As we move into 2025, FedEx has announced its General Rate Increase (GRI), with significant changes affecting both Ground and Express services. Shippers can expect varying rate increases based on package weight and zone, with heavier shipments seeing the highest price hikes. Here’s a detailed look at the upcoming changes and what it means for your shipping strategy.
FedEx Ground & Home Delivery Rates
FedEx Ground and Home Delivery rates follow a traditional increase structure for 2025. Rate hikes are tied to package weight, with larger and heavier packages facing higher price increases. Overall Average Increase: +6.6%
FedEx Express Services (1 Day)
For 1 Day Express services, FedEx has adopted more targeted rate increases, with the average across all zones and weights landing at +6.0%. Notably, Priority Overnight and Standard Overnight services see irregular increases, likely aimed at converting some shipments to Ground or Home Delivery.
First Overnight
More traditional, increases increment with weight. Avg.
+5.5%, with lower increases (+4.7%) for shipments 1-10 lbs. Less sticker shock expected for these
services.
Priority Overnight:
Consistent, irregular increases. FedEx is targeting specific weights and zones, esp. zone 3. Possibly intended to incentivize Home Delivery / Ground conversions.
Avg. across all weights & zones is +6.0%
Zone 2: avg. 5.2% ** 1-75 lbs., 5.9%
Zone 3: avg. 6.3% ** 5-76 lbs., 7.9%
Zone 4: avg. 5.4%
Zone 5: avg. 5.9%
Zone 6: avg. 5.9%
Zone 7: avg. 5.9%
Zone 8: avg. 5.8%
Zone 9: avg. 6.6%
Zone 13-16: avg. 6.3%
Standard Overnight:
Erratic Increases: FedEx appears to be targeting very specific weights and zones, esp. zone 3. Possibly intended to incentivize Home Delivery / Ground conversions.
Avg. across all weights & zones is +5.8%
Zone 2: avg. 5.5%
Zone 3: avg. 6.3% ** 1-81 lbs., 7.5%
Zone 4: avg. 5.4%
Zone 5: avg. 6.0%
Zone 6: avg. 6.1%
Zone 7: avg. 5.4%
Zone 8: avg. 5.5%
Zone 9: avg. 7.0%
Zone 13-16: avg. 5.2%
FedEx Express Services (2-3 Day)
FedEx’s approach to 2-3 Day Express services deviates from the 1 Day Express strategy. While also targeting specific weights and zones, FedEx adopted a pricing model focusing on higher zones and weights.
Shippers should expect to see increases of over 7% for Zones 5+ with 2 Day Air and Express Saver shipments. For shipments utilizing 2 Day Air AM, expect a similar increase to 1 Day Express Services. Zones 2-5 will incur an increase over 7.5%; other 2 Day Air AM zones will remain around +5-6%.
FedEx also appears to have heavier Express Services (50+ lbs.) in their crosshairs, especially for Express Saver and 2 Day Air services. This decision, aligned historically, is likely intended to disincentive larger / heavier parcels in the FedEx Express network. Coupled with surcharge increases (discussed later), shippers should be wary of shipping heavier packages via Express Services.
FedEx Express Saver:
Avg. across all weights & zones is +6.4%
Zone 2: avg. 4.7% * 51-100 lbs., +4.9%
Zone 3: avg. 4.6% * 51-100 lbs., +4.9%
Zone 4: avg. 4.7% * 51-100 lbs., +4.9%
Zone 5: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 6: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 7: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 8: avg. 7.5%
FedEx 2 Day
Avg. across all weights & zones is +7.2%
Zone 2: avg. 5.8%
Zone 3: avg. 5.8%
Zone 4: avg. 5.9%
Zone 5: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 6: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 7: avg. 7.6% ** 51-100 lbs., +7.9%
Zone 8: avg. 7.6% ** 51-100 lbs., +7.9%
Zone 9: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 10-12: avg. 7.7% ** 51-100 lbs., +7.9%
Zone 13-16: avg. 8.2%
FedEx 2 Day AM
Avg. across all weights & zones is +6.9%
Zone 2: avg. 5.8%
Zone 3: avg. 7.9% * Consistent; no weight-based difference
Zone 4: avg. 7.6% ** 1-100 lbs., +7.9%
Zone 5: avg. 7.8% ** 1-100 lbs., +7.9%
Zone 6: avg. 5.9%
Zone 7: avg. 5.9%
Zone 8: avg. 5.9%
Zone 9: avg. 6.7%
Zone 13-16: avg. 8.1%
What This Means for Shippers
With a 6-7% increase across most services and higher rates for heavier shipments, 2025 will be an expensive year for shippers relying on FedEx Ground, Home Delivery, and Express services. Companies shipping heavier packages or to remote locations like Hawaii and Alaska will feel the brunt of these changes.
FedEx’s strategy seems clear: disincentivize heavier, long-distance packages from the Express network by raising rates and applying larger increases to specific zones and weights. As a result, businesses may need to reconsider their shipping methods, potentially moving toward more cost-effective alternatives like Ground services for certain shipments.
FedEx Surcharge & Fee Changes
In addition to changes made to service level rates, FedEx also published a preliminary list of changes to surcharges and fees in 2025. While most increases remain close to the announced 5.9%, there are several increases worth noting. Chief among these changes are increases tacked to Additional Handling and Oversize Charges, but other important changes hit Delivery Area Surcharges (particularly Ground and Home Delivery), and Address Corrections.
Additional Handling Surcharges: In 2024, Additional Handling increases captured industry headlines. In 2025, FedEx is doubling down. Additional Handling, a focal point for FedEx over the past few years, will increase between 25.9% and 28.2%, year over year.
Additional Handling Surcharges are categorized and defined by FedEx as:
(Dimension)
1) measures greater than 48 inches along its longest side;
2) measures greater than 30 inches along its second-longest side;
3) measures greater than 105 inches in length and girth;
(Weight)
4a) has an actual weight greater than 50 lbs. (U.S. Package Services);
4b) has an actual weight greater than 70 lbs. (International Package Services);
(Packaging) Is in non-standard packaging, including any package that:
5) is not fully encased in an outer shipping container;
6) is encased in an outer shipping container not made of corrugated fiberboard (cardboard) materials
7) is encased in an outer shipping container covered in shrink wrap or stretch wrap;
8) is encased in a soft-sided pack that
o exceeds 18 inches along its longest side or
o exceeds 13 inches along its second-longest side or
o exceeds 5 inches in height;
9) is round or cylindrical,
10) is bound with metal, plastic, or cloth banding, or has wheels, casters, handles, or straps; or
11) could become entangled in or cause damage to other packages or the FedEx sortation system.
Delivery Area Surcharge: Shippers should also take note of increases to DAS surcharges in 2025. Another focal point for FedEx, DAS increases will particularly impact Ground / Home Delivery DAS shipments (+8.8% in 2025) and extended DAS shipments (+7.1% – 7.8% in 2025). This is worth noting as FedEx (and UPS) continue to expand the list of applicable DAS zip codes. In 2024, the biggest headline was the expansion of DAS (traditionally reserved for rural areas) into certain metropolitan areas. Shippers ought to keep an eye on this surcharge in 2025, especially if entering into a contract negotiation.
Address Corrections: Address Corrections will take a more modest increase of 6.7% going into 2025. These surcharges apply to shipments where the entered label address does not match the corresponding recipient address on file with FedEx. At $24.00 per occurrence (2025), these charges can quickly accumulate and add weight to carrier invoices. There is no definition change going into 2025 on how this is applied; however, because an Address Correction is considered a more controllable fee, Reveel finds it important to call this out as an outsized increase going into next year. Check out the Reveel Vital Factors page to see the impact of recurring Address Corrections on your program today.
To navigate these rate changes and optimize your shipping strategy for 2025, Reveel is here to help. We will be adding analysis as UPS announces their 2025 GRI, with our full GRI Impact Analysis coming soon. We can provide personalized insights and solutions to mitigate the impact of FedEx’s GRI and keep your shipping costs in check. Reach out to our team today to learn more.
