Customers using FedEx Ground, the company’s U.S. ground delivery business, will need to ship by Dec. 20 if they choose two-day shipping, the company said. Customers using FedEx Home Delivery, the company’s residential delivery operation, will need to ship by Dec. 21 for two-day shipping. Parcels tendered to FedEx Ground for one-day shipping must ship by Dec. 21. For Home Delivery, the deadline is Dec. 22.
Oversize rates see an uptick to 20%
Additional Handling Surcharge surges to over 21%
FedEx announced their 2024 General Rate Increase on August 29th to be Effective January 1, 2024.
Overall, FedEx Ground, Home Delivery, Express, and WW International rates will increase an average of 5.9%.
Slightly lower than 2023 increase of 6.9%. Accessorials, fees, and surcharges will take another hit in 2024 with
increases ranging from 5.4% to over 21%. Ground Economy and Ground Multi-Weight rates have not been
announced. We will continue to monitor for updates and relay any changes to our clients as soon as information
All increases are based on “service level” averages. Additional changes in fees and surcharges will vary based on
individual characteristics and product mix. Let’s break it down in more detail...
Original Article on FedEx.com
August 29, 2023 08:00 AMMEMPHIS, Tenn., August 29, 2023 — FedEx Express, FedEx Ground, and FedEx Freight, subsidiaries of FedEx Corp. (NYSE: FDX), will adjust shipping rates on January 1, 2024.
Original Article on CNBC.com
United Parcel Service announced their 2023 General Rate Increase taking effect December 27, 2022. Overall, UPS Ground, Air, and international rates, will increase an average of 6.9%.
However, there will be some key changes within the accessorial, fee, and surcharge categories. Shippers with larger packages will be in for quite a sticker shock. Most notably, domestic Additional Handling will see an average increase of 16.2% and Large Package Surcharge rates will incur an average increase of 19.2%.
In addition, there will be a new Remote Area Surcharge ($12) applied to select zip codes within the US. UPS Daily Base Freight rates are even higher than last year’s increase and will mirror that of FedEx’s 6.9% for 2023. SurePost rates have not yet been posted. We will let you know as soon as they become available.
As always it is important to keep in mind these increases are only service level averages. A Company’s unique characteristics and shipping patterns will determine the true impact. Let the pros at AFMS help you sift through these changes and assist you in mitigating these cost increases to your transportation budgets.
Click here to read the full article and analysis.
Home Delivery DAS Surcharge Up 10.4%
Additional Handling Surcharge to exceed 21%
FedEx announced their 2023 General Rate Increase on September 22 nd to be Effective January 2, 2023. Overall, FedEx Ground, Home Delivery, Express, and WW International rates, will increase an average of 6.9%. An additional percentage point higher than 2022 increase of 5.9%. Accessorials, fees, and surcharges will see similar increases as last year with some products as high as 24%. Both Ground Economy (formerly known as SmartPost) and Ground Multi-Weight service increases have yet to be posted. We will update our clients as soon as information is made available.
FedEx rolling out complex “Peaking Factor”
As of August 5th, FedEx has announced a new version of how they will calculate this year’s Peak Season
Surcharges. High volume shippers will continue to be the target, while application of these charges include both
U.S. Domestic Ground and Express services. Over and above a general “Peak Surcharge”, these new charges will
extend to Additional Handling, Oversize, Unauthorized and Residential packages. Changes will take effect
beginning September 5th.
AFMS is the leading transportation price benchmarking firm in North America and Europe with business intelligence analytics focused on reducing transportation costs through carrier contract negotiations and automated freight audit and recovery. AFMS specializes in benchmarking your freight rates to tell you exactly what market discounts and concessions you deserve with your current carrier.
UPS debuts Delivery Area Surcharge-Remote and Double-Digit increases.
UPS & FedEx DAS changes expected to play a bigger profit role in 2022.
Rearranging zip codes to increase margins is nothing new to United Parcel Service or Federal Express. There has been an ongoing effort designed to align lower density/more costly deliveries with profits. Changes usually associated with Rural Residential and Rural Extended Area Residential zip code deliveries.
The explosion of ecommerce & business to business deliveries over the past several years, has made it necessary for Carriers to identify ways to lower their cost while making a profit along the way. A couple of their more expensive surcharges: Delivery area Surcharge (DAS) and Delivery Surcharge Extended (EAS). Both designed to charge more for packages destined for the less populated zip code addresses across the country. Usually, the determination goes something like this…the MORE rural a delivery…the less populated…the less populated means lower delivery density…the lower the density…the more costly…the bigger surcharge applied…
To get down to the details of this increase AFMS has prepared an expert analysis that you can find here.
AFMS has helped thousands of companies get better rates with UPS and FedEx.
Contact AFMS for a detailed analysis at 800-246-3521 or email us at firstname.lastname@example.org.