While shoppers are enjoying huge discounts on electronics, clothing, appliances, and autos this Thanksgiving through Christmas, the Grinch Who Stole Christmas may be the parcel company that delivers these goods. As the holiday season approached FedEx announced that they are imposing “low to mid-range general rate increases that will go into effect on January 7th, 2019”.
FedEx Express and FedEx Ground service base rates will rise by 4.9 percent. The 2019 charges for FedEx Freight LTL shipments will increase by an additional one percent to 5.9%. These price increases will also impact 56 accessorial charges above the base shipping costs. Of the 56 accessorial charge increases, 36 will apply to FedEx Express and FedEx Ground, while the remaining 20 will be assessed by FedEx Freight.
The January 7th increases will apply to:
- Express package and freight standard list rates for US, US imports and export services
- FedEx Ground and Home Delivery standard list rates
- FedEx International Premium rates
- FedEx Express Minimum rates
- FedEx Ground Multiweight rates
- FedEx SmartPost rates
- FedEx One Rate pricing
- FedEx Freight rates
- FedEx Retail rates
FedEx Express and Ground surcharge for ‘additional handling’ will increase from $12.00 to $13.50 per package, based on package dimensions. The charge for ‘address corrections’ will increase by $1 per transaction to $16. These increases may not seem impactful on their own, however, they can add up quickly for high-volume shippers. Unlike UPS, FedEx for the second year in a row did not impose per-package residential delivery charges on traffic moving during the peak shipping season, which for FedEx begins November 19, 2019.
Data2Logistics has a dedicated “Professional Consulting Services” team that can help you identify opportunities across all modes. We provide various services such as data metrics/analytics, market studies, carrier strategy/negotiation, etc. For more information, please contact Dan Leva at [email protected] or 973-222-5882.