In the ever-evolving world of logistics, it's often a game of "follow the leader"— especially when it comes to shipping rates. Recently, FedEx has followed in the footsteps of its rival, UPS, by implementing its own set of increased charges. Understanding these adjustments is key to navigating the landscape of parcel delivery without breaking the bank.

Both FedEx and UPS kicked off 2025 with a general rate increase (GRI) averaging 5.9% across most of their services. Throughout the year, the carriers have added fees and surcharges to boost their bottom line, including UPS's June 2 updates. Not to be left behind, FedEx introduced three changes that took effect over the past two weeks. We'll discuss the new updates, which services are affected, and whether you can avoid the financial impact.

Late Payments Just Got More Expensive

As of June 1, the Late Payment Fee has increased by nearly 2%, from 8% to 9.9% of the total past-due balance. Consider this your reminder to set up automatic payments to avoid late fees.

The Delivery Area Surcharge ZIP Code List Gets a Makeover

Delivery Area Surcharges are nothing new. However, the June 2 update to the ZIP code list adds, moves, or removes hundreds of locations from the Contiguous US, Contiguous US Extended, and Contiguous US Remote lists.

The June 9 FedEx Surcharge

As of Monday, June 9, domestic package and express freight services FedEx Ground, FedEx Home Delivery, FedEx International Ground, FedEx International, and FedEx Freight are subject to a new fuel surcharge table.

For example, until June 1, 2025, FedEx Ground, Home Delivery, and International Ground Services were subject to a fuel surcharge rate of 17.75%. Now, with a US Energy Information Administration-reported on-highway diesel fuel price of $3.451 on June 2, the fuel surcharge will be 19.75%. The surcharge list begins at 19.5%, ensuring a boost to the carrier's bottom line this summer.

Why the Increases?

On the FedEx webpage explaining the latest fee updates, the carrier explained, "We regularly evaluate our shipping rates and fees and adjust them when needed. This enables us to keep investing in our business so we can continue delivering the shipping solutions you need and the excellent service you've come to expect from us."

These rate adjustments reflect the ongoing pressures of inflation, increased labor costs, and investment in infrastructure and technology. Additionally, carriers leverage surcharges to improve profitability, as these can have a disproportionately higher impact on overall shipping costs compared to the general rate increase.

What Can Shippers Do?

Mid-year fee changes may be the new normal, but that doesn't mean you should simply accept them.

A robust negotiation strategy is not just about saving money; it's about optimizing your entire shipping operation for long-term success. When businesses partner with ShipRx for FedEx contract negotiations, we often lower their rates by 20-30%. Are you leaving money on the table?

Following the leader is a game for the carriers. Contact ShipRx and chart your own money-saving path.