For shippers primarily using international services, they should expect closer to an 8% increase in freight costs alone. For ground services, the increase comes in at 6.6%, however, express services vary from 6.6% for First Overnight to as high as 9.95% for Express Saver. The 6.9% rate increases communicated by FedEx are not a consistent increase across all services, but simply an average. If history is any indication, UPS will likely follow with similar increases, so shippers of all sizes should be asking themselves, what are these changes, how do they affect me, and what can I do to mitigate these increases? Like in past years, this announcement came with a series of increases and changes to other accessorial charges, which, depending on each shippers’ profile, will drive that increase well above 6.9%. Following years of consistent increases at 4.9%, last year’s increase of 5.9% has been surpassed once again by a 6.9% increase effective January 3 rd, 2023. On September 22 nd, FedEx customers learned that they would endure the largest rate increase in FedEx’s history, after a year defined by record high fuel prices and rising costs across the board.
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