FedEx 2019 Peak Season and GRI Just Announced

FedEx announced this week that there will be no additional residential delivery surcharges forthcoming this holiday season for standard-sized packages, for the third year in a row. It will, however, apply surcharges on shipments that are oversized or require additional handling. This mirrors UPS’s peak season announcement last month in that both companies are choosing to charge more for packages that are difficult to transport.

According to FedEx, the details for the surcharge are as follows:

The peak season surcharges begin well before the holiday season officially begins, and end after the New Year, to take advantage of the expected spike of post-holiday returns. 

Increased Rates

If some shippers think they got off easy, that is not entirely the case. FedEx also announced a rate increase effective January 6, 2020. Shipping rates will again increase by an average of 4.9% for U.S. domestic, export, and import services. This is the same as last year’s overall increase. 

VIProcure customers take note — the impact for you will likely be much less. If you are not a VIProcure customer contact us to learn more.

Effective January 20, 2020, FedEx Express, Ground, and Freight surcharges will also be increasing, which should be of no surprise to shippers. The rate trend in shipping is for higher fees for any shipments that require extra time and work for the carriers. FedEx Freight (FedEx’s LTL business unit) will go up by 5.9% on average for shipments within the U.S. and between the contiguous U.S. and Canada. Freight rates for shipments within Canada, Mexico, and between the U.S. and Mexico are also going up.

SmartPost service, which concentrates on the final-mile / B2C delivery market, will also see rates increase, although the carrier did not specify the amount. Rates for packages that require additional handling or are oversized, as well as the fuel surcharge for FedEx Express and Ground, will change as well.

In the end, it’s the shippers who are sending parcels that are oversized or need additional handling who’ll feel the impact of this increase most. For example, the additional handling increase per package on U.S. Express, U.S. Ground, and International Ground Services is going up $1.50, from $13.50 to $15 per package.

Now is the time, before the Peak Season begins and the 2020 GRI is implemented, to talk to VIProcure for a no-obligation analysis to see how much you can save with our program. There is nothing to lose and everything to gain.

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