FedEx Rate Increase for 2021: How Your eCommerce Business Can Cope8 min read

FedEx has announced its General Rate Increase (GRI) for 2021. As in almost every year, the average increase is 4.9%, although the increase is not uniform across all service types and parcel sizes.

This article will unpack the latest rate increase, its various nuances, and what it might mean for your business in particular.

According to FedEx “These rate changes enable FedEx to continue investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently.” But this rate increase can hurt your business big time, particularly in a COVID-19 pandemic-influenced situation.

Make sure to read till the end for ways to save on shipping in 2021 and reduce the impact of FedEx’s General Rate Increase on your business.

But before that, here are the most notable aspects of the latest rate increase by FedEx.

Key Highlights of the General Rate Increase for 2021

  • The average rate increase is 4.9% for Express, Home, & Ground deliveries from January 4, 2021.
  • The carrier has added a new late fee of 6% for unpaid invoices beyond 15 days (or agreed-upon terms) for Express & Ground customers.
  • The Ground minimum rate for shipments has been increased from $8.23 to $8.76 per parcel.
  • Beginning January 18, 2021, the additional handling surcharge will be $16 (up from $15).
  • Delivery Area Surcharges (DAS) will increase by 15–50 cents a package for deliveries both commercial & residential.
  • The Oversize charge for Ground Home deliveries will increase from $120 to $130.
  • Beginning February 1, 2021, there will be changes to fuel surcharges for Express Freight shipments.
  • An international out-of-delivery-area surcharge or an international out-of-pickup-area surcharge for customers in remote areas using international Express Freight services will be added. Here is a list of ZIP codes for the latter services.