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FedEx charges customers extra fees during their entire holiday season as they prepare for an increase in housing supplies.
The carrier, which has long dominated the U.S. parcel delivery package, said customers who meet a certain volume threshold will be charged a Peak Residential Delivery Charge for certain packages shipped anytime between Nov. 2. and Jan.17.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| FDX | FEDEX CORPORATION | 206.97 | +0.33 | + 0.16% |
According to the temporary change
UPS PLANS HEFTY HOLIDAY SERVICE AT MID CORONAVIRUS-RELATED SHIPMENT SURGE
“While the impact of the virus continues to generate an increase in housing supply, we are entering this holiday peak season with very high demand for capacity and we are experiencing increased operating costs in our network,” FedEx said. “We expect that volume of housing will continue to grow in the new year.”
A FedEx Express courier prepares the heavy packages in the delivery truck parked on the street in Hong Kong, China on November 5, 2011. (Photo by Budrul Chukrut / SOPA Images / LightRocket via Getty Images)
The US Postal Service adds similar fees. The post office announced plans earlier this month that it will add additional fees in October ahead of the expected rise in holiday orders from online shoppers.
At the top of the holiday ladder, carriers have already wiped out with the large volume of online orders, which were highlighted during this year by government-mandated lockdown orders.
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While commercial volumes were “significantly” down due to coronavirus-related business closures around the world, the company had “increased in domestic deliveries at FedEx Ground and in transpacific and charter flights at FedEx Express,” FedEx said in its latest revenue report.
“With security as the top priority, these men and women deliver critical transportation of critical supplies around the world and deliver peak-level e-commerce volumes across the United States,” said FedEx Corp. CEO Frederick W. Smith.
FedEx shipments increased 20% over the three-month period ending in May, and UPS had a 50% increase over a three-month period ending in June, according to Bloomberg.
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