Understanding Shipping Surcharges
Understanding Shipping Surcharges
Surcharges are additional fees carriers add on top of base rates. Understanding them helps you price shipping accurately.
Common Surcharge Types
Overview:
| Surcharge | Typical Cost | When Applied |
|---|---|---|
| Fuel | 5-15% of base | Always |
| Residential | $4-6 | Home delivery |
| Delivery Area | $3-5 | Rural/remote |
| Oversized | $15-100+ | Large packages |
| Additional Handling | $15-25 | Irregular packages |
Fuel Surcharges
How It Works:
- Percentage of base rate
- Changes weekly
- Based on fuel prices
- Applied to all shipments
Current Rates: Fuel surcharges fluctuate. Check current rates:
Dashboard → Settings → Carrier Rates → View Surcharges
Historical Range:
- Low: 5-7% (stable fuel prices)
- Normal: 8-12%
- High: 15%+ (fuel crises)
Residential Surcharges
What Is It: Extra fee for delivering to homes instead of businesses.
Amounts:
| Carrier | Ground | Express |
|---|---|---|
| UPS | $4.60 | $4.60 |
| FedEx | $4.55 | $4.55 |
| USPS | None | None |
How to Minimize:
- Ship to commercial addresses when possible
- Use USPS for residential (no surcharge)
- Consider customer pickup options
Delivery Area Surcharges
Extended/Remote Areas: Carriers charge extra for:
- Rural addresses
- Remote ZIP codes
- Alaska/Hawaii
- Certain islands
DAS (Delivery Area Surcharge):
- Standard: $3-5
- Extended: $6-9
- Remote: $10+
Check Your Address:
Dashboard → Rates → Enter Address → View Surcharges
Oversize Surcharges
Package Size Thresholds:
| Category | Dimensions | Typical Surcharge |
|---|---|---|
| Regular | Up to 96" L+G | None |
| Large | 96-130" L+G | $30-45 |
| Oversize | 130"+ L+G | $90+ |
Calculation:
Length + Girth = L + (2×W + 2×H)
Example: 48" × 24" × 24"
= 48 + (2×24 + 2×24)
= 48 + 96 = 144" (Oversize!)
Additional Handling Surcharges
Triggers:
- Longest side > 48"
- Second longest > 30"
- Weight > 70 lbs
- Cylindrical packages
- Not in corrugated box
Cost:
- UPS: $15-25
- FedEx: $18-25
- Varies by service
Signature Services
Options and Costs:
| Service | Cost | What It Does |
|---|---|---|
| Indirect Signature | $3-4 | Neighbor can sign |
| Direct Signature | $5-6 | Recipient only |
| Adult Signature | $6-8 | 21+ with ID |
Saturday/Sunday Delivery
Weekend Surcharges:
- Saturday delivery: $16-20
- Sunday delivery: Limited availability
- USPS: No weekend surcharge
Peak Season Surcharges
Holiday Season (Nov-Jan):
- Additional $0.25-5.00 per package
- Varies by size and service
- Announced annually
- Apply to all shipments
Planning Ahead:
- Build into pricing
- Communicate to customers
- Consider earlier shipping
- Use alternative carriers
Hazmat and Special Handling
Dangerous Goods:
- Lithium batteries: $10-20
- Flammable items: $30+
- ORM-D materials: $15-25
- Requires special labeling
Address Correction Fees
Charged When:
- ZIP code wrong
- Address not deliverable
- Missing apartment number
Cost:
- USPS: $0.25-0.50
- UPS: $17-21
- FedEx: $17-21
Prevention:
- Always validate addresses
- Use address verification
- Confirm with customers
Surcharge Comparison by Carrier
For Residential Ground:
| Surcharge | USPS | UPS | FedEx |
|---|---|---|---|
| Fuel | Included | 8-12% | 8-12% |
| Residential | None | $4.60 | $4.55 |
| Saturday | None | $16 | $16 |
Minimizing Surcharges
Best Practices:
- Use USPS for residential
- Ship to commercial when possible
- Right-size packaging
- Validate addresses
- Avoid Saturday unless needed
Cost Calculator: Preview all surcharges before purchase:
Dashboard → Create Label → View Rate Breakdown
Surcharges in Rate Shopping
AtoShip Includes:
- All known surcharges in rate display
- Total cost comparison
- No hidden fees at checkout
- Transparent pricing
Disputing Surcharges
When to Dispute:
- Wrong address type charged
- Incorrect dimensions
- Surcharge applied in error
How to Dispute:
- Go to transaction in Billing
- Click "Dispute Surcharge"
- Provide documentation
- Submit for review
Surcharge Updates
Stay Informed:
- Carriers update annually
- Fuel weekly
- Peak season announced Q3
- Check AtoShip announcements