Fall may have just arrived, but FedEx is already thinking about 2025. On September 13, the carrier announced its 2025 rate hikes, which will take effect on January 6. What is the latest increase? Which parcels are affected? And is there anything you can do to offset the 2025 FedEx rate increase? We'll tell you everything you need to know!

What is the 2025 FedEx rate increase?

Beginning January 6, 2025, FedEx will raise its pricing by an average of 5.9%. Next year's increase is equal to the one in 2024 and slightly less than the unprecedented 6.9% rate hike of 2023.

Let's put the new rates into perspective, though. When FedEx announced its 5.9% rate increase in 2022, it was the most significant addition in a decade. What was once an anomaly has become the new norm.

The 2025 increases come on the heels of this year's new delivery area surcharges, inflated fuel surcharges, and additional handling charges.

Which FedEx services are subject to the new 2025 rate hike?

The rate increases impact FedEx package and freight standard list rates within the US and US import and export services.

Services affected by the increase include FedEx Ground Economy, FedEx Ground Multiweight, FedEx International Premium, and FedEx International Priority DirectDistribution. Pricing for FedEx One Rate and retail will also change.

In addition to the standard list rate increase, FedEx released a document with 5.5 pages worth of increased fees and surcharges that will also take effect in January. Here are just a few changes coming in 2025:

●       The Residential Delivery Charge will increase from $5.55 to $5.95 per package for FedEx Ground, Home Delivery, and International Ground Shipments

●       Delivery Area Surcharges will increase from $5.85 to $6.20 per package for FedEx First Overnight, Priority Overnight, Standard Overnight, 2Day A.M., 2Day, Express Saver (Residential) and from $5.70 to $6.20 per package for Ground and Home Delivery Shipments (Residential)

●       Third-party billing will increase from 4.5% to 5% of transportation charges, surcharges, and additional fees (not including duties, taxes, and clearance service fees)

FedEx defends the increases, saying the fees enable the carrier 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."

Is it possible to avoid the 2025 FedEx rate increase?

While shippers rely on carriers to deliver parcels, carriers need shippers, too. In a period of soft demand compared to the height of COVID-19, FedEx and rival UPS are more open than ever to negotiations that reduce base rates and surcharges.

ShipRx offers a free savings analysis that can save you hundreds of thousands of dollars on shipping costs. We start by unraveling your carrier shipping expenses, reviewing your costs and contract terms, and providing a report with detailed recommendations. On average, ShipRx clients save 30% on shipping costs when working with us.

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