FedEx announces 2023 peak season surcharges! Price increases will begin on October 2!

It is learned that on August 29, FedEx released a plan to adjust the peak season surcharges for 2023. The express giant also announced that it will raise parcel rates across the board next year.

2024 Parcel Rates

FedEx: FedEx's U.S. domestic services and U.S. import and export services rates will increase by an average of 5.9%.

FedEx Ground and FedEx Home Delivery: FedEx Ground and FedEx Home Delivery rates will increase by an average of 5.9%. It is worth noting that this change also applies to FedEx Ground Economy rates.

FedEx Freight: The rate adjustment for FedEx Freight ranges from 5.9% to 6.9%, depending on the shipping rate schedule. The rate change applies to shipments within the United States, including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands. In addition, it also applies to shipments between the contiguous United States and Canada.

Overall, this year's rate increase is 1% lower than the previous year. FedEx explained that the temporary rate adjustment will help the company cope with the changing operating environment and the incremental costs associated with it. At the same time, it will also promote the company's continued investment in the logistics network, such as service improvements, fleet maintenance, technological innovation and other updates aimed at improving customer experience and operational efficiency.

FedEx also announced specific dates for changes to some surcharges, as follows:

Customs Clearance Service Fees: Effective January 1, 2024, FedEx will increase the customs clearance service fees applicable to import operations.

Additional Handling Surcharge and Oversized Package Fees: Effective January 15, 2024, FedEx will increase the additional handling surcharge and oversized package fee structure for international multi-piece shipments.

2023 Holiday Season Surcharge

Like previous years, FedEx will also charge a peak season surcharge during this year's holiday season, but the difference is that FedEx has decided to rename it a "demand" surcharge.

Demand - Additional Handling Surcharge: Applies to U.S. Express Package Services, U.S. Ground Services, and International Ground Services from October 2, 2023 to January 14, 2024. The surcharge is $6.95 per package.

Demand - Oversized Package Fee: Applicable to U.S. Express Package Service, U.S. Ground Service, and International Ground Service from October 2, 2023 to January 14, 2024. The surcharge is $73 per package.

Demand - Ground Unauthorized Package Fee: Applicable to U.S. Ground Services, International Ground Services, October 2, 2023, through January 14, 2024. The surcharge is $410 per package.

Demand - Surcharge: This surcharge applies to FedEx Ground Economy service and has three applicable time periods and charge rates.

- October 30, 2023 to November 26, 2023, $1.60 per package

- November 27, 2023 to December 10, 2023: $2.60 per package

- December 11, 2023 to January 14, 2024: $1.60 per package

Demand - Residential Delivery Surcharge: October 30, 2023 to January 14, 2024, applicable to FedEx Express and FedEx Ground domestic residential packages in the United States (excluding FedEx Ground Economy and FedEx One Rate packages).

FedEx also intends to unify its operating units into a single entity called Federal Express Corporation by the middle of next year. While FedEx Freight will remain independent, other business units such as FedEx Express and FedEx Ground will be merged under the FedEx brand.

Editor ✎ Nicole/

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