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FedEx Announces Largest General Rate Increase In Its History

October 25, 2022 Chase Flashman

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FedEx announced that it would be increasing its rates by 6.9%, effective January 2, 2023. This is their largest general rate increase (GRI) in history, following a 4.9% annual increase from 2012-2021, and a 5.9% increase for 2022 citing Covid for the hike.

FedEx EVP and Chief Customer Officer, Brie Carere, stated that this increase is “their response to inflationary pressures on our costs” and FedEx saw lower than expected package volume for this past quarter and fiscal year.

To account for the lower package volume, FedEx is consolidating its “package sortation operations, deferring or canceling Ground facility projects and reducing linehaul expenses” to reduce costs by up to $2.7 billion in fiscal year 2023.

 

About the GRI:

2023 Standard List Rates

Effective Jan 2, 2023

Rates are increasing exponentially by zone distance

Rates are increasing more for the longer zones (6-8) than for the closer ones.

For the full list visit FedEx.

 

2023 Changes to Express and Ground Surcharges & Fees

Effective Jan 2, 2023

Surcharge Service 2023 Rate % Increase YOY
Additional Handling U.S. Express Package Services, U.S. Ground Services 

Dimension:

Zone 2: $18.50 per package
Zones 3-4: $20.50 per package
Zones 5-6: $22.50 per package
Zone 7+: $25 per package

 

17.5%
17.1%
15.4%
16.3%

Address Correction

U.S. Express Package Services, International Express Package Services, International Express Freight Services, U.S. Ground Services, International Ground Service

$21 per correction

7.7%

Home Delivery FedEx Home Delivery

$4.10 per shipment (Date Certain)

$9.25 per shipment (Evening)

$21 per shipment (Appointment)

7.9%

6.9%

7.7%

Ground Unauthorized U.S. Ground Services,
International Ground Service
$1,150 per package 12.2%
Inside Pickup/Delivery Charge U.S. Express Freight Services Greater of $132.50 per shipment or $0.087 per lb. 7.4%
Oversize Charge  FedEx Home Delivery Zone 2: $160 per package
Zones 3–4: $170 per package
Zones 5–6: $190 per package
Zones 7+ : $200 per package
18.5%
17.2%
18.75%
17.6%
Residential Delivery  FedEx Home Delivery $5.15 per package 8.4%

 

FedEx-GRI-Rates

For the full list of surcharge changes visit FedEx.


2023 Delivery Area Surcharge changes

Effective Jan 30, 2023

UPS introduced this for 2022, and FedEx is following suit for 2023.

Almost 4,000 zip codes in the contiguous United States will see a $13.25 fee added for any delivery starting January 30, 2023.

For the full list of affected zip codes click here.

 

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