Surcharges and Calculating Shipping Costs (US)

Edited

Understanding shipping costs can be a complex and challenging task, especially with the various factors and surcharges that may impact the cost of your shipment. In this article, we will focus on domestic services and provide details how the shipping rates are calculated by the various carriers Ship Essential works with.

The total cost of a shipment is the combination of your

(base rate + extra surcharges) x fuel.

Billable Weight

Shipping carriers use the billable weight as a key variable to calculate the base rate. The billable weight is the greater value between the dimensional weight (based on the shipment's packaged dimensions) and the actual weight (measured on a scale). You can learn more about billable weight from [UPS].

Fuel Surcharge

The fuel surcharge is a variable percentage of the total shipping cost, and it applies to the sum of the base rate and other surcharges. Unlike other surcharges, the fuel surcharge applies to every shipment. More details can be found in the tables below.

Surcharges

Depending on factors such as the shipment's weight, dimensions, and destination, you may be charged additional surcharges on top of the base rate. These surcharges are determined by the shipping carriers and vary by shipment and carrier. Residential and delivery area surcharges are among the most common surcharges if you use UPS. The surcharges will be added to your invoice at cost.

Please note that due to carrier practices, we may not be able to provide advance notice of some surcharges until the shipment is created and in the carrier's network. Surcharges are subject to change at any time without warning by the carrier. Therefore, the rates below are estimates, and the actual invoiced rates may differ.

Peak surcharges apply during high volume periods such as holidays and other events. These surcharges may vary by service class and warehouse and are more substantial and volatile than other surcharges. The shipping carriers can levy peak surcharges at any time as their operational costs change. Ship Essential will try to notify you of any changes as they arise.

Please note that the below list is abbreviated for your convenience and is intended to show the most common surcharges Ship Essential customers encounter. For a complete list of all possible surcharges, please refer to the rate schedule UPS (p. 122). The rates below are commercial rates and your Ship Essential billed rate may be lower where select negotiated Ship Essential discounts apply.

We strive to be transparent when surcharges apply to your shipments, but we cannot issue credits on this basis. Therefore, we recommend that you review the list below to understand when and where your shipments may have extra fees.

FedEx Surcharges

Name

What is it

Will it apply to my shipment?

Fuel

In contrast to other surcharges, the fuel surcharge is a constant component applied to every shipment. Its calculation is rooted in the total cost, comprising the base rate and any surcharges. For instance, if the base rate stands at $10 and a $5 surcharge is associated with the shipment, the fuel surcharge will be added to the resulting sum of $15. These rates undergo weekly adjustments, closely mirroring the fluctuations in average diesel fuel costs that you observe at the gas pump when refilling your own vehicle. Additionally, it's worth noting that the fuel surcharge percentage varies between ground and air services

All FedEx Services

Residential

Applies if the shipment's destination is a residential address. This also applies to businesses operating out of a residence.

FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express ServicesOther Air Services

Delivery Area Surcharge

A delivery area surcharge applies to package shipments destined to select U.S. ZIP codes.

In addition, a delivery area surcharge applies to FedEx Express and FedEx Ground shipments destined for areas in Alaska and Hawaii that are remote, sparsely populated or geographically difficult to access.

FedEx Economy Ground (Smartpost)FedEx GroundFedEx Home DeliveryFedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services

Additional Handling (Weight)

Applies to any package that has an actual weight greater than 50 lbs.

FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services

Additional Handling (Dimension)

Applies to any package that

  • measures greater than 48 inches along its longest side;

  • measures greater than 30 inches along its second-longest side;

  • measures greater than 105 inches in length and girth — the length and girth is length plus (two times the height) plus (two times the width)

FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services |

UPS Surcharges

Name

What is it

Will it apply to my shipment?

Fuel

In contrast to other surcharges, the fuel surcharge is a constant component applied to every shipment. Its calculation is rooted in the total cost, comprising the base rate and any surcharges. For instance, if the base rate stands at $10 and a $5 surcharge is associated with the shipment, the fuel surcharge will be added to the resulting sum of $15. These rates undergo weekly adjustments, closely mirroring the fluctuations in average diesel fuel costs that you observe at the gas pump when refilling your own vehicle. Additionally, it's worth noting that the fuel surcharge percentage varies between ground and air services

All UPS Services

Residential

Applies if the shipment's destination is a residential address. This also applies to businesses operating out of a residence. This charge is in addition to all applicable Area Surcharges.

UPS Ground, UPS Standard, UPS SurePost, UPS 2nd Day Air, UPS Next Day Air

Delivery Area (Ground)

A surcharge applies to each package delivered to certain ZIP Codes within the 48 contiguous states. For Alaska and Hawaii, refer to the Remote Area Surcharge.

UPS SurePost, UPS Ground, Other Ground Services, Other Air Services

Delivery Area (Air)

A surcharge applies to each package delivered to certain ZIP Codes within the 48 contiguous states. For Alaska and Hawaii, refer to the Remote Area Surcharge.

UPS 2nd Day Air, UPS Next Day Air, Other Air Services

Additional Handling (Weight)

Any package with an actual weight of more than 50 pounds.

UPS Ground, UPS SurePost, UPS 2nd Day Air, UPS Next Day Air, Other Ground Services, Other Air Services

Additional Handling (Length + Girth)

Any package with its length (longest side of the package) plus girth [(2 x width) + (2 x height)] combined exceeding 105 inches

UPS Ground, UPS SurePost, UPS 2nd Day Air, UPS Next Day Air, Other Ground Services, Other Air Services

Additional Handling (Length)

Any package with the longest side exceeding 48 inches

UPS Ground, UPS SurePost, UPS 2nd Day Air, UPS Next Day Air, Other Ground Services, Other Air Services

Additional Handling (Width)

Any package with its second-longest side exceeding 30 inches.

UPS Ground, UPS SurePost, UPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services

USPS Surcharges

Name

What is it

Will it apply to my shipment?

Oversize

The oversized price is used on parcels of certain mail classes that are greater than 108 inches, but not more than 130 inches, in combined length and girth. Weight is not a factor as long as it does not exceed 70 pounds (no package can exceed 70 pounds).

Parcel Select (Parcel Select Lightweight excluded), Parcel Return Service, USPS Retail Ground®, USPS Retail Ground® -- Limited Overland Routes parcels

Nonstandard Size

For Priority Mail shipments, different surcharges will apply in the following scenarios as of mid-2022: 1) parcel with length measuring between 22-30 inches, 2) parcel with length measuring over 30 inches, 3) parcel with cubic volume exceeding 2 cubic feet.

USPS Priority Mail