This week, FedEx announced their 2021 rate increase, which will be made effective January 2021.
This announcement came a day before they released their first quarter results for fiscal year 2020, in which they posted record profits.
“FedEx Destroys Earning Estimates. Things Are Getting Really Good.”
This begs the question: if earnings are at an all-time high, why are rates continuing to skyrocket? And further, why hasn’t FedEx reinstated a shipper’s ability to file for late shipments?
So how much more will you have to pay to ship with FedEx? Their 2021 general price increase includes:
4.9% increase (average) for FedEx Express and FedEx Ground base rates
Increases to minimum charges
New late payment fee of 6% (they do not currently charge a late payment fee)
Changes to how the additional handling fee is assessed – dimension is assessed
Across-the-board surcharge increases
In all, nearly 40 FedEx surcharges will see increases, which means your net effective increase could be much higher than 4.9%
Will you allow FedEx to increase your rates without recourse?
Your Lojistic account provides the data necessary to monitor and measure the impact of FedEx’s impending price increase. As always, we’re here to help if you need assistance determining how this increase will impact your business in 2021.
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.