FedEx adds new surcharge for residential deliveries by large customers

FedEx Corp.
FDX,
-1.45%
is adding a surcharge for its large customers delivering to residences, in an effort to provide “the best possible service during this challenging time.” Starting Feb. 15, will apply a surcharge of 30 cents per package for customers who ship more than 30,000 weekly average packages from Jan. 4 through Jan. 31. The “Peak — Residential Delivery Charge” will apply “until further notice” to FedEx Express and FedEx Ground domestic residential packages in the U.S., and will exclude FedEx SmartPost and FedEx One Rate packages. “The impact of the virus continues to generate elevated volumes, and we continue to experience high demand for capacity and increased operating costs across our network,” FedEx said in a statement. The “Peak — Residential Delivery Charge” will be assessed in addition to the customer’s “Residential Delivery Charge” already in place. FedEx’s stock dropped 1.3% in midday trading. It has lost 10.4% over the past three months, while rival United Parcel Service Inc.
UPS,
-2.80%
shares have declined 8.5%. Meanwhile, the Dow Jones Transportation Average
DJT,
-1.27%
has gained 7.6% over the same time, while the Dow Jones Industrial Average
DJIA,
-0.57%
has advanced 8.3%.