The price of shipping keeps rising. On September 15th, FedEx announced its rates for 2016 are going up by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services effective Monday, January 4, 2016. FedEx Express, FedEx One Rate® , FedEx® Retail Rates, FedEx Ground, FedEx Home Delivery®, FedEx SmartPost® and FedEx Freight rates will also increase.
Just nine months after the last fuel surcharge adjustment, FedEx is once again modifying its fuel surcharge index effective November 2. Fuel surcharges will change to: Express/International increases of 1.5% to 1.75% and Ground increases of .5% to 1%.
FedEx will also increase surcharges for shipments that exceed the published maximum dimensions in the FedEx Ground network ahead of peak season. The surcharge will rise 91%, from $57.50 to $110 and will apply to large FedEx Ground packages. Make note of this increase if your packages weigh more than 150 pounds, 9 feet in length, or 13 feet 9 inches in length and girth combined. FedEx characterizes these as “unauthorized packages” because they exceed allowable dimensions.
Is FedEx seeking to price over-sized packages out of its network? They require manual handling since they are too large for automated sorting systems and are generally more expensive and time consuming to process. Fewer and fewer shippers will be shipping these packages given this price hike. Many of these packages are so bulky that alternative shipping methods might not be an option.