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FedEx 2020 Rate Increases, Long Zones and Over Size Increase Most

by Jon Eickman on 2019-09-30 11:52:06

FedEx has announced its rate increases for 2020. On average, shippers can expect to see a 4.9% increase for ground and home delivery while freight rates will increase an average of 5.9%. The new rates will go into effect January 6, 2020.

However, these averages do not tell the full story of these rate increases. Detailed analysis of the rates has found that certain shippers are going to be hit a lot harder than others. You will want to take extra time reviewing these rate changes if you fall into one of these categories:

You ship large or heavy packages

  • Additional Handling Charges
    • Charges for dimensions will increase 11.1%
    • Charges for Weight will increase 20%
  • Oversize packages for home delivery will increase 33.3%

 

You ship to Extended Delivery Areas

  • Extended Delivery Area Surcharges have increased 16.1%-27.8%

You ship from one distribution center or utilize “Express Saver” service

  • Rates for Zone 7 and Zone 8 increased 7%-8%
  • All “Express Saver” shipping rates increased 6%-8% for all zones and weights

 

The following table shows the average increase of all services 

(credit Shipwire)

This table shows the most common accessorial charge increases


(credit Shipwire)

If you work with a 3PL like IDS, they will be able to look at your program and tell you exactly how these changes in shipping rates are going to affect your fulfillment program. If you manage your own fulfillment, you should reach out to your Fed Ex representative for details on how you will be impacted before working on your 2020 fulfillment strategy.

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