FedEx announced their annual rate increase in mid-September 2021, slightly earlier than usual announcements of this nature. FedEx Express, FedEx Ground, and FedEx Home Delivery shipping rates will across the board increase by 5.9%. As with most years, a 5.9% increase might be more or less for a merchant, depending on their shipping profile. Most changes take effect on January 3rd, 2022, although some changes are staggered.
FedEx Rate Changes
FedEx Express shipping rates will increase by an average of 5.9% for U.S. domestic, U.S. export, and U.S. import services.
FedEx Ground and FedEx Home Delivery shipping rates will increase by an average of 5.9%. FedEx Ground Economy shipping rates will also increase.
FedEx Freight shipping rates will increase by an average of 5.9% for customers who use FXF PZONE and FXF EZONE, and by 7.9% for customers who use FXF 1000 and 501. This change applies to shipments within the U.S. (including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands) and between the contiguous U.S. and Canada.
FedEx Freight shipping rates will also increase for shipments within Canada, within Mexico, and between the contiguous U.S. and Mexico.
The following FedEx Express, FedEx Ground, FedEx Ground Economy, and FedEx Freight surcharge changes will also take effect in the coming months:
- Effective November 1, 2021, a fuel surcharge increase will be applied to FedEx Express (U.S. domestic package and freight services), FedEx Ground, and FedEx Freight shipments.
- Effective January 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge that applies when a pickup is performed and no shipment is tendered to the carrier.
- Effective January 17, 2022, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.
- Effective January 17, 2022, a Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.
- Effective January 24, 2022, Additional Handling Surcharge and Oversize Surcharge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone.
Details of all changes to rates, surcharges, and fees are available on the FedEx website.
What Does This Mean For Me as a Merchant?
It is critical that the merchant has a strong relationship and level of communication with their carrier. Additionally, it is essential that the merchant knows their own shipping profile and how increases to shipping costs and surcharges affect the shipping costs of their specific products. Lastly, having the right technology tools that can help to identify the right shipping options for your needs becomes essential in saving time and money.