FedEx and UPS to Introduce Additional Delivery Fees in Key U.S. Cities

FedEx and UPS are set to introduce new delivery fees in 82 ZIP codes, encompassing cities like Boston, Chicago, New York, Miami, Los Angeles, and San Francisco, with the changes taking effect on April 8 for UPS and April 15 for FedEx.

These additional fees, termed as delivery area surcharge (DAS), will vary from $3.95 to $5.85, depending on whether the delivery is by ground or air, and whether it targets commercial or residential addresses. Fees could rise further in regions classified as “extended” or “remote.”

In other supply chain developments:

• UPS plans to shut down about 200 U.S. facilities as part of its new role as the primary air cargo provider for the USPS, replacing FedEx.
• Industry experts discuss the implications of the new UPS-USPS air cargo partnership.
• Initiatives to address the last-mile delivery challenges in New York City are underway.
• Highlight on Meagan Fitzsimmons for her contributions to the supply chain sector.

The decision to increase rates comes amid a surge in crime rates, as reported by Safehome’s 2024 Crime in U.S. Cities Report, showing a 7% rise in property crimes nationally, a trend particularly pronounced in San Francisco, a leader in larceny cases, which will also experience some of the highest surcharges.

Although the affected ZIP codes represent just under 1% of the U.S. population, their significance is substantial. These surcharges illustrate the ongoing hurdles logistics firms face as they navigate changing market demands and complex operations. As these surcharges are implemented, the impact on shipping costs and delivery times will be scrutinized by stakeholders throughout the supply chain.