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FEDEX REFUNDSUPS REFUNDS

2020 FedEx Shipping Rate Changes, Part 1: Surcharges

By Last updated on: November 13, 2019

Effective January 6, 2020, businesses need to expect FedEx shipping rate changes. Furthermore, it has been announced that prices will be going up again in the new year. It is important to note that FedEx Express, Ground, and Home Delivery shipping rates will increase by an average of 4.9%. In addition, FedEx Freight shipping rates will increase by an average of 5.9%.

 Surcharge2019 Price2020 Price2020 Increase
Address Correction$16.00$17.006.2%
COD$14.50$15.506.9%
Dangerous Goods (dry ice)$5.55$5.855.4%
Email Return Label$1.00$1.055.0%
Ground Unauthorized Package Charge$675.00$875.0029.6%
Additional Handling
– DIM (Dimension)$13.50$15.0011.1%
– Weight$20.00$24.0020.0%
– Packaging$12.00$13.008.3%
Delivery Area Surcharge
– Express – Commercial$2.85$3.108.8%
– Express – Extended Commercial$2.85$3.6026.3%
– Express/Ground – Residential$4.20$4.404.8%
– Express/Ground – Extended Residential$4.65$5.4016.1%
– Ground – Commercial$2.70$2.959.3%
– Ground – Extended Commercial$2.70$3.4527.8%
– Home Delivery – Residential$3.65$4.009.6%
Oversize Charge
– Express/Ground$90.00$100.0011.1%
– Home Delivery$90.00$120.0033.3%
Residential Surcharge
– Express/Ground/International$4.40$4.655.7%
– Home Delivery$3.80$4.005.3%
Signature
– Adult Signature$6.05$6.355.0%
– Direct Signature$5.00$5.255.0%

Shipping Changes to Fuel Surcharge

The 2020 FedEx shipping rate changes in regards to fuel surcharge will be assessed on the following additional surcharges:

FedEx Express shipments: 

  • Additional Handling Surcharge
  • Additional Handling Surcharge – Non-stackable
  • Delivery Signature Options
  • Collect on Delivery and Peak – Additional Handling Surcharge

FedEx Ground shipments: 

  • Additional Handling Surcharge
  • Delivery Signature Options
  • Ground C.O.D.
  • Ground Electronic C.O.D.
  • Home Delivery Convenient Delivery Options
  • Peak – Additional Handling Surcharge

FedEx Shipping Changes to Minimum Net Charges  

Consequently, the FedEx Ground and Home Delivery minimum net charge are also going to increase. The 2020 FedEx rate for the minimum net charge will go from $7.85 to $8.23. This is an increase of 4.84%. In contrast, the 2019 increase was just 3.6%. The first thing to remember, the carriers apply a minimum net charge to ALL packages. This is the lowest amount a shipper will pay to send any package.

The 2020 FedEx rate for the minimum net charge will go from $7.85 to $8.23. This is an increase of 4.84%.

2020 FedEx Shipping Rate Changes

Here is a PDF with all FedEx standard list rates for 2020. We will be analyzing these rate increases in an upcoming blog. Stay tuned!

Other 2020 FedEx Changes

Equally important, FedEx will change the criteria for packages subject to additional handling surcharges. In 2019, packages that weighed 71 lbs and more were subject to this fee. Effective January 2020, the surcharge for weight with Express and Ground domestic packages applies if a package has an actual weight greater than 50 lbs.

ServiceAvg Rate Increase
Express 4.90%
Ground and Home Delivery4.90%
U.S. Freight5.90%

Lessen the FedEx shipping rate changes impact on your company  

All companies need to explore all viable options to minimize the impact of the 2020 FedEx shipping rate changes. The best option is late delivery auditing with Refund Retriever’s late package refund technology. We will monitor all shipping activity and have the money credited back to your carrier invoices.

Together with parcel auditing, another option is to perform a full carrier agreement analysis. Refund Retriever’s contract experts will assess the current carrier agreements and parcel spend. Our free benchmark analysis tool, specifically, is the perfect place to start. 

When was the last time your agreement was reviewed by experts? Which surcharges cost you the most? Are your shipments packaged cost-effectively? Are you getting the best discounts possible? These are important questions that every shipper needs to know their answers in detail. Our team of parcel experts will certainly help your logistics manager navigate the 2020 FedEx shipping rate changes.

Conclusion  

FedEx and UPS do not make identifying and submitting claims easy. For the most part, both carriers are trying to make last-mile delivery more profitable. Lucky for you the programming geeks at Refund Retriever have automated the late delivery refund logistics. To summarize, no matter how many packages your company ships each day, Refund Retriever can cut costs. Let us help minimize the 2020 FedEx shipping rate changes.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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