In June 2021, FedEx implemented a new late payment fee of 6% for all U.S. FedEx Express and FedEx Ground customers who don’t pay their invoice within their agreement’s stated payment terms (which has historically been 14 days).
So, any Express or Ground customer that is past due on a payment will be charged an additional 6% of the amount past due. Payment terms and timelines can vary by customer, so refer to your contractual payment terms if you’re a FedEx customer.
In this post, you can expect to learn about:
- FedEx's 6% Late Payment Fee
- Free & Easy Solutions to Mitigate or Avoid Carrier Fees
- Lojistic's Audit + Recovery + Pay Service
FedEx Implements 6% Late Payment Fee
FedEx’s official announcement states the reason for introducing this new late payment fee is because it “aligns us with general business and industry standards and allows us to provide the best service possible for our customers.”
You can read the official announcement here or see the screenshot below.
What Other Fees, Surcharges or Restrictions Did FedEx Recently Implement?
Over the past 18 months, FedEx has posted consecutive record-breaking quarters of profitability.
Within that same period, they have:
- Eliminated the ability to file for late shipments: Effective March 23, 2020
- Reinstated a limited ability to file for late shipments: Effective April 6, 2021
- Increased surcharges and fees: June 2020, January 2021, June 2021
- Introduced “peak” surcharge fees: June 2020, January 2021, June 2021
- Increased rates with the annual rate increase: January 4, 2021
FedEx will also be raising their rates again in January 2022 with their annual rate increase.
How Can I Avoid FedEx Late Payment Fees?
If your business has struggled with late payments and you’ve been dinged with fees or if you feel like you’re spending too much time processing FedEx invoices, Lojistic can help.
First, you can connect to the Lojistic platform for free to quantify the financial impact late fees have had on your business. Many businesses struggle to control shipping costs as a result of surcharges and fees. The surcharge summary dashboard allows you to easily monitor and manage all variables within your shipping spend. Want to see the surcharge summary dashboard in action? Watch a brief tutorial video here. If there’s unexpected surge in the occurrence of a particular fee, or the cost of a particular charge - like late fees - goes up, it’ll never go unaccounted for when you’re using Lojistic.
How Can I Get Help Managing My FedEx Parcel Invoices?
Lojistic can help expedite and simplify your shipping invoicing by managing the carrier payment process on your behalf. Instead of dedicating hours of staff time to process FedEx and UPS invoices, we’ll ensure your carriers get paid with one simple ACH push. And we’ll automate your GL coding according to your company’s rules. Adding + Pay and GL coding to our Audit + Refund Recovery service is free.
When you enable + Pay, all you’ll need to do is review and approve a single weekly invoice, and we’ll manage the rest. And if you have the ability to pay your carrier invoices by credit card, Lojistic will provide Audit + Refund Recovery + Pay services at no cost...that’s right, we’ll waive all of our fees. You can learn more about our Parcel Audit + Recovery + Pay service here, or you can schedule a convenient time to chat with one of our experts.
Managing the carrier payment process on your behalf is just one of the many ways Lojistic can help you better manage your parcel invoices and avoid FedEx’s new late payment fee. With Lojistic, you save time and money.