Aug 3 (Reuters) - FedEx Corp (NYSE:FDX) FDX.N said on Thursday it will apply surcharges on residential packages if they require additional handling, are oversized or unauthorized, during the peak 2017 holiday season.
The Memphis, Tennessee-based package delivery company said FedEx Express and FedEx Ground in the U.S. and Canada will increase holiday surcharges for additional handling by $3 per package, for oversized goods by $25 and for unauthorized shipments by $300.
"These packages consume an inordinate amount of cubic space in FedEx Ground and FedEx Express equipment in the U.S. and Canada," FedEx said in statement. volume of oversized packages account for about 10 percent of total volume handled by FedEx Ground during the holiday season, the company said.
FedEx's main rival United Parcel Service Inc (NYSE:UPS) UPS.N said in June it will levy surcharges on U.S. residential packages during the peak holiday season this year as it seeks to combat the spiraling costs of delivering e-commerce packages. UPS and FedEx have spent billions of dollars in upgrading their networks to handle rapidly rising e-commerce package volumes, leaving investors chafing over the expense.
FedEx shares were little changed in premarket trading on Thursday.