It’s that time again. On September 16, 2019 FedEx announced the General Rate Increase for 2020, with an effective date of January 6. The announced average increase for Domestic Express, US Export and US Import, Ground and Home Delivery services is 4.9%. FedEx Freight rates will increase by 5.9%.
Historically, FedEx has consistently increased rates on an annual basis for both Express and Ground. Shippers can expect to see the pattern continue into 2020 with shorter zones receiving smaller increases, while longer zones will be facing increases of a higher rate. In 2010, the cost of a one-pound package shipped from Atlanta to Dallas using Priority Overnight service would have cost $37.85. In 2020, that same package will cost $65.75, an increase of 74%! And that doesn’t even include surcharges! Consumer Price Index shows an increase of 17.6% for the same period.
Surcharges
- Peak Season: FedEx’s peak season surcharge extends from October 21, 2019 to January 5, 2020, 11 weeks in total. The table below breaks down the peak surcharges that will increase and by how much. No additional residential surcharges will take effect for the holiday season.
- Additional Handling and Oversize: AHS and Oversize surcharge changes for international shipments will take effect January 20, 2020.
- Fuel: Also taking effect January 20, 2020, Fuel surcharges will be applied to the following:
- Additional Handling Surcharges
- Delivery Signature Options for Express
- Collect on Delivery
- FedEx Home Delivery Convenient Delivery Options
- Delivery Area: Beginning January 6, 2020, there will be about 1,200 zip codes changes to the Delivery Area Surcharge criteria. We’ve summarized these changes for you below.
Shipping UPS? Here’s how the FedEx changes stack up against its biggest competitor.
Understanding how these annual rate increases affect your shipping costs can be a complicated and time-consuming process that most companies simply don’t have the time for. But not evaluating your individual needs based on ever-changing criteria in the shipping world can have a substantial financial impact. That’s where we come in. AFS provides industry experts to minimize shipping costs and maximize efficiency by evaluating your business’s shipping requirements to ensure you’re not absorbing any unnecessary overhead. For a comprehensive review of how we can lessen the blow of the 2020 GRI, give us a call at 877-242-3383 or send us an email at [email protected].
If you’d like a full breakdown of the 2020 FedEx changes, you can download it here.
