Breaking Down the 2020 Fedex Shipping Rate Increase Going into Effect January 6, 2020

Effective January 6, 2020, FedEx Express, Ground and Home Delivery will increase transportation rates by an average of 4.9%. Keep in mind we said average. Some weight and zone combinations may be less than 4.9%, others may be slightly more.

FedEx Freight will increase rates on average of 5.9%

On our last episode, from a few days ago,  while discussing the 2020 Rate Increases for UPS, we discussed Surcharges. The same goes for FedEx... pay attention to the Surcharges. There are lot's of changes here too!

-AHS (Additional Handling Surcharge) - Dimensions will increase to $15, a 11.1% increase
-AHS - Weight will increase to $24, a 20% increase
-Maybe more importantly, this Surcharge, AHS-Weight (on January 20th) is dropping from a 70 lb threshold to 50 lbs. Meaning, you would not incur this surcharge before unless you shipped a 70 lb or heavier package. As of January 20, 2019, you will receive this surcharge when shipping a 50 lb or heavier package.

-Oversize Packages
-Express & Ground Oversize will increase to $100, a 11.1% increase
- Home Delivery Oversize will be $120, a 33% increase
-Address Correction from $16 to $17
-DAS (Delivery Area Surcharges) are up across the board. It also appears the FedEx is increasing the number of zip codes that will see the DAS surcharge. See the zip codes that will be effected at the below FedEx link.
-Residential Surcharges are up:
-Express, International and Ground from $4.40 to $4.65 up 5.68%
-Home Delivery is up from $3.80 to $4.00 a 5.26% increase

For a full list of FedEx Rate changes, visit their Rate Changes page: https://www.fedex.com/en-us/shipping/current-rates.html

Here you can also find their changes to Surcharges: https://www.fedex.com/en-us/shipping/current-rates/surcharges-and-fees.html

Changes taking effect January 20, 2020: https://www.fedex.com/en-us/shipping/current-rates/other-changes.html

Please be sure to Subscribe to our Podcast, YouTube Channel or Like our Social Media Channels for more updates soon. We will be sharing USPS Rate increases, that are coming after the first of the year in our next update.

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