Get ready to see your FedEx and UPS bills increase. The carriers are adding 82 new delivery area surcharge zip codes to the existing Delivery Area Surcharge list this April 2024. The surcharge will take effect on April 8, 2024, for UPS deliveries and April 15, 2024, for FedEx deliveries. The delivery area surcharges range from $3.95 to $5.85, depending on the service and delivery location.
FedEx and UPS already have a DAS in place in numerous ZIP codes across the country, but the additions will particularly sting shippers, given the dense urban areas they cover. The 82 ZIP codes impact almost 1% of the U.S. population.
For the most part, new delivery area surcharge zip codes apply to zip codes for areas with lower population density. FedEx and UPS are extending the surcharges to more densely populated regions. Many zip codes affected significant urban population centers, including New York, Boston, Chicago, Los Angeles, and San Francisco.
Top 8 New Delivery Area Surcharge Zip Codes for April 2024
Zip Code | City | Neighborhood | Population | Population Density |
11226 | Brooklyn, NY | Flatbush | 101572 | 78,775 ppl per sq mi |
10467 | New York, NY | Van Cortlandt Pk | 97060 | 41,649 ppl per sq mi |
90044 | Los Angeles, CA | Los Angeles | 89779 | 17,478 ppl per sq mi |
10456 | New York, NY | Melrose | 86547 | 84,979 ppl per sq mi |
11212 | Brooklyn, NY | Brownsville | 84500 | 54,944 ppl per sq mi |
10458 | New York, NY | Belmont | 79492 | 78,784 ppl per sq mi |
11221 | Brooklyn, NY | Bushwick | 78895 | 57,033 ppl per sq mi |
What does the DAS Charge cost?
The surcharges range from $3.95 to $5.85, depending on air or ground service and residential vs. commercial delivery. FedEx and UPS’ DAS tables are virtually the same. In 2024, both will assess a $5.85 charge per eligible residential delivery made by air and impose a $5.70 fee for eligible ground residential deliveries.
The carriers are implementing these new delivery area surcharge zip codes to cover their additional expenses when serving densely populated areas. These areas often require tolls to cross bridges or tunnels, and they experience higher traffic congestion due to limited road expansion and frequent construction. The carriers see these new surcharges as an opportunity to increase their profits and margins, especially when their volume is down.
What is a DAS charge?
A DAS charge refers to the “Delivery Area Surcharge” applied by FedEx or UPS for packages delivered to certain remote or less accessible areas.
Delivery Area Surcharge is one of the additional charges carriers apply based on the delivery address’s zone or location. It’s intended to cover the extra cost of delivering to these areas, which may require additional resources or longer transit times.
How can shippers lower the impact of the new delivery area surcharge zip codes?
Shippers can encourage people to ship packages to commercial locations. Shipping to commercial locations will result in a lower charge and remove the residential surcharge. However, this is often not a possibility.
A proper contract negotiation will not entirely remove the impact, but it could achieve a lower cost for shippers. Contact your account representative for deeper discounts on shipping or accessorial surcharges. Everything is negotiable with FedEx and UPS.
Therefore, contact us at Refund Retriever to learn more about contract negotiation. Our years of experience can lower your shipping by 15% to 30% annually.