FedEx Announces their 2018 Rate Changes
- Nicolas Telesca
- Sep 26, 2017
- 2 min read
FedEx Announces their 2018 Rate Changes
FedEx just announced their rate changes for 2018. If you’re one of those folks that follows these sorts of things, this is a particularly early announcement. It also brings in some pretty hefty across the board increases. In addition to general rate increases, FedEx has also announced it will implement a third-party billing fee much like the one that is already in place with UPS.
2018 FedEx Rate Changes in Detail
Generally, when one of the carriers announces a rate change, you have to dig into the details to figure out exactly how it will impact your shipping profile. This year – with a few exceptions – it’s pretty straight forward. Though FedEx announced the 2018 rate changes in several bullets in their press release (we’ll include their language below), it boils down to a simple 4.9% hike on Freight, Home Delivery, Ground, and Express services.
In addition to a general rate hike across all services, FedEx has introduced a third-party shipping fee and they are modifying the oversize fees and definition. Here are the details from the recent FedEx press release.
With all of this in mind, it’s more important than ever that you have a parcel auditing plan in place and that you are on top of filing for any guaranteed service refunds that you are entitled to.
Effective January 22, 2018, a Third Party Billing Surcharge will apply to FedEx Express and FedEx Ground shipments that are billed to a third party.
Effective January 22, 2018, applicable criteria and pricing for packages that require additional handling, are oversized, or are unauthorized, will change.
Effective January 22, 2018, FedEx SmartPost will apply dimensional weight pricing, and the Non-Machinable Surcharge will change.
Effective January 22, 2018, FedEx Freight will implement an Over Length Surcharge of $85 per shipment and will be applied to shipments with dimensions of 8 feet or greater and less than 12 feet.
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Author: Nicolas Telesca
Nicolas Telesca has more than 15 years of experience in logistics and parcel transportation. He is Co-Founder and Chief Analyst at Franklin Parcel and works closely with large shipping operations at a national 3PL, specializing in carrier contracts, shipping analytics, and cost visibility across UPS and FedEx networks.
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