The headline from FedEx is their rates are going up 5.9% next year. But the GRI isn’t showing its true self with that number. 2025 is shaping up to be the year of the surcharge. And now is not the time to be distracted by the ‘it’s the same increase as last year’s GRI’ headline. Most FedEx customers’ costs will go up more than 5.9%.
Below is OUR expert first impression of the FedEx GRI announcement and three key takeaways.
- The average surcharge increase is 13%, but many of the most used surcharges are increasing by 6 to 27%.
- Additional Handling Surcharge (AHS) and Oversize Surcharge (OS) are going up a massive 27%.
- Ground increases are softer (5.1%) at lower weights (1 to 10 lbs.) but average over 6.2% at weights from 11 to 99 lbs.
Here are more examples and details on noteworthy increases to common rates and fees.
- Our analysis is high AHS and OS increases signal that non-holiday demand surcharges are going away once the current demand surcharges expire in mid-January 2025. Will UPS follow suit?
- The average increase for Residential and Delivery Area Surcharges (DAS) is 7%.
- Priority Overnight (PO) and Standard Overnight (SO) Zone 3 shipments in the 6 to 75 lbs. range will increase by an average of 7.7%.
- Two Day and Express Saver will increase an average of 7.6% for packages weighing 1 to 99 lbs. going to Zones 5 to 8.
We’re still hard at work looking at ALL the critical details of the announcement, and there’s plenty more to come.
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