More Shipping Rate Rises — FedEx’s General Rate Increase
December 04, 2019
There are two things that are true every new year:
The first is that our weight-loss resolutions are ruined by leftover holiday cookies.
The second is that shipping rates are going up, up, up!
Earlier this year we covered the major carriers’ general rate increases (GRIs), but FedEx recently announced a few more sweeping changes. Here are a couple standouts that might spell trouble for your bottom line.
IT’S TIME TO OPTIMIZE YOUR PACKAGE
The new year is an excellent time for a new you. Carriers have started getting wise to packages that haven’t been optimized, and you’re already paying the price.
Earlier in 2019, Amazon implemented a new policy that saw many vendors paying more in shipping fees. If you ship products that are larger than 18” x 14” x 8” or heavier than 20 pounds, you’re now charged unless they Ship In their Own Container (SIOC). Otherwise, you’re being charged $1.99 per unit.
FedEx is following suit with price hikes of their own. If you haven’t taken the time to optimize your package — its size, weight, and other factors — you might see your prices triple!
You’ll soon pay FedEx a surcharge of $24 for Additional Handling Weight for any package over 50 pounds. Currently they only apply that charge for packages over 70 pounds, so if your package can shed 20 pounds over the holidays… more power to you.
Meanwhile, the Oversize charge will jump to $100 for FedEx Express and FedEx Commercial Ground, and $120 for FedEx Home Delivery. Those charges assume you gave FedEx a heads up — if you spring an unauthorized oversized package on them, you’ll pay a whopping $875!
FUEL SURCHARGE
FedEx hasn’t announced an increase to their fuel surcharge, but the way they’ll calculate it in 2020 means you might start paying more. Currently, FedEx’s fuel charge is only applied to the base rate and delivery charge. Any other surcharges you incur won’t increase how much you’re paying for fuel.
In 2020, that arrangement is getting flipped on its head. If your package incurs a surcharge — like additional handling weight — it will be taken into calculation for your fuel charge. It might only mean a dollar or two more per package, but that can add up quickly.
WHAT CAN YOU DO?
It’s time for a New Year’s resolution: let’s help your packaging get in shape! Our dim weight calculator can help you understand how you’ll be charged for your package — whether through FedEx, Amazon or any other carrier.
After that, it’s time to hit the innovation lab with Ernest! When you partner with us, you get access to over 70 years of experience in optimizing packages. Our expert engineers can redesign your packaging from scratch to be leaner, meaner and less expensive to ship.
Whether it means taking your box back to the drawing board or even switching to a mailer, the new year is time for a new you, baby! No matter who you choose as your carrier, together we can move your packaging forward in 2020.
