FedEx has announced their 2018 parcel rate increases – here are the specifics.
In its September 18 announcement, FedEx says its average rate increase is 4.9% for Express, Ground, and Home Delivery and will take effect January 1, 2018. Also important to note is that the 2018 FedEx Service Guide will be online starting December 15th.
We’ve outlined the details from FedEx’s update that are most important for those who ship parcels:
- FedEx will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost packages starting January 22nd
- Additional Handling Surcharge increases by one Dollar (9.1%) to $12
- Address Corrections increase by one dollar (7.1%) to $15
- Delivery Area Surcharges increase by $0.10 and $0.20 in most cases, depending on the service type
- Residential Delivery Charge is up to $4.15, an increase of $0.30 (7.8%)
- Oversized Charge increases by $7.50 (10.3%) to $80
- 1lb. Ground Zone 2 increases by $0.33 to $7.58
- A Third Party Billing Surcharge will apply to FedEx Express and FedEx Ground shipments that are billed to a third party
Did you know that “rate changes” is the number one carrier-related shipping concern?
Staying abreast of shipping expenses and rate changes is crucial, since these costs directly impact consumer purchasing decisions, not to mention bottom line profitability. Annual increases, the infamous residential surcharge, complex formulas for DIM weight charges, add additional costs for priority deliveries and more. For shipping vendors and policies, one size does not fit all.
FedEx Rate Changes: What does this mean for ProShip customers?
At ProShip, we are committed to providing our customers with all FedEx options and updates as soon as they are available. With the new 2018 rate changes, there is no impact to ProShip customers that use the ProShip Update Tool. The new FedEx rates will already have been downloaded and updated on your system.
ProShip has been working with FedEx for 17 years, and our extensive knowledge base offers an unparalleled cohesiveness in FedEx offerings to our end users that other providers simply cannot match (not to brag, but we’ve got four Diamond Awards to prove it).
Nonetheless, no matter what carrier(s) you use, businesses need to investigate their shipping mix to determine if they’re making the right shipping decisions in 2018. As General Rate Increases are put into place (yes, UPS will soon announce theirs), shippers will have to budget accordingly.