 inches along its longest side. All other Additional Handling Surcharge size, weight and packaging parameters remain unchanged. The surcharge remains at $10.50 per package. This change applies to shipments within the U.S. and from the U.S. to Canada.”

Numerous shippers don’t know about these developments and usually they do not realize that their transportation expenses are climbing. Indeed, even those that know about these changes are regularly not familiar with procedures to battle such extreme changes. Do understand, on Jan 1, both carriers likewise applied an about 17% expansion on the Additional Handling Surcharge when it was raised from $9 per bundle to $10.50 per bundle. This will viably be the seventh increase that UPS has applied and sixth increase that FedEx has adapted in under year and a half.

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Ed Romaine
Ed Romaine
Romaine has spent over 30 years involved with organizations looking to optimize their distribution, manufacturing, and warehousing operations. Focusing on customer’s processes, systems and business model, Romaine has helped dozens of organizations improve profitability by reducing labor, floor space, errors and inventory while improving accuracy, inventory turns and cut-off times.Within the industry trade association, MHI, Romaine has taken numerous leadership positions over his 18 year membership including: Chairman of the Automated Storage & Retrieval (AS/RS) Group, Chairman of the Order Fulfillment Council of America, Chairman of the Warehouse Execution Systems Group and was one of the originators of the Carousel and VLM Product Section Group.Romaine is a frequent editorial and information contributor to hundreds of publications, blogs and online publications and has been a speaker at dozens of Supply Chain, Logistics, Lean and Facility organizations and functions.

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