FedEx Announces Holiday Season Surcharges and Adjusted Rates for 2024

FedEx disclosed plans to implement temporary surcharges for the upcoming holiday season and hike rates across all of its services for 2024.

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2024 Rate Hikes

• FedEx Express: Rates for U.S. domestic services, as well as U.S. export and import services, operated under FedEx Express, will see an average increase of 5.9%. This increment is marginally lower than the previous year’s general rate increase.
• FedEx Ground and FedEx Home Delivery: Shipping rates associated with FedEx Ground and FedEx Home Delivery will undergo an average increase of 5.9%. Notably, this adjustment extends to FedEx Ground Economy shipping rates as well.
• FedEx Freight: The shipping rates for FedEx Freight shipments will be adjusted in the range of 5.9% to 6.9%, contingent upon the customer’s specific transportation rate scale. This rate alteration applies to shipments within the United States, including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands. Additionally, it covers shipments between the contiguous United States and Canada.

These rate adjustments come with an average annual increase that is one percentage point lower than the preceding year’s general rate increase. The carrier clarified that these modifications are a response to the evolving operational circumstances and the incremental costs associated with them.

Simultaneously, these adjustments will facilitate the company’s ongoing investments in its logistics network such as service improvements, fleet upkeep, technological innovations, and other updates aimed at enhancing customer experience and operational efficiency.

FedEx has also communicated forthcoming changes to certain surcharges, which are as follows:

• Customs Clearance Service Fees: Starting January 1, 2024, FedEx will be implementing an increase in customs clearance service fees applicable to import operations.
• Additional Handling Surcharge and Oversize Charge: Effective on January 15, 2024, FedEx will be revising the fee structure for the Additional Handling Surcharge and Oversize Charge for international multi-piece shipments. Instead of a per-shipment charge, these fees will be assessed per eligible package. This change specifically affects the Additional Handling Surcharge, which includes considerations related to dimension, weight, packaging, freight, and non-stackability, as well as the Oversize Charge.

The detailed breakdown of all these rate adjustments, surcharges, and fee revisions will be made available on FedEx’s official website, fedex.com, starting from September 7, 2023.

FedEx Holiday Season Surcharges

FedEx also announced ‘peak season’ surcharges for the holiday season but decided to rename those to ‘demand’ surcharges in 2023.

• Demand — Additional Handling Surcharge: =Effective from Oct. 2, 2023–Jan. 14, 2024 and applies to U.S. Express Package Services, U.S. Ground Services, International Ground Service. The surcharge is $6.95 per package.
• Demand — Oversize Charge: Effective from Oct. 2, 2023–Jan. 14, 2024 and applies to U.S. Express Package Services, U.S. Ground Services, International Ground Service. The surcharge is $73 per package.
• Demand — Ground Unauthorized Package Charge: Effective from Oct. 2, 2023–Jan. 14, 2024 and applies to U.S. Ground Services, International Ground Service. The surcharge is $410 per package.
• Demand Surcharge: This surcharge applies to FedEx Ground Economy Package Services and has three applicable time frames and charges.
  • Oct. 30, 2023–Nov. 26, 2023, $1.60 per package
  • Nov. 27, 2023–Dec. 10, 2023: $2.60 per package
  • Dec. 11, 2023–Jan. 14, 2024: $1.60 per package
• Demand — Residential Delivery Charge: Effective Oct. 30, 2023–Jan. 14, 2024 and applies to FedEx Express, FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy, and FedEx One Rate packages). This surcharge is based on volume, please see FedEx information here.

FedEx intends to unify its operating divisions into a singular entity called Federal Express Corporation by the middle of next year. Although FedEx Freight will remain distinct, other operational sectors such as FedEx Express and FedEx Ground are set to combine under the FedEx brand.