Often referred to as a “service fee” or “handling charge”, surcharges are additional expenses applied on top of already existing shipping fees. Varying from temporary surcharges – such as holiday surcharges applied during peak shipping periods – to permanent fees that range from fuel surcharges to large package surcharges, there is a wide range of additional expenses that shipper’s need to know about.
Types of Shipping Surcharges
To help strengthen your shipping efforts, consider what some of the most common surcharges are – as identified by Refund Retriever based on their data and reporting – and how they may impact your business.
- Residential surcharges
Residential Surcharges are applied to deliveries made to home addresses and include businesses that operate out of a home. For each residential delivery, an additional charge per shipment may apply.
- Delivery area surcharges
Delivery Area Surcharges are applied to addresses that are deemed as rural or outside of a specific range from a FedEx or UPS hub. Essentially, this surcharge is applied for the extended distance it requires for the delivery to be made.
- Additional handling surcharges
Additional Handling Surcharges are flat rate fees applied to packages over 48 inches long.
- Direct signature surcharge
Direct Signature Surcharge Is a fee applied for the necessary task of receiving a signature upon delivery of a package.
- Declared value surcharges
Declared Value Surcharges are offered to give shippers more peace of mind on packages worth $100 or more. This surcharge allows shippers to identify the value of the package in case something should happen – whether it be lost, damaged or stolen – and helps protect their shipping investment.
- OS extra surcharge
OS Extra Surcharge defines “other shipping” surcharges and varies widely from freight fees to international fees and more. The best way to monitor potential OS surcharges – and all surcharges – is to have an auditing system in place that alerts you to any fees inaccurately charged to your account.
- Indirect signature surcharges
Indirect Signature Surcharges require signature although they do not require the signature of the person whom the package is being sent to. This is typically less expensive than direct and adult signature requirements and rates.
- Weekly service surcharges
Weekly Service Surcharges are surcharges that vary every two weeks based on the fluctuation of fuel charges and adjust according to the fuel rates of each two weeks prior.
- Print return label surcharges
Print Return Label Surcharges are applied only if shippers used a return label provided to them.
- Adult signature required surcharge
Adult Signature Required Surcharge is a fee added to deliveries that will only allow for adults 21 and older to sign for the package/s being delivered.