FedEx increases rates for 2019 by 4.9% and increases multiple accessorial and surcharges

New year brings new rate increases for FedEx customers in 2019

As 2018 comes to an end, FedEx is again leading the charge in announcing rate increases for the new year. Starting January 7, 2019, FedEx will increase its rates by an average of 4.9%, according to a press release. FedEx rival UPS has yet to announce its rate increase for 2019, but it can be assumed that UPS will follow in the footsteps of FedEx when it comes to rate increases. As most shippers are aware by now, that 4.9% can nearly triple and be as much as a 12.5% increase in some cases.

FedEx 2019 general rate increases

In 2017, FedEx announced an average rate increase of 4.9% for Express, Ground, Home Delivery for 2018. This year FedEx has announced an increase in these same areas as well as SmartPost, Freight, Retail Rates and One Rate. FedEx Freight shipping rates will increase by an average of 5.9%. More information on the rate changes can be found here. FedEx blames a labor shortage, the growth of online retailers and high fuel surcharges as the reasons for making customers bear the constant rate increases.

Some FedEx surcharges set to soar

There are 36 accessorial fees to be placed on FedEx Express and FedEx Ground packages in January. Some of the most popular surcharges are listed below. You can view all 36 changes here.

FedEx Surcharge 2018 Fee  2019 Fee % Increase
Additional Handling Surcharge

 

$12 $13.50 12.5%
Address Correction $15 $16 6.67%
Delivery Area Surcharge Varies Varies from

0.15 to $1.50

Around 5%
Extended Service Area Pickup and Delivery $130 $140 7.69%
Oversize Charge $80 $90 12.5%
Residential Delivery Surcharge

U.S. Express Package Services, U.S. Ground

Services, International Ground Service

$4.15 $4.40 6.02%
Residential Delivery Surcharge

FedEx Home Delivery

$3.60 $3.80 5.55%

Don’t be duped by carriers. The percentage increase far exceeds the average 4.9% rate. You must also take into account the increased surcharge rates that FedEx snuck in September of this year.

FedEx has increased their surcharges significantly when viewed historically. In 2018 the Oversize Charge increased by $8.50. In 2019 it shoots up an additional $10. That’s a 24.13% change in only two years. The Additional Handling Surcharge increased by 22.7% in two years. The individual increases appear minor but their collective impact can cost shippers major profits. Carriers cripple customers with their surcharges and hope shippers fail to notice the steady increase over time.

Don’t forget the 2018 FedEx holiday surcharges

Don’t forget about the holiday peak season surcharges added to certain packages shipped with FedEx between specific seasonal dates.

  • The Additional Handling Peak Season Surcharge is an additional $3.20 bringing the total holiday charge to $23.20.
  • The Ground Unauthorized Package Surcharge is an additional $150 per package bringing the total holiday charge to $825.
  • The Oversize Charge is an additional $27.50 bringing the total holiday charge to $107.50.

Read more: FedEx shares 2018 holiday surcharges

FedEx surcharges and rate increases don’t surprise Share a Refund

The number of rate changes and surcharge increases can be disorienting for even the sharpest shipper. The Share a Refund Auditing Team is trained to dissect these surcharges on your shipping account, perform a cost analysis, analyze your shipping profile and generate a proposal of savings.

It’s more important than ever to cut transportation costs. Share a Refund can help. Make sure you put calling the Auditing Team at the top of your to-do list before these surcharges take effect. You are one phone call away from reducing transportation costs and improving supply chain efficiency.

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