FedEx to Raise Rates in January 2021—Here’s What to Expect

This past week, FedEx announced that it will be increasing rates for its domestic, import, and international services, starting on January 4, 2021. We’re here to walk you through the upcoming changes so that you can plan ahead as early as possible.

To cut to the chase, what do these increases ultimately mean for e-commerce businesses? 

First and foremost: a 4.9% increase on average on FedEx Ground and FedEx Home Delivery services. But, there are other new developments as well, that we’ll list here for your reference. 

Rate Increases Across Service Levels

Here are some additional—and more specific updates—from FedEx, that will take effect on January 4, 2021:

Rates will also increase on the following services:

Plus, there will be an increase in minimum rate levels for FedEx Express services. 

Late Fee Policy 

On top of the annual rate increases listed above, FedEx will also apply a 6% late fee on FedEx Ground and U.S. FedEx users who don’t comply with their agreed-upon terms. This will also take effect in January 2021. To account for these fees, the company notes: “This aligns us with general business and industry standards and allows us to provide the best service possible for our customers.” 

Changes to Existing Surcharges

Additional surcharges and updates will take effect on January 18, 2021, and will include:

Looking ahead to 2021, FedEx remains an important part of any shipping mix and a strong option for e-commerce businesses, especially for its tracking capabilities and time-sensitive shipment services. 

Explore Shippo to help streamline your shipping operations and manage your shipping budgets for 2021.