A SMALL language change on FedEx's terms and conditions page may have extended the delivery company's surcharges to millions of online shoppers.
FedEx announced it would drop the word "peak" in any of its delivery surcharges and replace it with the word "demand."
The company announced the change will take effect on September 4.
On its website, FedEx said it is making the shift "to continue making adjustments within our network to provide our customers with the best possible service."
"These surcharges will remain in effect until further notice and will be evaluated by FedEx on an ongoing basis."
The company said it would add a surcharge when it experiences "elevated shipping volumes, heightened demand for capacity, increased operating costs, and other strains on our network."
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The change does not impact charges on domestic intra-country shipments, according to the website.
The change will have a year-long impact on customers.
WHY CHANGE THE WORD?
FedEx's peak surcharge was reserved for anticipated high-traffic holidays and events.
Customers would often pay an extra peak fee to ship in the waning hours before Christmas Day, for example.
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But, the new language allows FedEx to keep up with year-round shipping demand through e-commerce.
Demand charges will apply throughout the year and will reflect consumer behavior.
The change cements a coronavirus lockdown measure that the company implemented in 2020.
The latest surcharge set customers back an additional $3.45 per package, according to Refund Retriever.
The website also said customers would be charged an additional $39.50 per package during heightened shipping times for oversized shipments.
The new charges were last updated in January.
FEWER FLIGHTS?
FedEx took fewer freight flights in June, according to Freight Waves.
The company took nine percent fewer domestic flights in June.
Year-over-year flight activity saw a 14 percent downturn.
The fewer flights come from a downturn in consumer discretionary spending.
FedEx officials said in a June earnings call that surcharges will balance the company's finances.
"We expect approximately $800million of international export yield pressure as peak surcharges significantly diminish and product mix continue shifting toward deferred offerings," Mike Lenz, FedEx's Executive Vice President and Chief Financial Officer said on the call.
The company announced that it will retire 29 aircraft this year.
It retired 18 planes in the last fiscal year, ending in May.
The company said it reduced global flight hours by 12 percent in last year's final quarter.
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The U.S. Sun reports on other FedEx changes - here is a controversial way someone was using FedEx to save money.
Also, a FedEx rival recently declared bankruptcy.
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