FedEx announced their 2025 General Rate Increase on September 13th to be Effective January 6, 2025.
Similar to the increase in 2024, FedEx Ground, Home Delivery, Express, and WW International rates will see increases averaging 5.9%. Accessorials, fees, and surcharges (on the other hand) remain a focal point in some cases increasing over 33% when compared to those same fees in 2024. Oversize and Additional Handling rates take back-to-back hits… another 28%
Ground Economy and Ground Multi-Weight rates have not been announced. We will continue to monitor for updates and relay any changes to our clients as soon as information becomes available.
All increases are based on “service level” averages. Additional changes in fees and surcharges will vary based on individual characteristics and product mix. Let’s break it down in more detail…
GROUND
The 1 LB Zone 2 rate (Ground Minimum charge) will increase 5.79%, up from $10.70 to $11.32.
Encouraging news…sort of… since 2024 Ground Minimum increase was at 7.91%.
Lightweight packages (1-10 LB range) will experience increases ranging from 4.44%-5.93%. Heavier Packages (10+ lbs.) will experience increases similar last year ranging from 4.8%-7.2%. Increases appear evenly distributed Zones 2-8
What does this mean for 2025?
Let’s look at an example: 1 LB, Zone 8, Home Delivery package to a rural destination.
2025: $26.32: Base rate ($14.17), HD Surcharge ($5.95), DAS ($6.20), ***FSC excluded
2024: $24.63: Base rate ($13.38), HD Surcharge ($5.55), DAS ($5.70), ***FSC excluded
An increase of 6.90% for the same package 2025 vs 2024!
EXPRESS & INTERNATIONAL
Priority Overnight and Standard Overnight shorter zone packages will see increases averaging 5.9%-8.4%.
Longer zone, heavier packages seeing on target increases of 5.5% to 6.20%.
Two Day Air increases will range from 5.90%-7.90%. Application of increases appear slightly higher in shorter zones (2-4) vs longer zones (5-8).
Express Saver will increase from 4.5% to 7.90%, longer zones (305-308) taking on the brunt closer to 7.9%
FedEx International Priority Export will see increases ranging from 5.9% to 7.9% while FedEx International Economy Export will see slightly less increases ranging 5.20%-6.90%. Once again actual Impact of these changes will depend on zone/product.
KEY ACCESSORIAL CHANGES
Additional Handling:
Increases will depend on both element and zone:
AHS via Dimension (25.93%-27.27%)
AHS via Weight (26.09%-26.70%)
AHS via Packaging (26.00%-28.21%)
Address Corrections:
Increase an additional $1.50, 6.67% up to $24.00 per occurrence.
Oversize Charges:
Ground/Express packages will incur additional increases ranging from 26.08% to 28.57%.
Home Delivery packages slightly lower with increases ranging from 26.31% to 27.08%.
Delivery Area Surcharge:
Increases across the board.
DAS Commercial: Increases 6.32%-8.77%.
DAS Home Delivery: Increases 7.79%- 8.77%.
Home Delivery Residential Surcharge:
Increases 7.20% from $5.55 to $5.95.
Express Residential Surcharge:
Increases 6.50% from $6.15 to $6.55.
Ground Unauthorized Package Charge:
Increases 6.00% from $1,250 to $1,325.
For additional details and a NO COST cell by cell rate impact analysis, please contact AFMS at (800) 246-3521 or email us at info@afms.com.
