FedEx Waves Goodbye to Festive Surcharges

Hark! Is that the rhythmical jingle of bells we hear in the distance? Christmas is certainly coming, the goose is getting fat and here’s hoping, with a surge in holiday sales and healthy profits, you can put more than just a penny in the old man’s hat.
As the festive season fast approaches, browsers will become buyers, as they search for the perfect gift for their nearest and dearest. With an upturn in demand, the holiday period heralds a busy time for businesses. An increase in orders will bring in welcome sales, but will also mean additional costs for your company.

To maximise profits during this eventful time, it’s essential to try and keep costs as low as possible. Delivery charges can be a real drain on the cashflow and you can imagine delivery companies such as FedEx, UPS and other freight companies rubbing their hands together in glee, more deliveries for you means more work for them. If you frequently use freight companies you need to consider freight auditing. Are you being overcharged? Are all of your packages reaching the right destination at the right time? Do you have the time to check all of the paperwork and make sure there are no mistakes? With so much going on it’s extremely tricky to be all over everything, and during the hectic holiday season it’s nigh on impossible. A FedEx audit and a UPS audit are probably low down on your Christmas wish list, but a small parcel audit could prove interesting – and recoup some of your precious cash.

Christmas may be a time for giving, but on top of the extra work you are gifting in terms of extra packages that require despatch, freight companies like to give themselves a little extra Christmas present. This is provided courtesy of you, their customers, by adding a surcharge on packages sent during the holiday season. Bah Humbug we say!

But, not all freight companies are taking the scrooge-like approach of adding surcharges. FedEx have decided to get into the spirit of giving by choosingnot to charge additional residential surcharges during the holiday season. This makes their chief competitor, United Parcel Service Inc (UPS), look rather stingy in comparison.

Call it a blatant tactics by FedEx if you like, but deliberately undercutting UPS is a master move on the PR front. Although FedEx argue that this isn’t about scoring points against their rival, this is about offering value to customers.
FedEx will incur their own costs of course, the quantity of packages to be delivered can double over the holidays and while FedEx are waiving surcharges for some, they won’t be extending their festive cheer to all. When it comes to deliveries that require extra handling, we’re talking overly large packages or those that are an odd shape, FedEx will charge additional fees.

UPS, on the other hand, won’t be dropping their holiday season surcharges (which will net them a huge return). They defend their reluctance to match FedEx by countering that they will be dealing with a massive increase in demand and will need to lay on almost double the amount of deliveries in order to meet the call.

With more and more people turning to the internet to meet their purchasing needs, it seems that e-commerce is set to continue to grow. FedEx and UPS are pumping money into their networks in an effort to prepare for the busy times ahead and both companies are looking forward to increased demand from existing and new customers.

Cost-conscious businesses keep a keen eye on delivery costs all through the year, but particularly during eventful and demanding peak periods. To ensure you are getting a fair deal it’s wise to inspect the accuracy of deliveries and paperwork. Add a FedEx freight audit and UPS freight audit to your Christmas wish list and resolve to recoup anything you are owed.