FedEx ups peak surcharges as demand stretches air capacity

FedEx has implemented fresh increases in international peak surcharges as strong demand stretches air cargo capacityand whichis also impacting on its services and operations in Europe, CEP-Research reports.

As of 10 May, the US integrator adjusted diverse peak surcharges for freight shipments between various parts of the world.

For example, the surcharge on FedEx Express freight shipments from the US to countries in the Middle East, Indian sub-continent and Africa region as well as in Latin America went up from $0.10/lb to $0.35/lb. (This followed a similar increase to numerous Asia Pacific destinations, including China, Australia and New Zealand, on 19 April)

Another notable increase is for freight shipments from China/Hong Kong to the US Canada and Mexico where the peak surcharge went up from $0.90/lb to $1.60/lb.

As of 17 May, the surcharge on FedEx Express freight shipments from Europe to the US and Canada will increase from $0.10/lb to $0.39/lb.

Service delays in Europe

FedEx is continuing to warn customers in Europe about service delays for shipments to the Americas, due to a combination of high demand for capacity and operational issues at its Charles de Gaulle hub, including high volumes for sorting.

In a service alert at the end of last month, it noted: “The logistics market is experiencing a high demand of shipments to and from the United States of America, causing services delays on the movement of shipments from Europe to the Americas (United States of America, Canada, and Latin America).

It said that consequently, both FedEx and TNT Economy and Economy Freight shipments entering the network and that are destined for the Americas will be impacted by further delays. Contingency plans are in place, including plans to add extra capacity to the network to move the delayed shipments and meet future demand.”

The situation has now forced the company to suspend a lower-priority service. FedEx told customers in a service alert: “To support capacity management and ensure that high priority Express shipments continue to move through our network, we are temporarily suspending the International Economy Freight (IEF) service as of 3 May, until further notice. We recommend that for time-critical shipments, customers opt for our Express or International Priority services. Note that the newly launched FICP (FedEx International Connect Plus) service is not impacted.”

Italian operation disrupted

Meanwhile,, FedEx is again being impacted by industrial action in Italy where union  s are continuing to protest at several sites against recently announced restructuring plans.

The company said in a 6 May service alert: “Due to industrial action at our site in Milan, FedEx and TNT national and international deliveries are experiencing significant delays. Shipments moving towards to our station of Milano Mega will suffer a 48/72-hour delay.”

FedEx Express Italy last month announced details of its network restructuring plans, including 800 new jobs, the closure of the Piacenza hub which could lead to 600 job losses, and opening of a new facility at Novara, near Milan, in the second half of 2022.