Shipping Rates & Contract Negotiation
At ShipSigma we manage, analyze, and optimize over $1Billion in parcel spend to provide you with a deep understanding of the excess of fees your contract has built in and where savings exist. Using our industry-leading cost modeling software, we’ll provide you with a Shipping Savings Guarantee before you negotiate. Once negotiation begins, we'll provide you with a market-best carrier network strategy, contract management & compliance services, surcharge mitigation, and ongoing analysis and optimization opportunities.
We could not say enough good things about our relationship with ShipSigma. Beyond the initial savings, they continue to find us new angles for savings, set up dashboards specific to our needs, and meet with us quarterly to go through reporting/review savings/new opportunities. ShipSigma has been more than just a service for us, they have been a continuous partner as we navigate the difficulties of controlling our freight costs and holding the vendors accountable.
Tyler B. Vice President of Finance, Leading Global Manufacturer
4 hours. It took less than 4 hours of my time for my company to see half a million in annual savings. No headaches, no feet-dragging negotiations, no confusing documents. It was so easy.
Todd M. Vice President, Food Manufacturer and Distributor
The insights and analytics, ShipSigma provided before and after negotiating our carrier agreements, make it clear we have a long-term partner who is aligned with our company values. The cost modeling and rate simulation let us know the exact savings we would see, down to the last cent. After running our historical data, ShipSigma was able to find us almost 28% in annual shipping savings with our same carrier.
Jonica H. Controller, Market Leading Wine Distributor
Our team managed billions of dollars of various category spend. To have ShipSigma guarantee a savings and then fully execute so that we’re realizing increased EBITA within 60 days allows us to focus on other strategic opportunities.
Randy H. Chief Procurement Officer, Leading Provider of Pork Products
We thought we had the best rates. We were told we had the best rates. ShipSigma got us better rates. They found us nearly 25% in savings and helped us renegotiate our contract with our carrier. It was just so easy.
Brad M. Chief Operations Officer, Clothing Retailer
The parcel invoice audit was a lifesaver for us. The team at ShipSigma monitored the weekly audit and noticed that instead of shipping air, over 60% of our packages could have traveled ground with no delay in arrival. They saved us more money than we had ever saved in our manual audit process.
Julie F. Chief Financial Officer, Industry Leading Retailer
FedEx Shipping Cost Calculator
FedEx provides a rate guide in PDF format. However, the rates shown in the guides might not always be accurate since rates can change due to factors like: type of package, natural disasters, etc.
Fortunately, FedEx provides an online shipping cost calculator that can help you estimate the cost of your small parcel shipment based on various factors such as package weight, dimensions, destination, and preferred shipping service. Using the FedEx shipping cost calculator, you can get accurate rates and estimated delivery times.
How the FedEx Shipping Calculator Works
When you navigate to the FedEx shipping calculator page, you will find a form in which you will need to enter some information about your shipment, including:
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Enter the origin and destination zip codes.
Generally, the farther the destination of your package, the more you pay. When you enter the origin and destination zip codes, FedEx can determine the shipping zones where the source and destination lie. With this information, FedEx can produce an accurate estimate based on the distance to be covered.
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Declare if you need additional cover.
Sometimes, as a shipper, you may want additional protection for your goods. If you select this option in the FedEx calculator form, the applicable surcharge will be included in your shipping cost estimate.
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Enter the details of your shipment.
At this point, you will enter the following details:
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Package weight: The bigger and heavier your shipment is, the more it will cost.
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Package dimensions (optional)
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The number of packages shipped: The more you ship, the higher the cost.
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The type of packaging you're using (Your own or FedEx packaging). For more info on FedEx packaging, check FedEx's Boxes for packing, shipping & moving page and read packing tips from FedEx's packaging engineer.
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Enter shipping date
Enter the date you intend to send the package. The calculator gives you an estimate based on the day you're shipping. For example, sometimes shipping on the weekend is more expensive than on a weekday.
FedEx Shipping Rates FAQs
Does FedEx Price by Weight?
Yes, FedEx factors in a package's weight when determining shipping rates. Either the actual weight or dimensional weight of your package is used, whichever is greater. Keep this in mind when choosing a box; pick one that is big enough for your items but not so big that it increases your package's dimensional weight unnecessarily.
Is UPS or FedEx Faster for Overnight Shipping?
According to their websites, UPS and FedEx are equally as fast for overnight shipping. You can expect delivery by 8 A.M. the next business day with UPS Next Day Air Early and FedEx First Overnight (in most areas).
After finding your FedEx rates using the calculator, you may want to know — what are the shipping prices for UPS and USPS. You can easily find UPS shipping rates and USPS shipping rates for comparison purposes using their respective rate calculators:
Understanding FedEx 2 Day Shipping Cost
For businesses managing logistics and shipping operations, having clarity on shipping costs is crucial for budgeting and operational planning. FedEx 2 Day shipping offers a reliable option for rapid delivery, but understanding its cost structure is essential for making informed decisions. In this section, we will break down the factors influencing the FedEx 2 Day shipping cost and provide insights on how businesses can efficiently manage these expenses.
Factors Influencing FedEx 2 Day Shipping Costs
Several factors can affect the pricing of FedEx 2 Day services. Primarily, these include package weight, dimensions, and the delivery destination. The service is designed to offer second-day delivery at competitive rates, keeping in mind the urgency of delivery needs. FedEx calculates the shipping cost based on either the actual weight or the dimensional weight of the package, depending on which is greater. This approach encourages shippers to optimize their packaging to avoid paying for unused space.
Comparative Analysis of FedEx 2 Day Shipping
When comparing with other services like FedEx Ground or Express Saver, FedEx 2 Day often emerges as an optimal blend of speed and cost, especially for time-sensitive shipments that do not require overnight service. It's particularly advantageous for businesses that need quick delivery times but are also mindful of budget constraints. Additionally, businesses might weigh its benefits against similar offerings from competitors like UPS 2nd Day Air or USPS Priority Mail Express.
Strategies to Minimize FedEx 2 Day Shipping Expenses
Businesses looking to reduce their FedEx 2 Day shipping cost can adopt several strategies. Firstly, optimizing package dimensions and weight can significantly lower costs. Secondly, considering consolidation of shipments could also yield cost efficiencies. Additionally, negotiating shipping contracts with FedEx directly, possibly leveraging volume discounts or seasonal promotions, can further alleviate financial burdens.
In conclusion, while FedEx 2 Day shipping offers a valuable service for urgent delivery needs, businesses must approach this option strategically to manage costs effectively. By understanding the nuances of FedEx pricing and exploring cost-saving measures, companies can enhance their logistics operations without compromising on delivery standards.
What Are FedEx Ground Shipping Rates?
FedEx Ground is one of the most popular shipping services in the United States, providing affordable and reliable shipping options for businesses and individuals alike. First, let’s look at a few details about this shipping service. Then we'll dive into the FedEx ground shipping rates.
What Is FedEx Ground?
FedEx Ground is a low-cost shipping service that delivers packages to businesses by road transport. FedEx claims its ground shipping ships faster to more locations than UPS ground.
Shipping/Transit Time
For shipments within the 48 contiguous states, FedEx Ground delivers in 1-5 business days. Shipping to and from Alaska and Hawaii takes 3–7 business days. Check out FedEx Ground Service Maps for accurate delivery time estimates.
To keep you abreast with the progress of your shipment, FedEx tracking provides you with the real-time status and location of your package during transit.
Weight and Size Limits
FedEx Ground can ship packages weighing up to 150 lbs.
Maximum length: 108 inches.
Maximum length plus girth (L+2W+2H): 165 inches.
Delivery Area
FedEx Ground ships all across the U.S. to all business addresses. For shipments between the U.S. and Canada and within Canada, use FedEx International Ground.
FedEx Ground Shipping Rates
FedEx has an extensive rate and service guide showing the rates for sending packages of each size to different destinations. We have consolidated this info into the table below to give you an idea of what it would cost to ship.
You can also find your FedEx Ground rates by using the cost calculator linked in the section above.
Zones (Distance Covered) |
2 (0–150 miles) |
3 (151– 300 miles) |
4 (301– 600 miles) |
5 (601–1,000 miles) |
6 (1,001–1,400 miles) |
7 (1,401–1,800 miles) |
8 (1,801+ miles) |
Price range for FedEx Ground |
$10.10–$102.64 |
$10.51–$105.44 |
$11.46–$112.20 |
$11.98–$115.20 |
$12.38–$125.61 |
$12.52–$135.43 |
$12.74–$152.56 |
Keep in mind that if your package weight exceeds 150 pounds, you will be charged on a price-per-pound basis.
Ultimately your FedEx Ground shipping cost will be determined by the following factors:
The Distance to the Destination
FedEx shipping rates are determined by how many shipping zones your package travels through to reach its destination. FedEx Ground uses seven zones for domestic shipping.
Starting at the origin of the package, zones are laid out as concentric circles around the origin (i.e., Zone 2 is 0–150 miles away, Zone 3 is 151–300 miles away, and so on). The more zones your package travels through, the higher your rates will be.
Whether the Destination Is a Residential or Business Address
Delivery to business addresses is charged at normal FedEx Ground prices. However, if you're shipping to a residential address using FedEx Home Delivery, you will pay an additional $5.15 surcharge per package.
Whether the Destination Is in the U.S. or Canada
For shipments within the U.S., standard FedEx Ground shipping rates apply. For shipments to Canada, you will use FedEx International Ground.
Duties and taxes are the major additional costs you pay when shipping globally. If you want to ship internationally, use the FedEx International Shipping Assist tool to get estimated shipping costs, calculate duties, and get customs documentation.
Packaging Type and Package Size, Weight, and Density
Your package's size, weight, and density are used to calculate your shipment's actual and dimensional weight. The weight of your package is then used to calculate your shipping cost. More about dimensional weight in the sections below.
FAQs
Is FedEx Overnight Expensive?
FedEx overnight services are the second fastest FedEx services, with FedEx Sameday being the fastest. Therefore, FedEx overnight shipping is more expensive than slower delivery options like FedEx 2day and FedEx Express Saver.
Which Is Cheaper: UPS or USPS or FedEx?
In general, USPS tends to be the most affordable option for shipping small parcels, while UPS and FedEx may offer more competitive rates for larger and heavier packages.
Are FedEx Shipping Boxes Free?
FedEx shipping boxes are not free when shipping with standard shipping services. However, you are provided with free boxes when you use FedEx Express.
These are the domestic FedEx Express services that come with complimentary packaging:
- FedEx Sameday
- FedEx First Overnight
- FedEx Priority Overnight
- FedEx Standard Overnight
- FedEx 2day A.M.
- FedEx 2day
- FedEx Express Saver
Prices of FedEx Standard Shipping Boxes
The table below contains prices for FedEx standard shipping boxes. The ‘Price with packing’ columns shows the cost of the box plus packing assistance at a FedEx location. Fragile items might require extra care and more padding. The ‘Price for fragile packaging’ column indicates total price for buying a box and getting assistance with fragile item packing.
Box Size |
Price for box only |
Price with packing |
Price for fragile packaging |
8" x 8" x 8" box |
$1.75 |
$5.49 |
$13.49 |
12" x 3" x 17-1/2" box |
$2.25 |
N/A |
N/A |
12" x 12" x 18" box |
$3.75 |
$9.49 |
$17.99 |
13" x 9" x 11" box |
$2.75 |
$7.49 |
$16.49 |
16" x 16" x 16" box |
$4.29 |
$13.49 |
$21.39 |
14" x 14" x 14" box |
$3.75 |
$9.49 |
$17.99 |
20" x 20" x 20" box |
$6.29 |
$17.99 |
$26.99 |
23" x 17" x 12" box |
$4.75 |
$14.49 |
$23.99 |
12" x 9" x 6" box |
$2.00 |
$6.49 |
$13.49 |
11" x 11" x 11" box |
$2.50 |
$7.49 |
$16.49 |
17" x 17" x 7" box |
$3.25 |
$11.49 |
$19.99 |
20" x 20" x 12" box |
$4.50 |
$14.99 |
$23.99 |
22" x 22" x 22" box |
$7.00 |
$18.99 |
$27.99 |
24" x 24" x 24" heavy-duty double- walled box |
$12.00 |
$21.99 |
$30.99 |
28" x 28" x 28" heavy-duty double-walled box |
$15.00 |
$26.99 |
$34.99 |
24" x 24" x 18" heavy-duty double-walled box |
$10.00 |
$18.99 |
$25.99 |
18" x 13" x 11-3/4" heavy-duty double-walled box |
$7.00 |
$12.49 |
$19.49 |
To get your FedEx shipping rates, add the cost of your desired box(es) to the shipping quote you get from the FedEx shipping cost calculator.
FAQ
Are FedEx Shipping Envelopes Free?
No, FedEx shipping envelopes are not free. However, for FedEx One Rate, FedEx's flat rate shipping service, the cost of the envelope is included in the shipping price. Check out the prices for FedEx mailers and envelopes.
FedEx Dimensional Weight Calculator
First things first: What is dimensional weight?
Dimensional Weight vs Actual Weight
Dimensional weight, which we discussed briefly above, can be defined as the amount of space a package occupies in relation to its actual weight. The actual weight of your package is the reading you get when you measure it on a scale. Shipping companies like FedEx and UPS will charge you either using the actual weight of your package or its dimensional weight, whichever is greater.
By pricing using DIM weight, carriers can avoid losses from shipping unnecessarily big or over-packed packages. DIM weight pricing may also reduce shipping costs for shippers who pack more efficiently.
Dimensional weight applies to both FedEx Express® and FedEx Ground® packages. You can use the FedEx Dimensional Weight Calculator to calculate your package's DIM weight. All you need to do is enter your package's length, width, and height.
Alternatively, you can calculate your DIM weight manually using the following formula:
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To calculate dim weight:
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Multiply length by width by height in inches. Round each measurement to the nearest whole inch. The resulting total is the cubic size of your package.
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Divide the cubic size by 139.
FAQ
Does FedEx Charge by Size or Weight?
Both the size and weight of a package can affect the cost of shipping with FedEx. FedEx will price either using actual weight or dimensional weight of a package. Actual weight pricing does not take size into account but dimensional weight pricing accounts for the size of the package.
How Shipsigma Can Help
Ready to get the lowest FedEx shipping rates? Get in touch with us at ShipSigma. Using our AI-backed proprietary technology and vast shipping experience, we will help you lower your shipping cost without changing your carrier or service level.
FAQ
A parcel typically refers to a relatively lightweight small package that is usually small enough to be easily handled by one person. A parcel can range in weight from a few ounces to around 70 pounds. Parcel shipping is often used for sending personal mail, business-to-business deliveries, and direct-to-consumer shipments.
On the other hand, freight refers to a larger consignment of goods transported using special means such as freight trucks, ships, or planes. Freight shipments typically consist of multiple packages bundled together on pallets, crates, or other large shipping containers.
USPS Retail Ground and USPS First Class Package are the cheapest ways to ship a 1-pound package.
UPS Ground and FedEx Ground are the cheapest options for sending 20 lb packages.
USPS Retail Ground and USPS Priority Mail are the cheapest options for shipping packages with weights of between 1-5 pounds.
Amazon partnered carriers are authorized by Amazon to transport packages on behalf of the company, while other carriers are not affiliated with Amazon in any way.