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.
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.