Shipping items with FedEx is getting more expensive due to the FedEx price increase. FedEx announced an average general rate increase of 4.9% starting January 7, 2019. This is the same average increase FedEx implemented in 2018. We will calculate the actual price increase for each service in a later blog.
FedEx Price Increase: Surcharges
|Additional Handling Surcharge (Dimension)||Express & Ground Services||$12||$13.50|
|Address Correction||Express & Ground Services||$15||$16|
|Dangerous Goods (dry ice)||Express Package Services||$5.25||$5.55|
|Delivery Area Surcharge||Express & Ground (Residential)||$4||$4.20|
|Express & Ground (Extended Residential)||$4.40||$4.65|
|Express (Commercial, Extended Comm)||$2.70||$2.85|
|Ground (Commercial, Extended Comm)||$2.55||$2.70|
|Collect on Delivery (C.O.D.)||Express Package Services||$13.50||$14.50|
|Delivery Signature Options (Adult)||Express Package Services||$5.75||$6.05|
|Delivery Signature Options (Direct or Indirect)||Express Package Services||$4.75||$5|
|FedEx Print Return Label||Express Package Services||$0.50||$1.00|
|Oversize Charge||Express Package Services||$80||$90|
|Residential Delivery Charge||Express & Ground Services||$4.15||$4.40|
|FedEx Home Delivery||$3.60||$3.80|
FedEx Minimum Net Charges
The FedEx ground and home delivery minimum charge will go from $7.58 to $7.85. This is an increase of 3.6%. Remember, the carriers apply a minimum net charge to all packages, this is the lowest amount a shipper will pay to send any package.
Here is a PDF with all FedEx standard list rates for 2019. We will be analyzing these rate increases in an upcoming blog. Stay tuned.
Lessen the FedEx price increase impact on your company
All companies need to explore all viable options to help minimize the impact of the 2019 FedEx price increase on their supply chain. One option is late delivery auditing, Refund Retriever’s late package refund technology will monitor all of your shipping activity to have money credited back to your carrier invoices.
Another option is a full carrier agreement analysis. Refund Retriever’s contract experts will assess your current carrier agreements and parcel spend. Our free benchmark analysis is a great place to start. When was the last time your agreement was reviewed by industry experts? Which surcharges cost you the most? Are your shipments packaged cost effectively? Are you getting the best discounts possible? Let our team help your logistics manager.
FedEx and UPS do not make identifying and submitting claims easy. Lucky for you the programming geeks at Refund Retriever have automated the late delivery refund logistics no matter how many packages your company ships each day. Cut costs and ship smart with Refund Retriever.
Check out Part 2!