FedEx Express, FedEx Ground, and FedEx Home Delivery shipping rates will increase across the board by 4.9%. As with most years, a 4.9% increase might be more or less for a merchant, depending on their shipping profile. Most changes take effect on January 4th, 2021, although some will vary.
Key details to know:
FedEx shipping rate changes*
Update Effective Jan. 20, 2021
FedEx has added on yet another surcharge, this time a 30 cent per package peak residential delivery charge for shippers who hand off an average of 30,000 packages weekly between Jan. 4-31 between FedEx Express, Ground and SmartPost, effective Feb. 15 and again until further notice. They apply to Ground and Express shipments.
Effective Jan. 4, 2021
- FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx SmartPost and FedEx Freight rates will increase by 4.9%. These increases will vary depending on a merchant’s shipping profile.
- There will be changes to shipping surcharges and fees that may apply to your shipment and affect your total shipping rate.
Effective Jan. 18, 2021
The following FedEx Express, FedEx Ground and FedEx Freight surcharge changes will also take place effective Jan. 18, 2021:
- There will be changes to how Additional Handling Surcharge is assessed for FedEx Express and FedEx Ground packages.
- FedEx Freight will introduce a High Cost Service Area Surcharge that applies to certain shipments.
- Certain U.S. locations will be assessed an International Out-of-Delivery-Area Surcharge or an International Out-of-Pickup-Area Surcharge for FedEx International Express Freight® services.
Click here for details on Fedex Shipping Rate Changes.
Effective Feb. 1, 2021
- There will be changes to how fuel is assessed for U.S. FedEx Express Freight shipments. Preview the fuel surcharge table effective Feb. 1, 2021.
Here is more information on the increasing shipping rates including more specifics on changes to FedEx Freight rates.
What else do I need to consider for my business’ shipping needs?
4.9% does not always mean 4.9%. As noted above, the 4.9% average can differ depending on the shipment profile. A 1-5lb Ground Commercial package, for example, could see a 6-6.6% year-over-year increase. Whereas a 2DAY AM package exceeding 30 pounds could see an increase of more than 7%. It is then critical for the merchant to know their specific shipping profile to understand the true effect of these changes.
- Minimum Package Charge. The minimum package charge for FedEx Ground will increase to $8.76. This is important to note; the minimum billable amount is the lowest amount the carrier will charge for a shipment. This represents an approximate 6% increase from the previous year’s minimum package charge. Exceptions to the minimum package charge can occur but will depend on what a merchant has negotiated with their carrier.
- Late Fee. In 2021, FedEx will institute a 6% late payment penalty for exceeding their 15 day payment terms. It is important to note that individual merchant-shipper contracts may have different terms that can be discussed between the carrier and merchant.
- Surcharges. Some surcharges are increasing by as much as 9%. As is consistent with most general rate increases, surcharges are increasing more than the year over year increases of transportation costs. The oversize shipping charge for FedEx Ground Home Delivery, for example, is increasing from $120 to $130, while the delivery area surcharge for extended Home Delivery Residential Services is increasing from $5.40 to $5.90. Both of these changes are over 8% increases year over year.
How can I best prepare for these changes?
Understanding your shipping profile is essential in planning for the impact these increases will have on your business. Jay Group can help by providing a total cost breakdown of your shipping profile. Contact Jay Group today.
