On September 16th of 2019, FedEx announced that they will increase their rates for most of their services. Keep in mind that the rates won’t be increased for the holiday season and they will be increased afterward. However, the increased rates will apply on packages that need additional handling, are unauthorized and are oversized.
In a nutshell, we can see that the new rates apply on the FedEx express shipping for domestic, import and export services. They will be increased by 4.9% on average. FedEx Home Delivery and Ground will also be increased by 4.9%. FedEx will also increase Freight shipping rates by 5.9%. Those rates apply within the United States and for shipping between the US and Canada and Mexico.
All of the rate increases will be applied starting January of 2020. This was just a glimpse of the increase and generic increases in the most commonly used services. However, we need to explore the increase in detail, hence we will have to take a deep look into it.
Services that will be eligible for a rate increase
Below you can see the table where all the rates and increase in rates will be explained. We will compare them to the cost from 2019 and we will provide any additional information that deserves your attention.
All of these prices refer to the cost per package or per service.
Ground commercial and service and zone rate increase in 2020
Zone 2 and 1 pound packages cost is increased by 4.84% and now it will cost you $8.23. The general increase in cost is similar across all the zones. In addition, longer zones measure higher increases. To get a better idea about the rate increase according to the zones, please take a look at the charts below.
As we have mentioned earlier, longer zones measure a higher increase in cost. This mostly affects users who use one distribution center. In order to get a more complete insight into the data, please take a look at the chart below.
Here is also a table where we will reveal the increase in domestic services of FedEx and we will also present a minimum charge increase.
The final word
Here you were able to see the increase in rates and all the cost-related changed FedEx will apply in early 2020. Now you know all about them, hence you can apply the changes to your business and make sure there are no issues related. Take a deep look into the prices and make sure you understand all of them completely.