So if you use FedEx for your shipping needs, be prepared to pay a little bit more starting next year.Īdding to shippers’ problems, it is “extremely likely” that UPS will increase its rates by 6.9%, just like FedEx did. This comes after the company’s shares plunged 21% in late September of 2022 after warning that it would fall $500 million short of its revenue target. Freight rates will also increase by an average of 6.9% to 7.9%.įedEx blames the weak global economy for raising prices, as demand for package deliveries worldwide went down. 2023 FedEx Rate Increases: What We Can ExpectįedEx will raise Ground, Home Delivery, and Express shipping rates by an average of 6.9% in 2023. Other than carriers increasing their shipping rates, learn more about other common logistical issues.
And last but not least, having the right technology tools is key to finding the most efficient and cost-effective shipping option. Second, you need to know your shipping profile inside and out to see how the rate increase will affect your bottom line. When it comes to shipping, there are a few things to keep in mind.įirst, you must have a strong relationship and level of communication with your carrier. General Rate Increase (GRI) refers to a percentage increase in the rates charged by a shipping carrier. However, FedEx introduced a new pricing structure for certain shipments, letting customers save up to 20%. Customers began seeing a bigger shipping bill as early as February 2022.įedEx 2022 surcharges exceeded the announced 5.9% for more high-frequency items. The percentage of increase depended on the weight of the package and where it was going. The company said the rate hike was due to “the significant increases in transportation costs, including vehicle fuel and maintenance expenses.” This is the first time in over six years that the rate increase was greater than 4.9%. Import), FedEx Ground, and FedEx Home Delivery by an average of 5.9%. On January 4, 2022, FedEx announced that it would raise its shipping rates for FedEx Express (Domestic, U.S. This blog post will explain everything you need to know about the upcoming FedEx rate increase and how businesses handled the increases in 2022. FedEx has been raising rates little by little for the past few years, so this latest increase shouldn’t be too much of a shock. It’s important to remember that this is nothing new.
This is a hot topic among businesses, as many wonder how the rate increase will affect them. FedEx will increase its rates once again in the coming year of 2023.
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