2021-2022 Carrier Accessorial Charge Increases

Most shippers are aware that weight, zone and service level affect cost. But most are unaware that shipments are subject to accessorial charges which are additional charges not included in shipping cost. Accessorial charges are charged by carriers for package characteristics and value-added services that go beyond the normal pick-up and delivery requirements agreed upon at the time of purchase.

FedEx and UPS identify over 100 accessorial surcharges. The most common surcharges include, Dimensional, Fuel, Residential, Delivery area and Extended area.

Effective January 24, 2022, FedEx Additional Handling Surcharge and Oversize Surcharge rates will be determined based on zones. In addition, in November 2021, a fuel surcharge increase was applied to US Domestic FedEx Express, FedEx Ground and FedEx Freight shipments. Similarly, in November 2021,UPS raised its fuel surcharges on all its U.S. air and ground services. These updated fuel surcharges will be added to the company’s freight cost as well as the majority of additional surcharges applicable to a particular shipment.

As you can see, almost all of the carrier surcharge levels are increasing for 2022.This means shippers could see their total costs rise by double-digit levels with the combination of rate and surcharge increases. Additional Handling and Large Packages are getting hit the hardest. The data in the charts above show details. These increases will be detrimental to many shippers.

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