2015 FedEx General Rate Increase announced: Express, Intl Express, Ground and LTL Increase of 4.9%. This is the first time FedEx has announced Ground prior to UPS. It’s also noteworthy that at 4.9%, Express is taking a higher increase than recent years (3.9% in each of the last 5 years when offset by fuel surcharge reduction). Rob Martinez, President & CEO, Shipware, gives his commentary:
The rate increases are in line with expectations. Not to minimize the announcement, however, as they are very significant. As usual, the actual impact to shippers is significantly greater than the announced “average” Ground rate increase of 4.9%. Actual increase is higher at the lighter weights most commonly shipped, and lowest for the heaviest shipments rarely used by shippers. See table below:
Weight Range Actual Increase (Aver)
1-10 Lbs 6.20%
11-20 Lbs 5.70%
21-30 Lbs 5.30%
31-50 Lbs 4.30%
51-70 Lbs 2.30%
71-100 Lbs 1.90%
The 2015 Ground Minimum Charge is $6.61 (up 5.9% from $6.24). Taken in combination with the 2015 changes to price all Ground packages by dimensional weight, the 2015 General Rate Increase is very significant.
It is also noteworthy that FedEx announced the same 4.9% GRI for FedEx Freight, its LTL division, and moved up the effective date by 3 months to coincide with the rest of the FedEx product portfolio.
Accessorial charges are also increasing (partial list): Additional Handling Service (5.9%), Address Correction (4%), Advancement Fee (7.7%), Declared Value (5.5%), Delivery Area Surcharges (4.1% to 14.3%), COD (4%), Delivery Signature Options (6.6% to 16.6%), Oversize Charge (4.5%), Residential Delivery Charge (4.5 to 6.9%).
Weight Range Actual Increase (Aver)
1-10 Lbs 6.20%
11-20 Lbs 5.70%
21-30 Lbs 5.30%
31-50 Lbs 4.30%
51-70 Lbs 2.30%
71-100 Lbs 1.90%
The 2015 Ground Minimum Charge is $6.61 (up 5.9% from $6.24). Taken in combination with the 2015 changes to price all Ground packages by dimensional weight, the 2015 General Rate Increase is very significant.
It is also noteworthy that FedEx announced the same 4.9% GRI for FedEx Freight, its LTL division, and moved up the effective date by 3 months to coincide with the rest of the FedEx product portfolio.
Accessorial charges are also increasing (partial list): Additional Handling Service (5.9%), Address Correction (4%), Advancement Fee (7.7%), Declared Value (5.5%), Delivery Area Surcharges (4.1% to 14.3%), COD (4%), Delivery Signature Options (6.6% to 16.6%), Oversize Charge (4.5%), Residential Delivery Charge (4.5 to 6.9%).
