Delivery Area Surcharge – Home Delivery – 10.4% Increase.Here is a brief overview of some of FedEx’s actual increases for some of the more common surcharges. The above package rate increases are also subject to a variety of surcharges that are also increasing.
Two Day Delivery, 25 Pound Package to Zone 5 – Actual Increase will be 8.9%.Standard Overnight, 10 Pound Package to Zone 3 – Actual Increase will be 8.5%.Priority Overnight, 5 Pound Package to Zone 2 – Actual Increase will be 8.5%.Ground Service, 2 Pound Package to Zone 5 – Actual Increase will be 7.6%.To put these increases into perspective, the following are some examples of what the “Actual” increase FedEx parcel shippers will experience. The FedEx rates will go into effect on January 2, 2023, shortly after parcel shippers incur the Peak Season shipping surcharges, which can also have an unexpected impact on Shippers bottom line profits. Parcel shippers really need to take the time to analyze their individual shipping characteristics to see exactly what the impact will be on their freight costs going into 2023. And yet, you would be amazed at how many companies use the average increase figure for their annual shipping budgets. Shippers should not be fooled into thinking the actual increase is 6.9% across the board. It’s important to remember that the term “On Average” means some increases will be less than the 6.9% in certain categories, and some will of course be much higher than 6.9%.
So, we expect that UPS will announce similar GRI’s in the near future. We have no reason to believe that this year will be any different. Historically UPS’s GRI levels have matched or been very close to those announced by FedEx. This year, FedEx is increasing their Annual “AVERAGE” GRI to 6.9%. For 2022, FedEx jumped their annual “AVERAGE” GRI from the previous year’s 4.9% to 5.9%. With all of the recent negative operational and financial news surrounding FedEx, it is not surprising that FedEx’s “AVERAGE” General Rate Increase for this coming year is significantly higher than it has been in the past. The magnitude of the announced FedEx increases comes as no surprise to us. To start, this year’s parcel carrier GRI notices have been led by FedEx and of course as we all know, this is just the beginning of next year’s GRI notifications. Well, it’s that time of year again when we start to receive notices of General Rate Increases (GRI’s), for the major freight carriers.
Everything you need to know about the new FedEx GRIs
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