What you NEED to know about FedEx®’s 2022 rate increase

FedEx® has published their General Rate Increase for 2022, and it includes some budget-busting increases and new surcharges. It’s critical for shippers to understand the changes and their cost impact, so ConData is breaking down the key takeaways below.

Major Package Rate Increases:

 

  • 5.9% increase on their package rates for 2022 – a full percent more than the annual 4.9% that has been standard since 2015.
  • 7.5% increase on 1-5lbs Ground shipments.
  • 7.5% increase on Priority and Standard Overnight for Zones 2-4.
  • Ground minimums rose to $9.36, a 6.8% increase on 2021’s minimum of $8.76.

New surcharges and fees continue to proliferate and will drive up cost substantially in 2022 –especially eCommerce shipping and return costs.

  • NEW – Effective January 17, 2022, a $1.00 Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services. The surcharge applies to both delivery and return resulting in $2 per round trip.

  • NEW – Effective January 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge of $77, applicable when a pickup is performed and no shipment is tendered.

  • NEW – Effective January 17, 2022, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services. FedEx will roll out three tiers (below) and will provide an applicable list of U.S. ZIP and international postal codes or cities on September 30th, 2021.

    • Tier A: $3.55 per shipment

    • Tier B: Greater of $45 per shipment or $0.45 per lb.

    • Tier C: Greater of $59 per shipment or $0.59 per lb.

  • NEW – Effective January 24, 2022, Additional Handling Surcharge and Oversize Surcharge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone, mirroring UPS’s zonal structure announced mid-2021.

    • Additional Handling surcharges depending on the zone, weight and packaging will increase up to 34.4%, 23.5% and 28.5% respectively.
    • Ground and Express Oversize surcharges will increase to 38%, Home Delivery 30%

Full FedEx Details Here

It’s nearly impossible to keep up with all the carrier changes and forecast the true cost impact. What if you could have an industry expert provide market insights and true-cost analysis to help understand and mitigate these continued surcharges?

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