Do you know the end-haul cost of each order?

1. Understand the basic business of the three major express delivery companies in the United States

2、FedEx VS UPS

3. FedEx Ground services and fee composition

4. FedEx Freight services and fee composition

5. Large-ticket products and FedEx Ground and FedEx Freight

In order to save you reading time, I have cited a large number of pictures and data to help you understand quickly. Please believe me, follow me, and you will be an expert in American express delivery.

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OK, Let's go.

1. Understand the three major express delivery businesses in the United States

Main express services in the United States：Mail, Express, Ground, Freight.

1、USPS（United States Postal Service）

OK, this one looks like the United States Postal Service (UPS), just one letter apart. It seems, does it feel like they should have something to do with each other? Haha, they actually have nothing to do with each other, they just look alike. UPS is a very famous commercial express delivery company in the United States. I have also made the main services and features of UPS into the following table to facilitate your comparison and study.

3、FedEx

This is FedEx, but it has nothing to do with the federal government of the United States. It is just a commercial express company as famous as UPS. It was founded in 1971 by Fred Smith, a young man who loved airplanes. Founded, it is now the world's top two express delivery company. I have also made the following table of FedEx’s main services and features to facilitate your comparison and study.

OK，那我们以 FedEx 业务为例，来详细了解一下不同服务之间的细节。

FedEx Express 和 FedEx Ground 的区别

1）运输网络不同

FedEx Express：空运 + 陆运，空运完成运输，两端由卡车完成揽收、派送。

FedEx Ground：完全陆运，卡车和货运火车完成揽收、运输、派送整个流程。

2）Different positioning

FedEx Express：The main focus is express delivery time.

The Difference Between FedEx Ground and FedEx Freight

FedEx Express, Ground and Freight relationship.

Express、Ground、Freight 's sites and resources operate independently, with no sharing or collaboration. The only things that share and collaborate are the brand and customers.

The Past and Present of FedEx Ground

FedEx Ground 运营模式

FedEx Ground Pricing to End Customers

2）Regional partners do not have pricing authority, but can help the headquarters develop customers. There is no direct commission reward, but they can increase the business volume and package density in their region, so the strategic goals and interests are consistent.

The difference between FedEx Freight and FedEx Express Freight

二、FedEx VS UPS

Data as of the end of 2022

1、Which one is better, direct operation model or independent contractor model (franchise model)?

2、共享网络 VS 独立网络

FedEx 运营网络模式如下图：

Finally, what is interesting is that although the logistics network models are completely different, they are exactly the same from the perspective of consumers.

3、FedEx is better for air express delivery, and UPS is better for land parcel delivery?

FedEx and UPS are currently very famous in package transportation and express transportation. Most of their businesses overlap. Air express and ground parcels are their main businesses. Moreover, the two companies have various data such as the scale of air transportation and the scale of ground transportation. They are very close, and the timeliness and price are basically similar (see the price comparison chart below). It is difficult to say which one is much better than the other. It is a competitive relationship in the same echelon.

4、FedEx Prices VS UPS Prices

OK, apart from understanding the strength of express delivery companies, as an e-commerce seller, you are mainly concerned about their prices? How do we choose?

The following is a comparison chart of basic shipping rates for FedEx overnight delivery VS UPS next-day delivery:

The following is a comparison chart of FedEx Home Delivery VS UPS Ground basic shipping rates and oversize and overweight surcharges.：

Summarize：By comparing the prices of FedEx overnight delivery and UPS next-day delivery, as well as FedEx Home Delivery and UPS Ground, we can find that the price difference between them is actually very small and very close.

5、FedEx VS UPS aging

Summarize，By comparing the timeliness of different express delivery products, we found that the timeliness of FedEx and UPS is basically the same.

From the above analysis, FedEx and UPS seem to be suitable. The official website quotations and average delivery times are similar. In fact, either company can meet your needs. However, the current business models and company strategies of FedEx and UPS are different. FedEx Ground and UPS Ground is an example. Currently, FedEx offers more overall discounts to its partners than UPS. Medium and large items often use ground transportation services for shipments. For now, logistics partners that provide drop shipping services for medium and large items They will be more inclined to cooperate with FedEx, and of course they will change as the policies change. If it is not a time-sensitive small package business, then USPS is also a good choice.

3. FedEx Ground services and fee composition

Amazon sellers mostly ship small products to FBA warehouses, while large products are more often shipped by themselves or from three-party overseas warehouses. So let’s focus on the express delivery channels FedEx Ground / FedEx Home Delivery that are mainly used for large products.

1. What is FedEx Ground?

FedEx Ground is FedEx ground transportation service. The color of the logo is green. FedEx Ground includes FedEx Home Delivery. They all provide ground transportation of 1-150 pounds, mainly truck and freight train transportation. The price is compared to FedEx Express. , relatively affordable, with a delivery time of about 1-5 days, and the average delivery time is slower than FedEx Express.

2、What is the difference between FedEx Ground and FedEx Home Delivery?

3. What is the charging logic for FedEx Ground and FedEx Home Delivery?

FedEx Ground 和 FedEx Home Delivery 费用组成对比图

Illustrate：

AHS = Additional Handling Surcharge (additional additional handling fee)

Whichever surcharge is higher will be used, there will be no superposition.

Please refer to the official website for the peak season surcharge collection time.

4、Base shipping rates for FedEx Ground and FedEx Home Delivery

5、FedEx Ground 和 FedEx Home Delivery 的附加费

1）AHS（额外操作附加费）

AHS – Dimensions  超尺：超过以下任意一个即收取此项附加费。

最长边大于48英寸（122cm）。

第二长边大于30英寸（76.2cm）。

最长边 + 侧边周长大于105英寸（266.7cm）。

AHS – Weight  超重：超过50磅（23公斤） 即收取此项附加费。

AHS – Packaging  异形包裹/不规范包装：不规范包装判断（Packaging），有任何以下一种情况即收取此项附加费。

Not completely wrapped in an outer shipping container.

May become entangled in or cause damage to other packages or the FedEx sorting system.

Comes wrapped in an outer shipping container covered with shrink wrap or stretch wrap.

Be round or cylindrical, including (but not limited to) mailboxes, cans, barrels, tires, drums or barrels.

Wrapped in soft-sided packaging (such as express packages, polyester bags, and bubble bags) that exceeds 18 inches on its longest side or 13 inches on its second longest side or 5 inches in height.

Bundled with metal, plastic or cloth straps, or with wheels, casters, handles or straps (such as bicycles) (including packaging in which the outer surface area is loosely wrapped, or the contents protrude beyond the surface area).

Be wrapped in an outer shipping container made of non-corrugated fiberboard (cardboard) material, including but not limited to metal, wood, canvas, leather, hard plastic, soft plastic (such as a plastic bag), or expanded polystyrene foam (such as Styrofoam).

2）Oversize Charge

Longest side over 96 inches (244 cm).
Longest side + side circumference (L + 2W + 2H) exceeds 130 inches (330.2 cm).
Illustrate：If any of the above two items is exceeded, an Oversize surcharge will be charged. If the weight is less than 90 pounds, the basic shipping fee will be charged at 90 pounds.

3）Residential Delivery Charge

When goods are delivered to residential areas, because residential areas are remote and dispersed, FedEx Home Delivery charges a residential delivery surcharge for door-to-door products in residential areas, with a fixed value charged for each order.

4）Peak - Surcharge（Peak season surcharge）

Peak - AHS（Additional operating surcharge during peak season）。

Peak - Oversize Charge（Oversize surcharge during peak season）。

Peak - Residential Delivery Charge（Peak Season Residential Delivery Fee）。

Peak - Unauthorized Package Charge （Unauthorized package surcharge during peak season）。

Illustrate：During the peak season time period officially designated by FedEx, the peak season surcharge is added to the original surcharge. If no surcharge is incurred, the peak season surcharge will not be charged. If several surcharges are generated, the corresponding Several peak season surcharges apply.

5）Fuel Surcharge 

Fuel surcharge = all other charges * fuel surcharge rate.

6）Delivery Area Surcharge

Partitioning instructions

The delivery of express delivery in the United States is based on a zoning system. The continental United States (not outer islands) is divided into zones 2-8. Zones 2-8 are mainly determined based on the distance between the shipping place and the receiving place, which is ultimately reflected in the zip code (details Please check previous articles to understand). The divisions of other regions are as follows:：

To Alaska metro, package to Alaska metro, is listed as 9.

To Hawaii metro, packages to Hawaii metro, are listed as 10.

To Alaska rural, parcel to Alaska rural, is listed as 11.

To Hawaii rural, parcel to Hawaii rural, is listed as 12.

From Alaska / From Hawaii, packages sent from Alaska or Hawaii are classified as zones 13-16, based on distance and remoteness.

Classification of remote areas

The zoning mentioned above is ultimately reflected in the zip code, so FedEx defines remote areas into 6 levels based on distance and zip code:

Contiguous U.S. (Contiguous Zone), on the home continent of the country.

Contiguous U.S. Extended (extended area), in the home continent.

Contiguous U.S. Remote (remote area), in the home continent.

Alaska, an outer island not adjacent to the mainland.

Hawaii, an outer island not adjacent to the mainland.

Intra-Hawaii (inner Hawaii), outer islands not adjacent to the mainland.

Main types of remote area surcharges

FedEx Ground’s main remote area surcharges

DAS - Commercial（Business）
DAS - Extended Commercial（Expand business）
DAS - Residential（Residential）
DAS - Extended Residential（Extended residence）

DAS - Remote（Commercial/Residential）（Remote areas）

7）Address Collection（Address correction surcharge）

If the recipient address provided by the shipper is incomplete or incorrect, Fedex may try to contact the shipper or recipient to find the correct address and complete the delivery, and charge an address correction fee; in addition, if the shipper or recipient actively changes it Address, there will also be an address correction fee, the modification fee is $21 per item.

8）Ground Unauthorized Package Charge

Refers to packages that exceed the size or weight specified by Fedex Ground. These packages are unauthorized and may be rejected and returned to the shipper. These packages will be defined as Unauthorized Packages, and each package will be charged a flat fee of US$1,150.The ultimate goal is to reject the sub-package.

Any package weighing over 150 lbs.

Packages whose longest side plus side perimeter exceeds 165 inches.

Illustrate：Exceeding any of the above conditions is an Unauthorized Package.

Therefore, after understanding the FedEx Ground charge details and surcharge rules, without reducing the quality of the product, we can control the product below the size specified by Oversize or even below the size specified by AHS through reasonable design to reduce our last-mile costs. .

4. FedEx Freight services and fees

Since FedEx Ground has various weight, size, and product type restrictions, how do we transport when we exceed this weight size or special goods?

So for this situation, let’s take a look at what kind of service FedEx Freight is.

1、What is FedEx Freight?

FedEx Freight is FedEx cargo transportation service. The color of the logo is red. The main advantage of FedEx Freight is heavy cargo transportation, which is what we usually call LTL (less than truckload delivery/less than truckload transportation).

Zero: meaning scattered. Dan: In ancient times, it refers to a shoulder pole.

LTL: less than one shoulder load, here it means less than a whole vehicle.

From the English meaning, it can be seen that it is a transportation plan that is less than a full truckload, which means that goods that are less than one car can be transported together with other goods. It is called less-than-truckload transportation here. Therefore, LTL transportation means a transportation solution that can be used when a single shipper is not satisfied with a full truckload of goods.

2、What FedEx Freight LTL Fees Are Composed

LTL fee = base freight + fuel surcharge + other surcharges.

Data comes from FedEx official website

3、How are LTL freight base rates calculated?

4、What are FedEx Freight zones?

5、What is LTL freight class/freight classification (Class)?

1）Freight Class Definition

This standard is defined by The National Motor Freight Traffic Association (NMFTA)，Chinese name：:National Motor Truck Association (NMFTA) 。This standard is the LTL freight class (Class)。

2）How to evaluate freight class?

Based on the evaluation of four transportation characteristics: density, ease of handling, ease of loading, and size of liability, consigned goods are divided into 18 grades, ranging from low to high, ranging from 50 to 500. These characteristics together constitute the commodity "transportability". The lower the freight class, the lower the freight required.

图片来源 Freight Snap

3）Four Characteristics Explained for Evaluating Freight Class

Density：The formula for calculating density is, density = weight (pounds)/volume (cubic feet), which is the ratio of the space an item occupies to its weight. Generally, the higher the density, the lower the freight grade; the larger the volume, the higher the freight grade.

Handling（Ease of operation）：The main consideration is the level of care required when transporting items. If the item is fragile, requires special attention, or has hazardous properties, it will be in a higher freight class and cost more to ship.

Stowability（Loading capacity）：The loading capacity of items depends on how easy it is to transport the goods together with other goods and whether the space can be maximized. Perishable, flammable or dangerous goods are regulated and cannot be transported with certain materials, which reduces space utilization, and goods with lower loading capacity will be assigned a higher freight class.

Liability（Responsibility）：It refers to the potential liability of the carrier when transporting this cargo. Items that are of higher value or are more likely to be stolen or damaged tend to be in higher freight classes and cost more to ship.

Simple understanding: As long as you know what the product is, as well as its size and weight, through a set of logic/rules, you can determine the corresponding freight level.

4）View Freight Class Rates

Each freight class has a corresponding rate. Freight class rate FedEx official website download address：https://www.fedex.com/en-us/shipping/rate-changes.html#express-and-ground-rates

6、How to determine freight class?

1）It can be summarized into the following three steps:

Know the types of merchandise you want to ship.

Measure pallet dimensions (length, width, height) and weight.

Calculate Density = Weight (lbs) / (Length * Width * Height) (feet).

2）The following is an illustration from the FedEx official website:

图片来源于官网

7、Base fee schedule based on FedEx Freight zones

1）What the FedEx Freight Basic Fee Schedule Does

The base fee for FedEx Freight LTL is determined based on the known FedEx Freight zone, freight class, and weight.

2）The logic of the basic fee schedule

Different freight classes correspond to different fees, freight classes range from 50 to 500，Each level has a corresponding fee schedule.

Under the same freight class, different FedEx Freight zones correspond to different fees. The minimum fees for 1-150 pounds and over 150 pounds are different. The final fee is determined based on the rate calculation of the FedEx Freight zone segment corresponding to the weight.

For some remote areas, door-to-door collection and delivery require additional fees. Remote areas are divided into eight levels A - I, and each level has a corresponding postal code (you can check it on the official website).

The figure below shows the fee details based on freight class 50 (50 Class).：

8、How is base shipping determined based on FedEx Freight zone, freight class, and weight?

1）The logic of determining the basic freight: take the smaller value of the fee calculated by actual weight and the fee calculated by alternative weight as the basic fee.

2）Isn’t that a bit generous?

Actual weight (950 lbs) chargeable is: 950 / 100 * 102.72 = $975.84.

The fee chargeable in lieu of weight (1000 pounds) is: 1000 / 100 * 68.4 = $684.

Finally, 684 < 975.84, then the base fee is $684.

9、附加费用

表示有100条收取附加费的规则

Fuel Surcharge

10、Why is LTL freight class important?

Categorizing freight classes provides important upfront information to LTL carriers. Based on freight class, they can determine if they have the right equipment, the right capacity, and better provide pricing estimates so shippers can calculate costs.

Are you using the best packaging for your product? The more "open space" there is within a package, the less dense your shipment will be. In some cases, better packaging means a more cost-effective grade of shipment and may also better fit/protect your shipment, thereby reducing potential damage to your shipment while it is in transit, thereby saving you money.

OK, I finally analyzed the basic situation of express delivery for you. I hope you have a new understanding of American express delivery so that you can further optimize your costs.

5. E-commerce large-ticket products and FedEx Ground and FedEx Freight

1、Definition of bulky products and relationship with FedEx Ground and FedEx Freight

2. Product type

FedEx Ground / FedEx Home Delivery only ships regular products within the specified dimensions. FedEx Freight can carry oversized items, irregular products, some dangerous goods, etc., and must be palletized.

6. How sellers of large-ticket products can save logistics costs

Through the above analysis of U.S. express delivery, some small suggestions from overseas warehouses for large-ticket sellers can minimize the logistics cost of the last leg. This is just a suggestion. Welcome to contact us for in-depth exchanges.