Surcharge that applies to shipments based on their dimensions, weight or packaging. Fees (on small parcel packages) range from $15.75-$31.50 unless negotiated.
For more info, see Understanding the FedEx & UPS Additional Handling Surcharge
Surcharge applied to shipments where the address is wrong or incomplete and the carrier correct it. Has other (more uncommon) applications as well. FedEx charges $19.50 and UPS $18 unless negotiated. For FedEx multiweight and UPS hundredweight shipments, mistakes are billed per incorrect package corrected, though each is capped.
The weight that FedEx and UPS use to determine your package price. This may be based on the actual weight, the Dimensional (or DIM adjusted) weight, or may be adjusted due to hitting a surcharge which has a weight threshold (such as large package surcharge for UPS and oversize charge for FedEx).
Surcharge for packages shipped to areas that are less densely populated. The carriers provide a list of zip codes where the surcharge applies.
The surcharge has two levels: Delivery Area Surcharge and Delivery Area Surcharge Extended. The latter is for more rural areas and costs more. The surcharge ranges between $3.40 and $6.50 for areas other than Alaska and Hawaii which are more expensive.
The Dimensional divisor, (also referred to as Dim Divisor or DIM) is the number that the dimensions are divided by to calculate the dimensional weight. Unless negotiated, the DIM divisor is 139 for shipments measured in inches and pounds, and 5,000 for shipments measured in centimeters and kilograms.
Cubic inch threshold for packages. Shipments that are under the threshold (calculated as length * width * height) do not have their billed weight subject to dimensional weight adjustments.
The dimensional weight is the number you get what you take a package’s dimensions and multiply (length * width * height) and divide that number by 139.
This formula is a way for FedEx and UPS to calculate what they consider a ‘reasonable’ weight for the size box. This is important for the carriers since they bill based on the weight of the shipment. For most shipments, the dimensional weight is used when it is greater than the actual weight. The DIM divisor of 139 can de negotiated.
FedEx options for having someone sign to receive the package. There are three options, though not some shipments may not have all the options available.
Fee when a customer uses a return label. Currently $1.05 unless negotiated.
FedEx document that contains shipping rates, terms and conditions, and information on shipping items ranging from standard packages to dangerous goods and hazardous materials. Some elements that change frequently such as fuel costs, and services such as ground economy are not included in the PDF and are found on the FedEx website.
A surcharge designed to cover the cost of fuel. The surcharge is calculated as a percentage of other costs, based on a fuel surcharge table that the carriers maintain on their websites.
Fuel Surcharge tables can be found at:
Measurement of the thickness of a package. The carriers measure girth with the following formula: 2x width + 2x height (2W*2H). This can be thought of as wrapping a tape measure around the package). A number of surcharges are based on the length + girth exceeding a certain number.
The annual rate increases and pricing adjustments that FedEx and UPS apply, generally announced in the Fall and go into effect around the beginning of the year
A small parcel package shipped via FedEx ground that is larger than FedEx authorizes for pick-up. This applies to packages that is 9 feet or longer, has a girth of 165 or more or weighs above 150 pounds.
Charge for small parcel packages shipped via FedEx Ground that are larger than FedEx authorizes for pick-up (referred to as “Ground Unauthorized Packages”). FedEx reserves the right to refuse the package, return it to the sender or dispose of it.
When they deliver the package, the package is billed at a minimum 90 LB billable weight and there is a surcharge of $1025 unless negotiated.
A measure of the size of a package that the carriers use for surcharges.
Calculated using the following formula:
Length + 2x width + 2x height
Shipments that are too large to ship small parcel, but do not fill a full truck trailer.
Seasonal surcharge that applies to all shipments that are hit by the standard Additional Handling Charge. FedEx and UPS include peak charge information on their respective websites.
Surcharge that apply for a limited amount of year (often during holiday season). FedEx and UPS provide peak charge information as new charges are being released as these surcharges are not intended to be permanent and therefore are not included in the standard service guide.
Language in your carrier contract that limits how much the carriers can increase your rates in the annual GRI (General Rate Increase). Rate cap almost always applies to linehaul charges exclusively.
