The pace of parcel costs is fast, and the fine-print details of FedEx contracts often change just as quickly. Keeping this in mind, how can businesses keep up with the rapid pace of parcel changes that directly impact their operations? FedEx contract negotiation.
Regularly reviewing carrier contracts from FedEx is necessary to support shipping efficiency and expenses best. Shipping contract negotiation is enormous. Contract negotiation is critical, considering that carriers announce rate increases annually. FedEx experienced an average rate increase for ground delivery of 4.9% in 2025, among other increased rates. Because of this, it’s critical to consider how these changes impact your business – as well as identify what you can do to help combat increased shipping spend.
To help navigate the often challenging and always complex realities of carrier contracts, consider how the following five tips can help.
Tip #1: Review Past Data & Past FedEx Contract Negotiations
It’s impossible to identify where you can save money or strengthen operations without reflecting on your shipping history and parcel expenses. To avoid this potential setback, review data from your shipping history to gain insight into your most frequent shipping zones, package weights, and other factors influencing shipping spend. Collectively, this data can clarify your shipping habits while also helping to identify characteristics and rates that are important to you from your carrier or carriers of choice.
Tip #2: Identify Frequently Used Accessorial Fees
Eliminating or reducing extra expenses is a great starting point for saving money. These additional fees are accessorial fees for carriers such as UPS and FedEx and can add up quickly. As a result, you must understand where, when, and why you spend dollars on these extra charges. Then, aim to negotiate savings on these in your contract negotiation. You should review the accessorial fees, including charges for residential deliveries, additional handling, signature requirements, and more. For a more comprehensive view of your accessorial costs, click here.
Tip #3: Benchmark Competitor Rates and Services
Preparation does not go unnoticed during a FedEx contract negotiation. Understand what competitors offer so that you can confidently identify where and why you deserve a negotiated rate. Your carrier representative will not overlook your knowledge of these details. As a result, it should help you secure better rates within your carrier contracts. After all, your carriers know that if you don’t give your business to them… you absolutely will to someone else.
Tip #4: Timelines and Clear expectations for YOUR FedEx Contract Negotiation
Did you know you can start a FedEx contract negotiation anytime? There’s no need to wait until it’s expired or nearing its expiration. This perk is a benefit to shippers, yet it is too often not taken advantage of. Don’t let carriers dictate what you want from them. Set your expectations, including a timeline, during your FedEx contract negotiation. And on that note, don’t get locked into a contract that puts you into a timeline that prohibits changes or charges if you terminate an agreement early. The details of a contract are complex, but make sure these details are not among them before you sign anything.
Tip #5: Keep the FedEx Money-Back Service Guarantee
Never sign away your right to negotiate a contract at any time or exit a carrier agreement. Also, never sign a contract that prevents you from receiving refunds or getting money back when deserved. When it comes to carrier shipping contract negotiations, the details matter. The details of capturing dollars are something you want to ensure your company gets through parcel auditing. Late package refund auditing is an easy way to reduce shipping overhead while strengthening shipping efficiency. However, carriers dislike it when companies discover they are owed money that has already been spent with the carrier. Carrier incompetency shouldn’t impact your contracts. Explore more about parcel auditing here.
Finally, a successful FedEx contract negotiation is essential to shipping success. But it’s ultimately the review of the proposed agreement that will make or break your negotiation success. Fine print details can be confusing – not to mention boring. Consider how an expert can help bring clarity to this complicated process. The result can save you time… but also headaches and dollars. Reveal shipping intelligence and expert insight here.
