2021 presented logistical challenges for businesses across the board. Rising inflation, shipping delays, and labor shortages are just a start to the laundry list of problems that created the perfect storm for an unpredictable shipping environment. And amongst the chaos, FedEx continues to pass on these challenges to their customers to pad their bottom line. But don’t worry, we are here to help. Let’s take a look at what is in store for 2022.
FedEx Rate Increase For 2022
On January 3rd, 2022, FedEx will enact a general rate increase, or GRI, of 5.9% on all ground and air services. However, our data scientists have reviewed these changes, and found that shippers should expect to see much higher increases depending on the surcharges and minimums that FedEx is trying to sweep under the rug. To see how your business will be affected by these rate increases, download our Fedex Rate Change Guide to get informed.
Historical FedEx Rate Increases
In 2021 and 2022 forecasts, FedEx is servicing unprecedented levels of business. For the customer, this highlights a shift in the power dynamic, given FedEx is less concerned about customer retention. This enables carriers to raise rates and add fees at will. The table below gives a preview into FedEx’s general rate increases over the last 10 years.
|Year||FedEx Air||FedEx Ground|
What’s New in 2022
On top of the 5.9% rate increase, there are a few unique changes to note this year. Here are some highlights:
- Several surcharges, like additional handling and oversize packages, will begin segmenting rates by zone.
- A new fuel surcharge will go into effect on November 1, 2021.
- 2021’s peak surcharges will be assessed at two points in the holiday season.
So what does this information suggest?
It’s Time to Prepare For Rising Fees
There’s no getting around it—it’s a near guarantee that your business will be affected by these rate increases. While it’s unfortunate that FedEx continues to prioritize profits above all else, there’s something you can do about it.
Don’t be caught off guard. Tap into Reveel’s Shipping Intelligence® platform to:
- Forecast how these changes will affect your shipping costs
- Audit your invoices to recoup any and all refunds
- Identify the fees you should negotiate to make the biggest impact on your bottom line
Now that FedEx has published their base rates, Reveel is offering a free impact analysis using our Shipping Intelligence Platform and your unique shipping profile. Be sure to sign up for our Essential Edition (free) now and be ready to see what impact the General Rate Increases will have on your shipping expense when the increases go into effect on December 26, 2021.
Sign up for the FREE version of the Shipping Intelligence platform today.