FedEx has announced their 2019 parcel rate increases – here are the specifics.
While trailing on the back of a fairly substantial increase in fuel surcharge that went into effect in September, FedEx announced its 2019 average rate increase of 4.9% for ground, express and home delivery services, while FedEx Freight will increase by an average of 5.9%. All these increases will take effect January 7th, 2019. FedEx also will be adding a few holiday season surcharges and increasing others next year.
We’ve outline the details from FedEx’s update that are most important for those who ship parcels:
- Between November 19 and December 24, FedEx is adding a $3.20 additional handling surcharge on U.S. express and ground services and international ground services.
- During the same period, FedEx is also adding a $150 unauthorized package charge for U.S. and international ground, and a $27.50 oversized charge on U.S. and international ground and U.S. express services.
- FedEx Freight, the company’s less-than-truckload (LTL) division, is increasing its rates an average of 5.9% as of Jan. 7.
- The company said FedEx SmartPost, its last-mile service handled by the U.S. Postal Service, will be increasing in 2019 as well, although a figure was not given.
Other 2019 FedEx surcharge changes:
- Print Return Label, US Express and Ground increases from $0.50 to $1.00 (100% increase)
- Oversized Charge increases from $80.00 to $90.00 (12.5% increase)
- Address Correction increases from $15.00 to $16.00 (6.67% increase)
- Hazardous Materials, Ground increases from $33.00 to $35.00 (6.06% increase)
- Residential Surcharge, ground increases from $4.15 to $4.40 (6.02% increase)
- Residential Surcharge, US Express and Ground increases from $4.15 to $4.40 (6.02% increase)
- Additional Handling Surcharge (per package) that applies when (1) the package weighs more than 70 lbs.; or (2) the length, width or height is more than 60 inches; or (3) the length + width + height is more than 95 inches increases from $11 to $22 for FedEx SameDay City
Did you know that “rate changes” is the #1 carrier-related shipping concern?
Staying up-to-date on 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 and complex formulas for DIM weight charges all add additional costs for priority deliveries and more. For shipping vendors and policies, one size does not fit all. Download Top Carrier Concerns eBook.
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 2019 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 18 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 five Diamond Awards and two Provider of the Year titles under our belt 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.