FedEx and UPS have announced additional delivery charges for 82 ZIP codes including Boston, Chicago, New York, Miami, Los Angeles, and San Francisco. The increases are scheduled to go into effect on April 8 for UPS and April 15 for FedEx.
The new delivery area surcharge (DAS) will be anywhere from $3.95 to $5.85 depending on the transportation mode (ground or air) and the type of delivery (commercial or residential). Charges could increase even higher in areas labeled as “extended” or “remote,”
UPS recently announced the closing of 200 shipping facilities. This move comes as it replaces FedEx as USPS' main air cargo provider.”
The increased shipping rates could be a result of a recent uptick in crime. According to the Safehome's 2024 Crime in U.S. Cities Report, property crimes rose 7%, nationwide. This was particularly evident in San Francisco, which leads the nation in larceny, and will see some of the biggest increases in these new delivery charges.
While 82 zip codes may not appear significant, they represent nearly 1% of the U.S. population.
The announcement underscores the ongoing challenges faced by logistics companies amidst evolving consumer demands and operational complexities. As the surcharges take effect, stakeholders across the supply chain will be closely monitoring how they will impact shipping costs and delivery timelines.
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