Peak surcharges are “the new normal” for FedEx as the carrier has no expectation that e-commerce volume will slow down, FedEx Chief Marketing and Communications Officer Brie Carere told analysts on a Tuesday earnings call.
“It will not be just for this fiscal year, but I anticipate customers to pay more for pricing in November and December moving forward,” Carere said. FedEx has been dealing with high volume in its Ground network and various overseas routes during the coronavirus pandemic. Average daily package volume increased 25% year over year in the most recent quarter. The carrier put in place peak surcharges on China to U.S. airfreight routes early in the year and added surcharges on U.S. domestic SmartPost, Express and Ground packages in early June after UPS made similar moves.