2014 FedEx Express Rate Increases
11/07/2013 — Leah Palnik
FedEx recently announced a general rate increases (GRI) of 3.9%, on average, for domestic and international FedEx Express services. These new rates will take effect January 6, 2014 along with the FedEx Ground and FedEx Home Delivery general rate increases that will be announced later this year (historically, FedEx will match Ground increases set by UPS). In previous years, FedEx has had higher rate increases but offset them with a fuel surcharge reduction. This year they have not announced plans to modify the fuel surcharge indexes and instead have lowered the rate increase compared to previous years (3.9% vs. 5.9% in 2013).
For a full listing of the 2014 FedEx Express rates, click here. Below is a snapshot of average rate increases for commonly used FedEx Express services.
2014 will also see changes to surcharges and fees for FedEx Express services, with a 7.6% average increase.
- Declared Value. Declared value charges for FedEx Express services will increase from $0.85 to $0.90 per $100 of value. For U.S. package services, the charges apply to shipments valued in excess of $100, and the minimum charge will increase from $2.55 to $2.70. For international services, the charge applies to the value in excess of $100 or $9.07 per lb., whichever is greater.
- Delivery Area Surcharge. For applicable FedEx Express U.S. package services, a delivery area surcharge applies to shipments destined to select ZIP codes.
- Collect on Delivery (C.O.D.). For applicable FedEx Express U.S. package services, the charge for FedEx C.O.D. will increase from $11 per package to $12 per package. The cap for FedEx Express Multiweight shipments will increase from $77 per shipment to $84 per shipment.
- Residential Delivery Charge. For FedEx Express U.S. and international package services, a residential delivery charge applies to shipments to a home or private residence.
- Saturday Delivery. For applicable FedEx Express U.S. package services, the charge for Saturday delivery will increase from $15 per package to $16 per package. For applicable FedEx Express international package services, the charge for Saturday delivery will increase from $15 per shipment to $16 per shipment.
- Saturday Pickup. For applicable FedEx Express U.S. package services, the charge for Saturday pickup will increase from $15 per package to $16 per package and the maximum charge will increase from $105 per shipment to $112 per shipment. For applicable FedEx Express international package services, the charge for Saturday pickup will increase from $15 per shipment to $16 per shipment.
If you ship small packages these rate increases will likely affect your business. When FedEx announces their FedEx Ground rate increases, you can count on PartnerShip to provide you with a breakdown of what these new rates will mean to you and your business in 2014. In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these general rate increases.
If you're not sure if you qualify for one of our small package shipping programs Contact Us and we'll find the solution that's right for you. Also, if you click the button below, we can provide you with a free, no-obligation shipping analysis to determine how much we can help you save on your small package shipping.