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September 16, 2019 6:15 PM, EDT

FedEx Announces 2020 Rate Increases

FedEx will raise rates in January of 2020 FedEx Express and Ground rates will increase 4.9%; FedEx Freight will increase 5.9%. (John Sommers II for Transport Topics)

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FedEx Corp. said on Sept. 16 that its customers will see shipping rate increases and surcharges effective Jan. 6, 2020.

The hikes will be in the Express, Ground and Freight divisions. However, the Memphis, Tenn.-based company said that for the third year in a row it will not apply additional residential surcharges during the holiday season, except for shipments that are oversized, unauthorized or that require additional handling.

RELATED: FedEx reports weaker Q1 earnings

The new rates will be as follows.

  • FedEx Express shipping rates will increase by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.
  • FedEx Ground and FedEx Home Delivery shipping rates will increase by an average of 4.9%. FedEx SmartPost shipping rates also will increase.
  • FedEx Freight shipping rates will increase by an average of 5.9% for shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands) and between the contiguous U.S. and Canada. FedEx Freight shipping rates also will increase for shipments within Canada, within Mexico, and between the contiguous U.S. and Mexico.

Also in January 2020, new FedEx Express, FedEx Ground and FedEx Freight surcharge changes will take effect.

Applicable services, criteria and pricing for FedEx Express and FedEx Ground packages that require additional handling or are oversized will change.

There will be changes to applicable surcharges for FedEx Express and FedEx Ground fuel surcharge assessment.

Applicable criteria for the FedEx Freight Capacity Load minimum charge also will change.

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The list of Delivery Area Surcharge ZIP codes for FedEx Express, FedEx Ground and FedEx SmartPost also will be changed effective Jan. 6.

The announcement of the rate hikes comes just one day before FedEx’s leadership will reveal its first-quarter fiscal-year earnings. The company has said 2020 is a transition year as it plans to capitalize on the tens of millions of dollars it has spent to improve its technology. The parcel company also ended its ground-shipping contract with Amazon.com, saying the move was part of a strategy to focus on the broader market while Amazon is building up a shipping network of its own.

Earlier this year, FedEx announced it plans to offer seven-day residential delivery in the U.S. as it seeks to capture more of the e-commerce surge.

FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

Details of all changes to rates and surcharges are available at http://fedex.com/rates2020.