FedEx has an annual revenue of $93.5 billion. Next year, the annual revenue will be even more significant due to FedEx’s yearly general rate increase. The 2024 FedEx General Rate Increase will go into effect on January 1, 2024. FedEx Express shipping rates will increase by an average of 5.9% for Domestic, Export, and Import services. FedEx SmartPost shipping rates will also increase.
The chart above illustrates the 2024 FedEx price increase over the 2023 published rates for each domestic service. The largest increases are 2-Day A.M. and 2-Day Saver packages. The increase is close to 7%.
Express Saver delivers to businesses by 4:30 p.m. and to residences by 8 p.m. in three business days. Many eCommerce sellers use Express Saver to meet the demands of today’s online buyers. The Amazonification of buyers’ decisions fuels the shift from Ground to Express. In summary, “Amazonification” is authentic, causing sellers to pay more on shipping to remain competitive.
FedEx Ground Price Increases
The chart above illustrates the price increase in 2024 for FedEx Ground packages according to weight. The lowest average increase will be on packages weighing 81 to 100 pounds. Incidentally, these are rare among our clients. In conclusion, the most significant increase is in one to ten-pound shipments.
Home Delivery Rate Increases
FedEx Home Delivery has identical rates as FedEx Ground packages. But, there is an additional charge since the final delivery is to a residence. Therefore, Home Delivery packages are billed as if they were Ground packages but will see an additional $5.55 residential surcharge.
Since the residential surcharge went up this year, we also analyzed the price increase with this fee applied. As you can see, the numbers change, and Home Delivery packages have a higher rate increase than Ground packages.
FedEx Express Rate Increases
The chart below shows the average price increase for all zones and weights for each Express domestic service. As you can see, the Second Day and Express Saver package increases are the highest.
As it is evident by all the charts, FedEx 2-day A.M. and Express Saver have the highest 2024 FedEx Rate Increase. The increase mimics the higher zone increases as Ground and Home Delivery packages.
Other 2024 FedEx Changes
Additionally, look out for the following changes:
- Effective January 1, 2024, FedEx will be increasing customs clearance service fees on imports.
- Effective January 15, 2024, FedEx will assess the Additional Handling Surcharge and Oversize Charge per eligible package for international multi-piece shipments rather than per shipment.
- Additional Handling Surcharge (Dimension, Weight, Packaging, Freight, and Non-Stackable) and the Oversize Charge will increase.
- FedEx Freight shipping rates will increase by an average of 5.9%-6.9%.
Minimize the Impact of the 2024 FedEx General Rate Increase
Most companies will willingly accept the 2024 FedEx General Rate Increase (GRI). They shift the additional logistics expenses to the client. This prompts potential buyers to abandon a full shopping cart due to excessive shipping costs. Therefore, FedEx users need to address price increases head-on. In addition, contact us at Refund Retriever to assess your shipping needs and help with full contract negotiation.
