August 3, 2018 / 2:21 PM / 3 months ago

FedEx to not charge extra for most peak-season home deliveries

FILE PHOTO: The tail of a FedEx plane is seen during the presentation of the future extension of the FedEx hub in Roissy-en-France, North of Paris, France, October 18, 2016. REUTERS/Philippe Wojazer

(Reuters) - FedEx Corp (FDX.N) said on Friday it would not charge customers extra fees for most packages delivered to homes during the peak holiday shopping season, except packages that are oversized, unauthorized or require additional handling.

However, rival United Parcel Service Inc (UPS.N) said last year it would raise surcharges for most residential packages for the 2018 peak season.

FedEx would charge $3.20 at its U.S. express business and U.S. and international ground services for a package that needs additional handling, while the surcharge on an oversized package would be $27.50.

A $150 surcharge will apply to an unauthorized package at the package delivery company’s U.S. and international ground business.

The surcharges are from Nov. 19 to Dec. 24.

In June, UPS started charging an extra $150 to handle oversized packages and pallets, along with a new charge for packages with mislabeled dimensions.

FedEx on Friday also updated its surcharges on some U.S. and international packages, effective September and January.

The rise of e-commerce has forced UPS and FedEx to grapple with increased volumes of massive goods such as sofas and televisions that consumers are increasingly buying online.

Reporting by Arunima Banerjee in Bengaluru; Editing by Maju Samuel

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