On August 29, 2023, FedEx announced its 2024 General Rate Increase. The 5.9% average increase by FedEx was lower than last year’s 6.9%. On September 7th UPS also announced their GRI at 5.9% however the details have not yet been released.
While FedEx announced a 5.9% average increase many shippers will likely see higher increases. Below is further detail highlighting the specific increases.
Domestic Express
Looking at domestic express service zone 2-8 and under 150 pounds each service is seeing over the advertised 5.9% increase. 2 Day will see the largest increase of all express services at 6.83%.
2024 Domestic Express Minimums and Percent Increase
The chart below shows the average increase by zone for each domestic express service. 2 Day and Express Saver are seeing an increase below the published 5.9% in lower zones but are seeing a nearly 8% increase at zone 5 and above.
Ground
The overall Ground increase in 2024 will be 6.19%. The Ground Minimum increase is 5.94%. The published 1 lb. zone 2 rate will go from $10.10 to $10.70. In 2023 FedEx focused increases on 1-5 lbs. shipments with an average increase of 7.34%. This year those lower weight shipments will see only a 5.49% average increase.
When looking at the average Ground increase by zone zones 4-8 will see a much larger increase while zones 2 and 3 are below the 5.9% average.
*This is a range between CL 60 and CL 400. These density-based classes do not go up to CL 500, nor go down to CL 50.
Accessorial
While FedEx did not announce the increase to their full list of surcharges, they did provide the 2024 rates for the most common. Nearly all surcharge increases are above the 5.9% advertised increase with Additional Handling and Oversize being the largest at around 20%. Residential Ground will increase less than 1%, in 2024 the Ground Residential Surcharge will match the Home Delivery Residential charge at $5.55.
