FedEx is set to increase its package and freight shipping rates by an average of 5.9%, effective January 6, 2025. The latest FedEx rate hike will affect both domestic and international deliveries, including popular services like Ground Economy, Ground Multiweight, International Premium, and various freight options.
In addition to the rate hike, businesses should be aware of increased fees for residential deliveries, specific ZIP codes, and packages requiring extra handling. For e-commerce shippers relying on Ground Economy, these changes mean it’s time to revisit your shipping strategies, especially when dealing with heavier packages and remote destinations.
Brandon Staton, founder of Shipmint, pointed out the impact on shipping costs: “E-commerce shippers using Ground Economy services will need to keep a close watch on how the increases in both minimum charges and surcharges impact their shipping costs.”
With FedEx’s two-day air services facing even steeper rate hikes, some shippers may consider ground delivery as an alternative. However, Adi Karamcheti, consultant at Shipware, warns that ground delivery rates for longer-distance shipments will also see noticeable increases. “It seems FedEx thinks they can get shippers to pay more to get things delivered before the third day,” he noted.
While UPS has yet to announce its 2025 rate changes, both major carriers operate in a post-pandemic environment where demand is softer, giving businesses more leverage in shipping negotiations. “Never accept what the big two offer as pricing concessions as the final say,” Karamcheti advises. “Make sure that you do actually negotiate with them.”
What This Means for You:
FedEx’s annual rate adjustments are a good reminder to review your shipping mix and explore ways to minimize costs.
At eHub, we’re ready to help you navigate these changes—whether it’s by finding alternative carriers, optimizing your shipping strategy, or tapping into our partner network to save you time and secure the best rates for your business.
