FedEx Shipping Rate Changes

Are you ready for the 2018 FedEx rate increases?

Brace yourself for announcements regarding 2018 rate changes across the common shipping carriers. As 2017 comes to a close, carriers are beginning to release their 2018 rate changes and FedEx is leading the charge by announcing an increase in shipping rates in many areas. It’s no surprise that shipping rates have continued to rise over the years, but what does 2018 have in store for shippers?

FedEx shares plans to hike shipping rates

In a press release distributed on Monday, September 18, 2017, FedEx announced an average rate increase of 4.9% for Express, Ground, and Home Delivery that will take effect January 1, 2018. Right when things are settling down after the holiday rush,  businesses will need to adjust to the shipping increases and implement a business plan that factors in these changes.

It doesn’t stop there though. On January 22, 2018, other significant changes will be going into effect including a new 2.5% billing surcharge that will apply to FedEx Express and FedEx Ground shipments that are billed to a third party. Here are a few changes that small parcel shippers should be aware of while planning for 2018.

  • Delivery area surcharges set to increase by $0.10 in most cases.
  • Additional handling surcharge set to increase from $11 to $12.
  • Address correction charges set to increase from $14 per correction to $15 per correction.
  • Residential delivery charge set to increase from $3.85 to $4.15.
  • Oversized shipping surcharge set to increase from $72.50 per package to $80.00 per package.

See FedEx surcharges and fees report for detailed information.

How to respond as a shipper

If FedEx is your carrier, now’s the time to adjust 2018 budget models and plan accordingly to make potential operational changes to offset rate increases. Don’t hesitate to contact your carrier rep to understand how changes will impact your specific business processes. As added protection, get a second opinion. Contact a shipment auditing company like Share a Refund to ensure you are seeing the maximum amount of refunds returned to your business with the new rising rate prices and increased surcharges. Check in with our parcel contract optimization team and get a free assessment of the expected costs related to the new rates.

It’s UPS’ move now

Anticipation arises as we wait for UPS 2018 rate change information. Will UPS follow in the footsteps of its competitor? Remember, FedEx is not charging incremental holiday residential surcharges on packages like its rival UPS. Will UPS’ announcement challenge the FedEx rate increases at all?

Faced with increased shipping rates, it’s more important than ever to reduce costs in all possible areas.


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