Effective January 2, 2023, 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 6.9%. FedEx Freight rates will increase by an average of 6.9%-7.9%. We will explore the 2023 FedEx surcharge increases in this blog.
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Surcharge | 2021 Price | 2022 Price | 2023 Price | 2023 Increase |
Address Correction | $18.00 | $19.50 | $21.00 | 7.7% |
COD | $16.50 | $17.50 | $19.00 | 8.6% |
Dangerous Goods (dry ice) | $6.15 | $6.55 | $7.05 | 7.6% |
Ground Unauthorized Package Charge | $920.00 | $1,025 | $1,150 | 12% |
Additional Handling | ||||
– DIM (Dimension) | $16.00 | $15.75 – $21.50 | $18.50 – $25.00 | 17% |
– Weight | $25.50 | $25.25 – $31.50 | $29.00 – $36.00 | 15% |
– Packaging | $14.00 | $14.00 – $18.00 | $16.50 – $21.00 | 18% |
Delivery Area Surcharge | ||||
– Express – Commercial | $3.25 | $3.55 | $3.70 | 4.2% |
– Express – Extended Commercial | $3.85 | $4.25 | $4.50 | 5.9% |
– Express/Ground – Residential | $4.70 | $5.20 | $5.55 | 6.7% |
– Express/Ground – Extended Residential | $5.90 | $6.50 | $7.15 | 10% |
– Ground – Commercial | $3.10 | $3.40 | $3.70 | 8.8% |
– Ground – Residential | $4.40 | $4.80 | $5.30 | 10% |
– Ground – Extended Commercial | $3.70 | $4.10 | $4.50 | 9.8% |
– Home Delivery – Residential | $4.30 | $4.80 | $5.30 | 10% |
Oversize Charge | ||||
– Express/Ground | $105.00 | $110 – $145 | $135 – $170 | 23% |
– Home Delivery | $130.00 | $135 – $170 | $160 – $200 | 19% |
Residential Surcharge | ||||
– Express & International | $4.95 | $5.30 | $5.80 | 9.4% |
– Ground | $4.80 | $5.20 | $5.50 | 5.8% |
– Home Delivery | $4.35 | $4.75 | $5.15 | 8.4% |
Signature | ||||
– Adult Signature | $6.70 | $7.15 | $7.65 | 7.0% |
– Direct Signature | $5.55 | $5.90 | $6.35 | 7.6% |
Third-Party Billing Service | 4.5% | 4.5% | 4.5% |
FedEx Shipping Changes to Minimum Net Charges
Consequently, the FedEx Ground and Home Delivery minimum net charge will also increase. The 2023 FedEx rate for the minimum net charge will go from $9.36 to $10.10. This is an increase of 7.91%. In contrast, the 2021 increase was just 6.44%, and the 2022 increase was 6.85%. The first thing to remember, both carriers implement a minimum net charge for ALL packages. This is the most inexpensive amount a shipper will pay to send any package.
The 2023 FedEx rate for the minimum net charge will go from $9.36 to $10.10. This is an increase of 7.91% for 2023. 2022 had an increase of only 6.85%.
Here is a PDF with all FedEx standard list rates for 2023. We will be analyzing these rate increases in an upcoming blog. Stay tuned!
Other 2023 FedEx Rate Increase Changes
FedEx will increase the late payment fee to 8% for invoices not paid according to approved payment terms. A Delivery Area Surcharge of $13.25 per package will also apply to domestic package shipments for select ZIP codes within the contiguous U.S. that are designated as remote.
Lessen the 2023 FedEx Rate Increase impact on your company
All companies must explore viable options to minimize the 2023 FedEx surcharge increases. The best option is late delivery auditing with Refund Retriever’s late package refund technology. We will monitor all shipping activity and have refunds credited back to your FedEx and UPS 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 an expert reevaluated your FedEx agreement? Which surcharges impact your shipping the most? Are you getting the best reductions? These are critical questions that every shipper needs to know in detail. Our parcel experts will undoubtedly assist your logistics manager in navigating the 2023 FedEx surcharge increase.