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
KEY POINTS

• UPS and the Teamsters said they reached a tentative deal on a new contract.
• The labor agreement is still subject to a ratification vote by the more than 300,000 workers.
• The preliminary deal includes wage increases for both full- and part-time workers.

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.

See video from Automotive Logistics Conference.  

Freight pricing specialists AFMS, CEO Mike Erickson,  gives an inside track on best practices to negotiate best-in-class shipping rates with major carriers in North America and beyond. 
For a copy of the full video, please email info@afms.com or call 800-246-3521. ​