Understanding the FedEx Oversize Charge

What is the FedEx Oversize Charge?

The FedEx over­size sur­charge is a sur­charge that is assessed because a pack­age is large, bulky or heave.  It one of three sur­charges that FedEx has based on pack­age size.

The three sur­charge that FedEx has (in order of size and cost from small­est to largest) are:

• Addi­tion­al Han­dling Sur­charge (AHS)
• FedEx Over­size Charge
• FedEx Ground Unau­tho­rized Pack­age Charge

When does FedEx Oversize Charge Apply?

There are two ways that the FedEx Over­size charge is assessed:

• Length – If the longest side is 96 inch­es (8 feet) or longer
• Length + Girth – If Length + Girth (length + [2x Width] + [2x height]) is 130 inch­es of more.

How much is the FedEx Oversize Charge?

 As of 2022, the FedEx over­size charge ranges from $110-$170.  It dif­fers based on the ship­ping ser­vice used and the dis­tance it is being shipped (which is indi­cat­ed by the Zone that the shipment’s Zone.)  This is an exam­ple of a sur­charge that has Zone-Based Charges.

FedEx Over­size Charges vary based on:

• The ship­ping ser­vice used – FedEx Ground and Express ship­ments have a low­er charge, while Home Deliv­er is assessed a high­er charge
• The place where it is shipped to – FedEx Over­size Charge is an exam­ple of a zone-based charge, mean­ing that the fur­ther it is shipped, the more expen­sive it is. The charge (unless nego­ti­at­ed) ranges from $110-$145 for Express or Ground ship­ments, and $135-$170 for FedEx Home Deliv­ery ship­ments depend­ing on the Zone.
• Time of year — Addi­tion­al Han­dling is one of a num­ber of sur­charges that are also sub­ject to peak sur­charges. This means that dur­ing peak sea­son, there is an addi­tion­al sur­charge added on top of this charge.  (The peak charge is tech­ni­cal­ly a sep­a­rate sur­charge but is assessed based on the same criteria).

What is the Peak — FedEx Oversize Charge?

• Dur­ing peak sea­son, FedEx has an addi­tion­al peak sur­charge for FedEx Over­size shipments.
• On August 5, 2022, FedEx announced peak sea­son sur­charges for the 2022 hol­i­day season
• FedEx announced two dif­fer­ent peak charges based on the date:
  • Sep­tem­ber 5, 2022 – Octo­ber 2, 2022 — $39.50 per package
  • Octo­ber 3, 2022 – Jan 15, 2023 — $68.75 per package

Important considerations regarding FedEx Oversize Charges

• The sur­charge for Over­size is much larg­er than the sur­charge for Addi­tion­al Han­dling and can great­ly impact prof­it mar­gins. It is impor­tant to pay close atten­tion to these charges to ensure that you are not being hit with them in instances when you should not be, and that you are con­sid­er­ing these fees in your cost/profitability analy­sis for large products
• Ship­ments hit with Over­size Charges are also weighed at the greater of rat­ed weight or 90 LB’s. This means that if the ship­ment has an actu­al, or dimen­sion­al weight below 90 LB’s, it will be billed as if it weighed 90 LB’s.  If the actu­al or dimen­sion­al weight exceeds 90 LB’s, it will be  billed at that weight. This can also increase the cost of the ship­ment significantly
• Dur­ing peak sea­son, pack­ages that are hit by over­size sur­charges are also assessed an addi­tion­al sur­charge, the Peak Over­size Sur­charge.
• As not­ed above, Over­size sur­charges are billed based on zones, mean­ing that ship­ments that trav­el a longer dis­tance (high­er zone ship­ments) will be charged more. This can have an impact on how prof­itable a prod­uct is, even if it sells for the same price
• Dis­counts can be nego­ti­at­ed on FedEx Over­size sur­charges, and should be con­sid­ered for com­pa­nies ship­ping larg­er packages
• The FedEx over­size sur­charge is very sim­i­lar to UPS’s Large Pack­age Sur­charge, so the fee can­not be avoid­ed by switch­ing car­ri­ers, though the car­ri­ers do dif­fer on their appetite for pack­ages of this size.
• UPS also has sim­i­lar peak sur­charges charg­ing $40 until Oct 1, and $70 from Oct 2 – Jan 14, so the charge and time frames are near­ly identical

Below is the sec­tion from the FedEx ser­vice guide as well as links to the whole ser­vice guide, and the page on FedEx.com where infor­ma­tion about peak charges is updated.