The 2021 FedEx shipping rate changes have been announced, as well as changes to other fees and surcharges that will be coming in January 2021. Below is a summary of what we know.
FedEx 2021 Shipping Rate Changes
FedEx is planning to increase shipping rates for its FedEx Express, FedEx Ground, FedEx Home Delivery®, FedEx SmartPost®, and FedEx Freight services beginning on January 4, 2021. The 2021 FedEx shipping rate changes that effect e-commerce merchants most are below:
- FedEx Express package and freight standard list rates will increase an average of 4.9% for U.S., U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9%.
- FedEx SmartPost, FedEx Ground Multiweight®, and FedEx International Premium® rates will increase. Minimum rates for FedEx Express services will also increase.
- Service Guide pricing for FedEx One Rate will change.
You can view 2021 FedEx Express, FedEx Ground and FedEx Home Delivery rates in this PDF.
2021 FedEx Surcharges and Fees
FedEx will be changing and adding fees next year in a tiered timeline. Below, we will break down what is happening when, and how it might affect your business.
Looking for 2020 holiday shipping rates and surcharges for USPS, FedEx, and UPS? Find our breakdown here.
Beginning January 2021
As 2021 kicks off, FedEx will now charge a 6% late fee to U.S. FedEx Express and FedEx Ground customers who don’t pay their invoice within their agreed-upon payment terms. FedEx says the reasoning behind this is that it aligns them with general business and industry standards and allows them to provide the best service possible for their customers.
Beginning January 18, 2021
The below FedEx Express, FedEx Ground and FedEx Freight surcharge changes will also go into effect, though the freight costs may not apply to many e-commerce merchants:
- There will be changes to how Additional Handling Surcharge is assessed for FedEx Express and FedEx Ground packages.
- FedEx Freight will introduce a High-Cost Service Area Surcharge that applies to certain shipments.
- Certain U.S. locations will be assessed an International Out-of-Delivery-Area Surcharge or an International Out-of-Pickup-Area Surcharge for FedEx International Express Freight® services.
The one that might affect e-commerce merchants the most is Additional Handling Surcharges. Let’s dive further into what these surcharges are and when they apply.
FedEx Additional Handling Surcharges
This is the most relevant to e-commerce merchants, as many do not use FedEx Freight services. As a reminder, Additional Handling Surcharges apply to packages that meet the following criteria for Express Package and Ground Services:
A surcharge applies to any package where dimensions:
- Measures greater than 48 inches along its longest side
- Measures greater than 30 inches along its second-longest side
Or where weight:
- Has an actual weight greater than 50 lbs. (FedEx U.S. Express Package Services and U.S. Ground Services)
- Has an actual weight greater than 70 lbs. (FedEx International Express Package Services and International Ground Services)
The change coming January 18, 2021, is that a surcharge will apply to any Express and Ground package that measures greater than 105 inches in length (L) and girth (G), which is calculated using the below formula:
L + (Height x 2) + (Width x 2)
If the outcome of that formula is greater than 105 inches, the Additional Handling Surcharge will apply. Merchants who ship large, bulky, or nonstandard-shaped items will need to keep this surcharge in mind even more in 2021.
Beginning February 1, 2021
FedEx will be changing how fuel surcharges are assessed for U.S FedEx Express Freight shipments. This won’t likely affect most e-commerce merchants. But for further clarification, FedEx explains this change with the following verbiage:
The fuel surcharge for U.S. Domestic Express Freight services will be a charge per pound assessed on the rated weight of the shipment. The charge per pound will be subject to weekly adjustment based on the weekly published U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel.
We’ll do a similar and more in-depth breakdown when the 2021 USPS shipping rate changes are announced, as well as the 2021 UPS shipping rate changes upon their release. In the meantime, save money on every shipment with discounted USPS and UPS shipping rates from ShippingEasy. Click below to start your 30-day free trial today!
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