FedEx announced that, beginning January 2, 2023, its rates will increase by 6.9%. Following a 4.9% annual increase from 2012 to 2021 and a 5.9% increase for 2022, this is their greatest general rate increase (GRI) in history. The increase was attributed to Covid.
The rise is “their response to inflationary pressures on our costs,” according to FedEx EVP and Chief Customer Officer Brie Carere, who also noted that FedEx observed lower-than-expected package traffic for the most recent quarter and fiscal year.
Also of note:
- Rates are increasing more for the longer zones (6-8) than for the closer ones.
- New Delivery Area Surcharge changes: Almost 4,000 zip codes in the contiguous United States will see a $13.25 fee added for any delivery starting January 30, 2023.
- FedEx plans to cut costs by up to $2.7 billion in fiscal year 2023 by combining its “package sortation activities, postponing or canceling Ground facility developments, and decreasing linehaul expenses” to reflect the decrease in package volume.