Starting this January, a late fee will be charged by FedEx to all customers of U.S. FedEx Express and FedEx Ground who have not paid their invoice on time. On January 4, 2021, rates will increase for FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx SmartPost, and FedEx Freight.
Additionally, changes may occur on shipping surcharges and fees, which will be noticeable in total shipping costs. Increases may include changes to the assessment of the Additional Handling Surcharge for packages that are FedEx Express and FedEx Ground, as well as a new High Cost Service Area Surcharge and International Out-of-Delivery-Area or Out-of-Pickup-Area Surcharge on FedEx International Express Freight packages.
For FedEx Express and FedEx Ground Rates, the standard list rates will have an increase of an average of 4.9% for the U.S. rates for FedEx SmartPost, FedEx Ground Multiweight, and FedEx International Premium will also increase, as well as the minimum rates for FedEx Express services and the FedEx One Rate service guide pricing. FedEx retail rates will also be affected.
For FedEx freight rates, freight rates will have an increase of about 5.9% on rates for FXF 1000, FXF 501, Offshore, and Commodity. FXF PZONE and FXF EZONE rates will see an increase of about 4.9%. FedEx Freight rates will also increase for FXFC 1100, FXFM DD, and FXFM IMS, but will not increase for FedEx Freight box rates.
What to Expect for February 2021
In February, fuel will be assessed differently for U.S. FedEx Express Freight shipments. The new method will be based on a charge per pound, which will be assessed on the shipment's rated weight and may be adjusted weekly.
With all of the industry and carrier changes, it is essential to have reliable parcel contract optimization. Keeping up with the fluctuating rates and industry terms can prove challenging, but luckily there are plenty of parcel pricing experts that can help with negotiation support, FedEx contract pricing optimization, and any related needs.