Starting June 1, 2025, FedEx will increase its Late Payment Fee from 8% to 9.9% on overdue invoice balances. At nearly a 25% increase, this represents a significant cost hike—especially for businesses managing large shipping volumes and thin margins.
This move reinforces FedEx’s efforts to encourage faster payments. Companies that aren’t vigilant with invoice management could see these added fees stack up quickly and eat into profitability.
Why This Fee Increase Matters
Late payment penalties have long been standard among shipping carriers, but pushing the fee to nearly 10% signals a more aggressive stance from FedEx.
For shippers, this isn’t just an operational nuisance, it’s a financial risk. If left unchecked, these penalties can erode profit margins fast.
Notably, FedEx isn't alone. Shortly before this announcement, UPS implemented an identical increase, also raising its late payment fee from 8% to 9.9% effective March 31, 2025.
The change reflects FedEx’s broader intent to tighten payment policies and clearly signals expectations for quicker settlements across the board.
More FedEx Changes Are on the Horizon
This fee hike isn’t happening in isolation. Several other adjustments are scheduled in the months ahead:
June 1, 2025: Changes to the Disbursement Fee and Duty and Tax Forwarding Fee. See the FedEx Service Guide for more information.
June 2, 2025: Updates to the Delivery Area Surcharge (DAS) ZIP code lists
These mid-year changes underscore a larger trend: FedEx is not reserving rate adjustments for annual General Rate Increases (GRIs). Shippers should expect—and plan for—incremental changes throughout the year.
What Shippers Can Do Now
With these updates coming, it’s critical for businesses to tighten internal processes around invoice management. Even a single late payment after June 1 could mean an extra 10% tacked onto your invoice.
Use Lojistic to track and manage shipping invoices, monitor carrier charges, validate billing accuracy, and stay ahead of unexpected fees. Staying on top of this now can help you avoid surprises later.
Author
Bryan Van Suchtelen
Bryan Van Suchtelen
Corporate Director of Rate Services
With more than 34 years of parcel experience, Bryan Van Suchtelen is the Corporate Director of Rate Services at Lojistic, one of the nation’s top logistics and transportation cost management companies.
Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers.
At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars.