It’s that time of the year—FedEx recently announced its general rates increase (GRI). Effective January 5, 2026, the shipping giant will implement a 5.9% average general rate hike across all U.S. domestic, export, and import services.
Prepare for the 2026 FedEx rate increase with key insights from the experts at Lojistic.
VIEW OUR COMPREHENSIVE GUIDE TO THE 2026 UPS & FEDEX GENERAL RATE INCREASE
What Is the FedEx GRI?
The General Rate Increase (GRI) is a practice employed by carriers like FedEx and UPS to adjust their shipping rates annually. While it's touted as a measure to keep pace with inflationary trends and offset rising operational costs, the reality is that it often serves the carriers' interests more than the shippers'.
Here’s a quick look at how FedEx bumps its prices each year. The table below breaks down the percentage increases for their domestic services over the past 3 years.
Service | 2024 Rates | % Increase | 2025 Rates | % Increase | 2026 Rates | % Increase |
|---|---|---|---|---|---|---|
FedEx First Overnight | $79.59 | 3.59% | $82.45 | 4.31% | $86.00 | 4.31% |
FedEx Priority Overnight | $48.59 | 5.89% | $51.45 | 6.90% | $55.00 | 6.90% |
FedEx Standard Overnight | $46.33 | 5.89% | $49.06 | 5.89% | $51.95 | 5.89% |
FedEx 2Day A.M. | $29.73 | 5.89% | $31.48 | 5.18% | $33.11 | 5.18% |
FedEx 2Day | $26.76 | 5.87% | $28.33 | 4.87% | $29.71 | 4.87% |
FedEx Express Saver | $24.60 | 4.47% | $25.70 | 3.89% | $26.70 | 3.89% |
FedEx Ground & FedEx Home Delivery | $12.56 | 5.81% | $13.29 | 5.79% | $14.06 | 5.79% |
Average Increase | 5.34% | 5.26% | 5.26% | |||
FedEx and UPS 2025 GRI: A Familiar Tune
In early October, FedEx announced its GRI for 2026, implementing a 5.9% average rate increase across most of its services. As is often the case, UPS announced an identical increase shortly after FedEx's announcement. It's becoming more than clear that these major players march to the same beat, making it difficult for shippers to catch a break.
Surcharges
It’s important to note that the announced average increase doesn’t tell the full story. The 5.9% figure is just a blended number that doesn’t reflect how surcharges, fees, and contract details affect your actual shipping costs. To understand the true impact, you need to compare your own shipping profile against the specific line items of the GRI, especially the surcharges.
One of the most significant changes for 2026 is the introduction of Cubic Volume Criteria for Additional Handling and Oversize fees. Carriers will now assess these surcharges based not only on length but on the total volume of a package. For example, Additional Handling will apply to packages exceeding 10,368 cubic inches, while Oversize will be triggered at 17,280 cubic inches (effective January 12, 2026 for FedEx).
This shift means items that previously fell below length thresholds, but still had substantial volume, may now be hit with costly surcharges for the first time. It’s a major change that can materially increase costs if you’re not evaluating how your packaging dimensions stack up against these new criteria.
Minimums
The concept of 'minimums' in FedEx shipping pertains to the base cost a shipper will incur for sending any package, irrespective of any negotiated discounts or incentives. This minimum charge is set by FedEx for all the services included in a contractual agreement and is applied to every individual shipment.
Much like surcharges, minimum fees often catch customers off guard, resulting in higher costs than initially anticipated.
Although the minimum for ground shipments saw a rise of 5.9%, it’s important to note that minimums for the Priority Overnight services rose by 6.88%. The slightly larger hike in overnight fees could be attributed to the guarantees in place for those service levels, as opposed to ground services, whose guarantees are still suspended (see why here).
Why Does GRI Matter?
For any business who relies on shipping, the parcel General Rate Increase (GRI) matters significantly because even a seemingly modest percentage hike can have a ripple effect on your company's operational costs, thereby affecting budgets and profit margins.
This extra cost is not just a line item; it's a financial burden that could otherwise be channeled into other operational areas like marketing, technology upgrades, or workforce expansion. To not be caught off-guard, companies need to anticipate the rate increase and adjust their own shipping strategies and charges accordingly.
Lower Your Shipping Costs with Lojistic
The 2026 FedEx rate increase is around the corner—are you prepared?
Given another year of expected shipping rate hikes, companies must use every resource at their disposal to manage and gain visibility over their shipping costs.
If this all feels overwhelming, consider leveraging Lojisitic's platform and team of experts who have successfully helped thousands of shippers save hundreds of millions of dollars – money the carriers would have otherwise kept. You could offset, eliminate, or even find savings above and beyond the GRI.
GRI Impact Analysis: With our comprehensive Impact Analysis we can show you exactly how these changes will affect your business in the coming year, and ways you can mitigate these looming increases. Knowledge is power!
Shipping History at a Glance: Our free platform allows businesses to see their shipping history clearly across multiple carriers and modes, offering valuable data to drive smarter decisions.
Free Audit: Your Lojistic account automatically audits for invoice errors, enabling you to recover refunds and eliminate unnecessary expenses.
Compare Mode: Businesses can utilize our "Compare Mode" to quantify the impact of changes like the rate increase on their shipping costs.
We also suggest reading our article on the UPS rate increase. Understanding both FedEx and UPS rate adjustments will empower you to make informed decisions to optimize your shipping strategies and manage costs effectively.
VIEW OUR COMPREHENSIVE GUIDE TO THE 2026 UPS & FEDEX GENERAL RATE INCREASE
Frequently Asked Questions
Shipping 100 lbs via FedEx depends on the service level, destination zone, dimensional vs. actual weight, and surcharges. With the 2026 FedEx rate increase, heavier shipments like 100-pound parcels often incur higher base rates and a larger proportion of accessorial fees. Lojistic’s analytics lets shippers model 100-lb shipments to see true landed costs.
The cheapest FedEx shipping option is typically Ground or Economy service to non-residential addresses, with minimal surcharges. Thanks to the 2026 FedEx GRI, shippers should check how surcharges or remote-zone charges can make ‘cheaper’ options unexpectedly costly. Lojistic helps analyze service levels and identify the best cost-effective FedEx options for your shipping profile.
FedEx international shipping costs vary widely based on country of origin/destination, weight, service level, and customs fees. Following the 2026 FedEx rate increase, international service surcharges and dimensional weight thresholds shifted significantly. Lojistic enables shippers to simulate international FedEx shipments and benchmark costs against contract rates.
Yes — FedEx calculates shipping charges based on either actual weight or dimensional (volume) weight, whichever is greater. The 2026 FedEx GRI also raised dimensional-weight thresholds and introduced new volume-based criteria for certain surcharges, making size more impactful than ever. Lojistic’s platform helps identify when size triggers higher charges and how to adjust packaging accordingly.
Author
Rich Harkey
Rich Harkey
Senior Strategy Manager
Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry.
As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.
Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.