FedEx Express and FedEx Ground, subsidiaries of FedEx Corp., will increase shipping rates effective January 7, 2019 by an average of 4.9%, while FedEx Freight will increase by an average of 5.9%. The change will impact the following:

  • Express package and freight standard list rates for US, US export, and US import services.
  • FedEx Ground and Home Delivery standard list rates.
  • FedEx International Premium rates.
  • Minimum rates for FedEx Express.
  • FedEx Ground Multiweight rates.
  • FedEx SmartPost rates.
  • FedEx One Rate pricing.
  • FedEx Freight rates.
  • FedEx Retail rates.

In addition, there will be changes to FedEx surcharges and minimums also effective on January 7. Notable of those changes for 2018 include the following:

Here are some highlights from the announcement, showing the changes to some of the more common surcharges, along with the percentage increase. In recent years, the largest increases continued to be reserved for those surcharges related to package size and dimensions, and this year we also see FedEx doubling the Print Return Label charge.

Most shippers understand by now that there is usually very little correlation between the carriers’ announced average increase and the actual increase by service level, zone, and weight. Additionally, shippers understand that the impact to their parcel budget can vary significantly from the announced average increase. The devil is in the details. A more thorough analysis by Shipware’s team of consultants will be forthcoming once the complete rate announcement can be digested.

Rebecca Lannon is the Client Solutions Manager at Shipware, LLC, a San Diego-based parcel consulting firm. Rebecca has over 11 years of direct carrier experience and has developed a keen understanding for how the carriers structure margin-based parcel contracts. Rebecca is now dedicating her career to assisting well-known companies dramatically reduce their shipping costs.

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