Surcharges and Calculating Shipping Costs (US)
Surcharges and Calculating Shipping Costs (US)

Surcharges and Calculating Shipping Costs (US)

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This document shares details around domestic services. International shipments have separate rate calculations and surcharges not listed here.

Billable Weight

The total cost of a shipment is the combination of your (base rate + extra surcharges) x fuel.

  • Fuel surcharges are a variable % of total shipping costs and not a set dollar amount. This means that fuel will apply to the sum of your base rate and other surcharges. Unlike other surcharges, you can expect for fuel to always apply to every shipment. Please see the tables below for more detail.
  • When calculating the base rate, shipping carriers will charge based on what is known as billable weight. The billable weight is determined by comparing the shipment's dimensional weight (a carrier-specific formula based on the shipment's packaged dimensions) and the actual weight (i.e. if you were to put the shipment on a scale) and charging based on which is greater.
  • Dimensional weight formulas can vary. For FedEx and UPS shipments, plug the dimensions of a packaged shipment, as measured in inches, into the following formula and round up to the nearest pound: (Length x Width x Height) / (provided divisor - See Airhouse rate table). As an example, a shipment measuring 10" x 10" x 10" with an actual weight of 2 lbs will have a dimensional weight of 8 lbs and will be billed at the heavier weight of 8 lbs (in this case, the dimensional weight). The dimensional weight will be calculated as follows: (10 x 10 x 10)/139 = 7.19, which rounds to 8 lbs.
  • Dimensional weight itself may vary by service class. For UPS SurePost and USPS, dimensional weight only applies if greater than one cubic foot (1,728 cubic inches). 139 is the standard Daily rate divisor and may change for air vs. ground and Airhouse warehouse location. 139 is the minimum dimensional weight divisor and where any modifiers exist, the result is a typically a lower dimensional weight and more favorable overall base rate. Please see your Airhouse rate cards to see divisor by shipping class.
  • Read more about billable weight from FedEx or UPS.

Surcharges

Depending on any given shipment's weight, dimensions, destination, and other details, you may be charged surcharges on top of your base Airhouse rate. Surcharges are not unique to Airhouse and are determined by the shipping carriers. Some surcharges always apply, and others are less common. Surcharges vary by shipping carrier and shipment and will be added to your invoice at cost. Residential and delivery area surcharges are the two most common surcharges if using UPS and FedEx.

Due to the nature of how surcharges work, we will not be able to give advanced notice for some surcharges until the shipment is created and in the shipping carrier's network. Some surcharges apply late in the delivery process. Surcharges are subject to change at any time without warning by the carrier. As such, the below rates are estimates and not a guarantee of what the invoiced rates will be due to such carrier practices.

We will always endeavor to be transparent when we notice surcharges applying to your shipments that were not anticipated during the quoting process, but we will not issue credits on this basis and recommend customers read through the below list to understand when and where your shipments may have extra fees.

Peak surcharges apply regularly around the holidays and intermittently during other high volume periods, for example, during COVID-19. These peak surcharges with Airhouse will vary by service class and warehouse. In general, peak surcharges are more substantial and volatile than others and can be levied at any moment at will from shipping carriers as their operational costs change, from day to day and week to week. As with other rate changes, Airhouse will endeavor to notify you of any changes as they arise, with as much notice as we can give. For examples, please see the FedEx and UPS alerts centers.

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Please note that the below list is abbreviated for your convenience and is intended to show the most common surcharges Airhouse customers encounter. For a complete list of all possible surcharges, please refer to the rate schedule for FedEx and UPS (p. 122). The rates below are commercial rates and your Airhouse billed rate may be lower where select negotiated Airhouse discounts apply.

FedEx Surcharges

NameWhat is itCommercial rateWill it apply to my shipment?Carrier source
Fuel
Unlike other surcharges, fuel will always apply to every shipment. The fuel multiplier is calculated based on the total of the base rate and any surcharges. If the base rate is $10, and a $5 surcharge applies to the shipment, fuel will be added to the $15 sum of charges. These rates change weekly and are based off of average diesel fuel costs, so it will mirror increases or decreases you see at the pump when you fill up your own gas tank. The fuel surcharge % is different for ground and air services. The 2021 average (as of May): 5.75-8.75%
Variable
All FedEx Services
Residential
Applies if the shipment's destination is a residential address. This also applies to businesses operating out of a residence.
FedEx Ground: $4.80 FedEx Home Delivery: $4.35 FedEx Overnight: $4.95 FedEx 2 Day: $4.95
FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express ServicesOther Air Services
Delivery Area Surcharge
A delivery area surcharge applies to package shipments destined to select U.S. ZIP codes. In addition, a delivery area surcharge applies to FedEx Express and FedEx Ground shipments destined for areas in Alaska and Hawaii that are remote, sparsely populated or geographically difficult to access.
FedEx Ground (Extended Commercial): $3.70 FedEx Ground (Extended Residential): $5.90 FedEx Ground Alaska (Residential, Commercial): $31.50 FedEx Express Alaska (Residential, Commercial): $31.50 FedEx Express Hawaii (Residential, Commercial): $9.50 FedEx Overnight (Extended Commercial): $3.85 FedEx Overnight (Extended Residential): $5.90 FedEx 2 Day (Extended Commercial): $3.85 FedEx 2 Day (Extended Residential): $5.90
FedEx Economy Ground (Smartpost)FedEx GroundFedEx Home DeliveryFedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services
Additional Handling (Weight)
Applies to any package that has an actual weight greater than 50 lbs.
$25.50
FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services
Additional Handling (Dimension)
Applies to any package that - measures greater than 48 inches along its longest side; - measures greater than 30 inches along its second-longest side; - measures greater than 105 inches in length and girth ā€” the length and girth is length plus (two times the height) plus (two times the width)
$16
FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services
Additional Handling (Packaging)
Applies to packages that is in non-standard packaging, including any package that - is not fully encased in an outer shipping container; - is encased in an outer shipping container not made of corrugated fiberboard (cardboard) materials, including but not limited to metal, wood, canvas, leather, hard plastic, soft plastic (e.g., plastic bags) or expanded polystyrene foam (e.g., Styrofoam); - is encased in an outer shipping container covered in shrink wrap or stretch wrap; - is encased in a soft-sided pack (e.g., courier packs, poly bags and bubble mailers) that exceeds 18 inches along its longest side or 13 inches along its second-longest side or 5 inches in height; - is cylindrical, including (without limitation) mailing tubes, cans, buckets, barrels, drums or pails; - is bound with metal, plastic or cloth banding, or has wheels, casters, handles, or straps (including packages where the outer surface area is loosely wrapped, or where the contents protrude outside the surface area); or - could become entangled in or cause damage to other packages or the FedEx sortation system
$14
FedEx GroundFedEx Home DeliveryFedEx Economy Ground (Smartpost)FedEx 2 DayFedEx OvernightOther Ground ServicesOther Express Services

UPS Surcharges

NameWhat is itCommercial rateWill it apply to my shipment?Carrier Source
Fuel
Unlike other surcharges, fuel will always apply to every shipment. The fuel multiplier is calculated based on the total of the base rate and any surcharges. If the base rate is $10, and a $5 surcharge applies to the shipment, fuel will be added to the $15 sum of charges. These rates change weekly and are based off of average diesel fuel costs, so it will mirror increases or decreases you see at the pump when you fill up your own gas tank. The fuel surcharge % is different for ground and air services. The 2021 average (as of May): 7.5-9%
Variable
All UPS Services
Residential
Applies if the shipment's destination is a residential address. This also applies to businesses operating out of a residence. This charge is in addition to all applicable Area Surcharges.
UPS Ground Services: $4.45 UPS Standard Services: $4.80 UPS Domestic and International Air: $5.00
UPS GroundUPS StandardUPS SurePostUPS 2nd Day AirUPS Next Day Air
Delivery Area (Ground)
A surcharge applies to each package delivered to certain ZIP Codes within the 48 contiguous states. For Alaska and Hawaii, refer to the Remote Area Surcharge.
UPS SurePost: $2.35 UPS SurePost (Extended): $2.95 UPS Ground (Commercial): $3.10 UPS Ground (Residential): $4.30 UPS Ground (Commercial Extended): $3.70 UPS Ground (Residential Extended): $5.90 Alaska Remote: $32.50
UPS SurePostUPS GroundOther Ground ServicesOther Air Services
Delivery Area (Air)
A surcharge applies to each package delivered to certain ZIP Codes within the 48 contiguous states. For Alaska and Hawaii, refer to the Remote Area Surcharge.
UPS Air Services (Commercial): $3.25 UPS Air Services (Residential): $4.70 UPS Air Services (Commercial Extended): $3.85 UPS Air Services (Residential Extended): $5.90 Alaska Remote: $32.50 Hawaii Remote: $10.65
UPS 2nd Day AirUPS Next Day AirOther Air Services
Additional Handling (Weight)
Any package with an actual weight of more than 50 pounds.
New as of 4.11.2021: Zone 2: $24.00 Zones 3-4: $25.50 Zones 5+: $27.00
UPS GroundUPS SurePostUPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services
Additional Handling (Length + Girth)
Any package with its length (longest side of the package) plus girth [(2 x width) + (2 x height)] combined exceeding 105 inches
New as of 4.11.2021: Zone 2: $15.00 Zones 3-4: $16.00 Zones 5+: $18.00
UPS GroundUPS SurePostUPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services
Additional Handling (Length)
Any package with the longest side exceeding 48 inches
New as of 4.11.2021: Zone 2: $15.00 Zones 3-4: $16.00 Zones 5+: $18.00
UPS GroundUPS SurePostUPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services
Additional Handling (Width)
Any package with its second-longest side exceeding 30 inches.
New as of 4.11.2021: Zone 2: $15.00 Zones 3-4: $16.00 Zones 5+: $18.00
UPS GroundUPS SurePostUPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services
Additional Handling (Packaging)
Any article that is not fully encased in a corrugated cardboard shipping container, including tires. - Any package with an outer shipping container not made of corrugated cardboard, including but not limited to canvas, leather, metal, wood, hard plastic, soft plastic (e.g., plastic bag) or expanded polystyrene foam (e.g., styrofoam). - Any article that is encased in a soft-sided pack (e.g., poly bags and bubble mailers) that exceeds 18 inches along its longest side or 14 inches along its second-longest side or 6 inches in height. - Any package with an outer shipping container covered in shrink wrap or stretch wrap. - Any package bound with metal, plastic or cloth banding, or that has wheels, casters, handles or straps (including packages where the outer surface area is loosely wrapped or where the contents protrude outside the container surface). - Any cylindrical-like item, including but not limited to barrels, buckets, cans, drums, mailing tubes or pails. - Any package routed through UPSā€™s irregular package sortation process, including but not limited to packages 1 inch or less in height. - Any other package that requires special handling, as determined by UPS in its sole discretion
New as of 4.11.2021: Zone 2: $14.00 Zones 3-4: $15.00 Zones 5+: $16.00
UPS GroundUPS SurePostUPS 2nd Day AirUPS Next Day AirOther Ground ServicesOther Air Services

USPS Surcharges

NameWhat is itWhat you will be billedWill it apply to my shipment?Carrier Source
Oversize
The oversized price is used on parcels of certain mail classes that are greater than 108 inches, but not more than 130 inches, in combined length and girth. Weight is not a factor as long as it does not exceed 70 pounds (no package can exceed 70 pounds).
$100
Parcel SelectĀ (Parcel Select Lightweight excluded)Parcel Return ServiceUSPS Retail GroundĀ®USPS Retail GroundĀ®Ā -- Limited Overland Routes parcels