Effective January 4, 2021, all FedEx shippers will experience shipping rate changes. It is important to note that FedEx Express, Ground, and Home Delivery shipping rates will increase by an average of 4.9%. Also, beginning January 2021, FedEx will charge a 6% late fee. This late fee will apply to customers who don’t pay their invoices within their agreed-upon payment terms.
|Surcharge||2019 Price||2020 Price||2021 Price||2021 Increase|
|Dangerous Goods (dry ice)||$5.55||$5.85||6.15||5.1%|
|Ground Unauthorized Package Charge||$675.00||$875.00||$920.00||4.9%|
|– DIM (Dimension)||$13.50||$15.00||$16.00||6.7%|
|Delivery Area Surcharge|
|– Express – Commercial||$2.85||$3.10||$3.25||4.8%|
|– Express – Extended Commercial||$2.85||$3.60||$3.85||6.9%|
|– Express/Ground – Residential||$4.20||$4.40||$4.70||6.4%|
|– Express/Ground – Extended Residential||$4.65||$5.40||$5.90||9.3%|
|– Ground – Commercial||$2.70||$2.95||$3.10||5.1%|
|– Ground – Extended Commercial||$2.70||$3.45||$3.70||7.2%|
|– Home Delivery – Residential||$3.65||$4.00||$4.30||7.5%|
|– Home Delivery||$90.00||$120.00||$130.00||8.3%|
|– Express & International||$4.40||$4.65||$4.95||6.5%|
|– Home Delivery||$3.80||$4.00||$4.35||8.8%|
|– Adult Signature||$6.05||$6.35||$6.70||5.5%|
|– Direct Signature||$5.00||$5.25||$5.55||5.7%|
|Third Party Billing Service||2.5%||4.5%||80%|
Shipping Changes to Fuel Surcharge
FedEx also announced that from February 1, 2021, they will also be making changes to how fuel is assessed for U.S FedEx Express Freight shipments. The fuel surcharge for U.S. Domestic Express Freight services will be a charge per pound assessed on the rated weight of the shipment. The charge per pound will be subject to weekly adjustments based on the weekly published USGC price for a gallon of kerosene-type jet fuel.
FedEx Shipping Changes to Minimum Net Charges
Consequently, the FedEx Ground and Home Delivery minimum net charge are also going to increase. The 2021 FedEx rate for the minimum net charge will go from $8.23 to $8.76. This is an increase of 6.44%. In contrast, the 2020 increase was just 4.84%. The first thing to remember, the carriers implement a minimum net charge to ALL packages. This is the most inexpensive amount a shipper will pay to send any package.
The 2021 FedEx rate for the minimum net charge will go from $8.23 to $8.76. This is an increase of 6.44% for 2021. 2020 had an increase of only 4.84%.
Here is a PDF with all FedEx standard list rates for 2021. We will be analyzing these rate increases in an upcoming blog. Stay tuned!
Other 2021 FedEx Changes
Equally important, FedEx will change the criteria for packages subject to additional handling surcharges. In 2020, the surcharge for weight with Express and Ground domestic packages applies if a package has an actual weight greater than 50 lbs. For 2021, there will be additional changes to how additional handling charges are assessed.
Also, FedEx Freight will introduce a High-Cost Service Area Surcharge. This will be applied to shipments under a certain classification of base rates and select ZIP Codes. Plus FedEx will charge a 6% late fee to FedEx customers who don’t pay their invoice within the payment terms. UPS has had a rule like this in place for years. Service Guide pricing for FedEx One Rate will change.
Lessen the 2021 FedEx shipping rate changes impact on your company
All companies need to explore all viable options to minimize the 2021 FedEx shipping rate changes. The best option is late delivery auditing with Refund Retriever’s late package refund technology. We will observe all shipping activity and have refunds credited back to your invoices.
Another option is to perform a full carrier agreement analysis. Refund Retriever’s contract experts will assess your current carrier agreements and parcel spend.
When was the last time experts reviewed your FedEx and UPS agreement? Which surcharges impact your shipping the most? Are you getting the best reductions possible? These are essential questions that every shipper needs to know in detail. Our team of parcel experts will undoubtedly help your logistics manager navigate the 2021 FedEx rate changes.