FedEx Shipping Rates increases for 2018

In case you hadn’t heard, FedEx has announced its 2018 rates. New rates will go into effect on January 1, 2018 and include package returns. Your business might be too busy working on holiday orders to even think about next year’s rates, but Jan. 1 will be here before you know it, which is why we’ve reviewed all the changes for you. Here are some of the key changes:

  • FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9 percent
  • FedEx Express package and freight standard list rates will increase an average of 4.9 percent (for U.S., U.S. export and U.S. import services)
  • FedEx Freight rates will also increase by 4.9 percent, on average

While the aforementioned services will all see an average increase of 4.9 percent, it’s important to understand that rate changes will vary based weight, zone and service.

FedEx Home Delivery

Let’s take a deeper look at changes to FedEx Home Delivery rate changes. Here’s the breakdown by weight, with packages in the 16-20 lb. range taking the biggest hit.

In this breakdown by zone, you’ll see that packages traveling to Zone 4 experience the biggest increase, while packages bound for Zones 6 and 8 experience less of an impact.

The FedEx Home Delivery net minimum value for a 1 lb. package going to Zone 2 will increase 33 cents, to $7.58. Nearly all agreements state this will be the lowest price, no matter what your negotiated discount is. Please note that $7.58 only reflects the shipping charge, and that you’ll still need to account for residential and fuel surcharges.

Surcharges

In addition to shipping rate increases, FedEx will also change its surcharges, also effective Jan. 1. Key changes include:

  • FedEx Ground (residential) delivery area surcharge, which is applied when a shipper selects FedEx Ground but the package is sent to a residence. This surcharge is increasing 10 cents, from $3.90 to $4. Ecommerce shippers can save money by choosing FedEx Home Delivery when shipping to residential addresses.
  • FedEx Home Delivery® (residential) delivery area surcharge is also increasing 10 cents, from $3.35 per package to $3.45 per package.
  • The Additional Handling Surcharge for FedEx Express and FedEx Ground is increasing by $1 (9.1%), from $11 to $12.
  • The Address Corrections surcharge is also increasing by $1 (7.1%), from $14 to $15.
  • The Oversized Charge increases by $7.50 (10.3%), from $72.50 to $80.

Find more information on common FedEx shipping surcharges below:

Additional changes

There are a couple other upcoming changes you should know about:

  • An additional handling surcharge for FedEx Express (U.S. and international) will now apply to any package that measures greater than 48 inches on its longest side, which is a change from 60 inches in 2017.
  • A Third Party Billing Surcharge will apply to shipments that are billed to a third party. The surcharge will be charged to the third-party payer. Please see the FedEx Service Guide for the definition of a Bill Third Party shipment.
  • FedEx will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost packages effective Jan. 22, 2018.

Rate information

How we generated the information for this blog post:

  • Rate source: FedEx Home Delivery Standard List rates
  • Calculation method: We calculated the difference between the 2018 and 2017 overall shipping rates for the different weight groups (up to 50 lbs.) across shipping zones (2-8). To determine the shipping rate increase percentages for the different weight groups, we divided each difference by the corresponding 2018 overall shipping rate. FedEx Standard List rates were used.

 

 

Author: ShipWorks

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