FedEx has recently revealed its plans to implement shipping rate adjustments that will impact small businesses. These adjustments, which are set to take effect on January 1, 2024, will result in an average increase of 5.9% across various FedEx services.
Among the changes announced by FedEx are rate increases for FedEx Express, FedEx Ground, and FedEx Freight. FedEx Express will experience an average rate increase of 5.9% for its U.S. domestic, U.S. export, and U.S. import services. Similarly, FedEx Ground and FedEx Home Delivery will see an average rate boost of 5.9%, including a rise in FedEx Ground Economy shipping rates.
In addition, FedEx Freight rates will be escalated from 5.9% to 6.9%, depending on the customer’s transportation rate scale. This adjustment encompasses shipments within the U.S., as well as shipments between the contiguous U.S. and Canada.
It’s important to note that while these rate adjustments represent an increase from the previous year, they are one percentage point lower than the previous general rate increase. FedEx explains that these changes are necessary due to growing operational costs in the current market environment. The company intends to allocate the additional funds to enhance its services, maintain its fleet, invest in technological innovation, and other areas that contribute to improved efficiency for its customers.
Aside from the primary rate modifications, FedEx will also be introducing changes in surcharges for FedEx Express and FedEx Ground. Starting in January 2024, there will be a rise in customs clearance service fees for imports. Furthermore, a shift in the assessment criteria will be implemented on January 15, 2024. FedEx will now impose the Additional Handling Surcharge and Oversize Charge for every qualifying package in international multi-piece consignments, rather than charging per consignment.
To ensure transparency and provide businesses and consumers with a clear understanding of the rate, surcharge, and fee adjustments, FedEx plans to provide detailed insights on their official website, fedex.com, starting from September 7, 2023.
In anticipation of the upcoming holiday season, FedEx also advises businesses to be aware of the “demand surcharges” that will be in effect. Formerly known as “peak” surcharges, these surcharges should be taken into consideration when planning and budgeting for shipping during the 2023 holiday season.
As FedEx continues to revise its pricing structure, it is essential for small business owners, particularly those heavily reliant on shipping, to update their budgets and cost forecasts to ensure profitability and maintain service quality.
This article, “FedEx Unveils 2024 Shipping Rate Adjustments Impacting Small Businesses” was originally published on Small Business Trends.