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FedEx Announces the Largest Rate Increase In Years. Want to see exactly how it will impact your bottom line?

Assuming you’ve already seen the substantial General Rate Increase FedEx announced for 2022, you’re probably wondering how this will affect your shipping budget.

In addition to the numerous COVID-19 related surcharges FedEx enacted in the last two years, the carrier will also increase rates by a whopping 5.9%. 

Be on the lookout for new surcharges and an increased fee structure for existing surcharges. For example, a fuel surcharge will go into effect on November 1, 2021, with variable rates depending on market fuel prices. 

Next year, FedEx is also changing how they assess some of their fees. They’re introducing zone-based pricing for some surcharges, such as additional handling and oversize package fees. This means some packages could actually see a decrease, while others go up as much as 30%.

With FedEx’s rate guides notoriously difficult to decipher, we’ve compiled the increases into an easy-to-use guide. 

Get your copy of the 2022 FedEx General Rate Increase Guide today.

Download the guide to see:

  • Rate increases for common surcharges
  • FedEx pricing trends over the last 10 years
  • How to forecast shipping costs with the new rates

Spoiler Alert: Once FedEx and UPS have both published their base rates, Reveel will be 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.

FedEx Announces MORE Surcharges on U.S. Express, Ground, and Ground International

This is the second surcharge increase this month from FedEx. This time the surcharges are on U.S. Express and Ground services and Ground International.   Additionally, the peak fuel surcharge tables have been updated to reflect a higher fuel surcharge.  

If you’re worried about how this might impact you, the Reveel Shipping Intelligence® platform can give you peace of mind with Agreement Monitoring so you can easily stay on top of your shipping costs and service fees.  You can easily book a demo here.

 

Here is a summary of the additional surcharges taking effect on June 21, 2021:

  • Peak Additional Handling increasing from $3 to $3.50/per charge
  • Economy Ground (previously SmartPost) increasing from $0.75 to $1.00/per shipment
  • Residential (for shippers over 30,000 packages/week) doubles from $0.30 to $0.60/per residential
  • Fuel Surcharge tables are changing to increase Fuel Surcharge %
The new fuel tables (effective 6/21/2021) can be found here https://www.fedex.com/en-us/shipping/fuel-surcharge.html

To quote the FedEx Surcharge announcement:

Customers at the enterprise level who meet a certain volume threshold (as indicated below) will be charged a Peak — Residential Delivery Charge. The scope of a customer’s volume shall be determined by FedEx in its sole discretion. The Peak — Residential Delivery Charge will be assessed in addition to the customer’s Residential Delivery Charge. Any contracted discount or cap the customer may have on the Residential Delivery Charge will not apply to the Peak — Residential Delivery Charge. For invoicing purposes, this charge will be combined with the customer’s current Residential Delivery Charge.  See The Complete List Of Current Surcharges From FedEx

FedEx Announces Surcharges on International Shipments

As COVID-19 was beginning to impact the global supply chain, FedEx responded in April 2020 by implementing a surcharge on all FedEx Express® and TNT international parcel and freight shipments beginning April 6, 2020.

This surcharge made logical sense as containment restrictions among the various countries around the world disrupted the global supply chain. As air cargo capacity became limited, FedEx passed the incremental costs in a tough economic environment. Now, roughly a month after announcing record-breaking revenue, FedEx announced additional surcharges on FedEx Express and TNT international parcel and freight shipments. Beginning May 10, 2021, the Peak Surcharge for freight shipments for certain origin/destination country combinations will increase. Refer to the table below for changes:
Origin Country

Service

Destination Country

Current Surcharge USD per LB / KG

New Surcharge USD per LB / KG1

U.S. Freight only* Australia; Guam; Indonesia; Macau SAR, China; Malaysia; New Zealand; Philippines Thailand; Vietnam​

$0.35 / $0.77

$0.35 / $0.77 

U.S.  Freight only APAC (except: Australia; Guam, Indonesia; Macau SAR, China; Malaysia; New Zealand; Philippines; Thailand; Vietnam​), MEISA, LAC

$0.10 / $0.22

$0.35 / $0.77

Canada Freight only U.S., LAC, MEISA, APAC

$0.10 / $0.22

$0.35 / $0.77

India Parcel and freight* Australia, New Zealand, Malaysia, South Korea

$0.90 / $2.00

$0.90 / $2.00

MEISA (including India) Freight only U.S., Canada, Mexico

$0.10 / $0.22

$0.35 / $0.77

Europe2 Freight only U.S., Canada

$0.10 / $0.22

$0.39 / $0.85

Japan Parcel and freight* Australia, New Zealand, Guam, Brunei, American Samoa, Cambodia, Cook Islands, East Timor, Fiji, French Polynesia, Laos, Marshall Islands, Micronesia, Mongolia, New Caledonia, Palau, Papua New Guinea, Saipan, Samoa, Tonga, Vanuatu, Wallis and Futuna 

$1.13 / $2.50

$1.13 / $2.50

China Parcel and freight* Australia, New Zealand, Brunei, Guam, Cambodia, Laos

$1.13 / $2.50

$1.13 /$2.50

Philippines, Vietnam Parcel and freight* Australia, New Zealand, Cambodia, Laos, Mongolia

$1.13 / $2.50

$1.13 / $2.50

Hong Kong SAR, China Parcel and freight* Australia, New Zealand, Brunei

$1.13 / $2.50

$1.13 / $2.50

Hong Kong SAR, China; and Macau SAR, China Freight only U.S., Canada, Mexico, Puerto Rico

$0.90 / $2.00

$1.60 / $3.52

Indonesia; South Korea;  Malaysia; Singapore; Thailand; Taiwan, China Parcel and freight* Australia, New Zealand

$1.13 / $2.50 

$1.13 / $2.50

Taiwan, China Freight only U.S., Canada, Mexico, Puerto Rico, Guam

$0.45 / $1.00

$0.90 / $2.00

Indonesia, Malaysia, Singapore, Thailand, Australia, Philippines, Vietnam Freight only U.S., Canada, Mexico, Puerto Rico

$0.45 / $1.00

$0.90 / $2.00

New Zealand Freight only U.S., Canada, Mexico, Puerto Rico and other destinations3

$0.45 / $1.00

$0.90 / $2.00

Parcel Min. Charge: $1.00 per Shipment Freight Min. Charge: $50.00 per Shipment

*Amounts under the current surcharge columns became effective April 19, 2021.

1Actual surcharge amount or minimum charge may vary depending on fluctuations in the currency used to calculate the invoice.

2Changes go into effect on May 17, 2021.

3Antigua, Anguilla, Aruba, Barbados, Bonaire, Bahamas, Curacao, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, St. Kitts and Nevis, Cayman Islands, St. Lucia, St. Maarten/St. Martin, Martinique, Montserrat, Sint Maarten, Turks and Caicos Islands, Trinidad and Tobago, St. Vincent, British Virgin Islands, St. Croix (U.S. Virgin Islands), American Samoa, Cook Islands, French Polynesia, East Timor, Tonga, Samoa.

See The Complete List Of Current Surcharges From FedEx
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