It’s Not Too Late to Negotiate – FedEx’s New Rates Go Into Effect Next Monday

FedEx’s new 2022 rates go into effect next Monday, January 3, and as Reveel’s CEO Josh Dunham noted in an Bloomberg article published on Black Friday, shippers “must contend with double-digit increases for parcel service, including special surcharges, even after they endured price jumps of almost 10% last year.”

Both FedEx and UPS announced a 5.9% general rate increase for 2022, but to put those increases in context and find out how much shippers’ costs will really be impacted, Reveel’s data scientists created a model that applied the rate increases and importantly the new surcharges, fees and terms both carriers introduced but do not include on their rate cards.  Then they ran the model against shipments Reveel’s customers made in 2021 and compared the totals.  

What they found in the resulting year-over-year comparison is that most businesses will see a significantly higher increase than the 5.9% announced by FedEx and UPS. Some of our data scientists’ most noteworthy findings include:

  • Less than 3% of shippers will see an increase at or below the 5.9% general rate increases both FedEx and UPS announced for 2022;
  • The actual impact of UPS’s 2022 fees and terms will be a 10.25% increase for most companies;
  • The actual impact of FedEx’s 2022 fees and terms will be a 12.86% increase for most companies; and
  • The impact for some customers and sectors will be far higher – for example, businesses that use FedEx Ground Economy, formerly SmartPost, will see an average increase of 26%!

That’s why it’s never been more important to negotiate your 2022 shipping contracts. It’s not too late to take action. If you haven’t renegotiated, now is the time to do so!  Following are three steps you can take to get started:

  • Check out the article by Reveel’s co-founder and CEO Josh Dunham in the current issue of PARCEL Magazine on page 16. “How to Negotiate Your Contracts in 2022 and Beyond” is a five-minute read that provides a valuable overview of proven strategies that will help you save money on shipping in the coming year;
  • Sign up for a free Reveel Impact Analysis to learn how the 2022 rates and terms from FedEx and UPS will impact your business by visiting; and
  • Contact us at contact us to speak with an expert who can help you put Reveel’s Shipping Intelligence to work for your company.

The Reveel App uses AI and machine learning to provide an unparalleled look into what’s impacting your bottom line. Through invoice audits, peer benchmarking, and rate modeling/simulations, you can see the health of your operation and assess pricing changes from parcel carriers like FedEx and UPS. Sign up for a free Reveel account today to see how you can leverage automation to synthesize your data, ship more for less, and reduce the time needed to identify issues and action items.

Sign Up - Free