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FedEx Announces 2021 Rate Increases Effective January 4th, 2021

On September 14th, 2020 FedEx Corp. announced a GRI (General Rate Increase) for FedEx Express, FedEx Ground including Home Delivery, and FedEx Freight Services that will go into effect on January 4th, 2020.

"These rate changes enable FedEx to continue investing in service enhancement, fleet maintenance, technology innovations and other areas to serve customers more effectively and efficiently."

FedEx Shipping Rate Changes* - Direct from FedEx Website

Beginning January 2021

Beginning January  2021, FedEx will charge a 6% late fee to U.S. FedEx Express and FedEx Ground customers who don’t pay their invoice within their agreed upon payment terms. Details on this change can be found here.

Effective Jan. 4, 2021

  • FedEx Express, FedEx Ground, FedEx Home Delivery®, FedEx SmartPost® and FedEx Freight rates will increase.
  • There will be changes to shipping surcharges and fees that may apply to your shipment and affect your total shipping rate.

Effective Jan. 18, 2021

The following FedEx Express, FedEx Ground and FedEx Freight surcharge changes will also take place effective Jan. 18, 2021:

  • There will be changes to how Additional Handling Surcharge is assessed for FedEx Express and FedEx Ground packages.
  • FedEx Freight will introduce a High Cost Service Area Surcharge that applies to certain shipments.
  • Certain U.S. locations will be assessed an International Out-of-Delivery-Area Surcharge or an International Out-of-Pickup-Area Surcharge for FedEx International Express Freight® services.
  • Details on these changes can be found here.

Effective Feb. 1, 2021

Effective Feb. 1, 2021, there will be changes to how fuel is assessed for U.S FedEx Express Freight shipments. Preview the fuel surcharge table effective Feb. 1, 2021.

Updated Aug. 18, 2020

As the impact of COVID-19 continues to generate a surge in residential deliveries, we are entering this holiday peak season with extremely high demand for capacity and are experiencing increased operating costs across our network. We anticipate residential volume to continue to surge into the new year.

To continue providing our customers with the best possible service during this challenging time, we are implementing several surcharges and fees. The surcharges implemented on June 8, 2020, have an updated effective period, which now includes an expiration date.

For the rate change information, click here

For more information on the FedEx response to COVID-19, click here.  

Updated Aug. 6, 2020

We announced a temporary surcharge on all FedEx Express® and TNT international parcel and freight shipments beginning April 6.

We implemented this surcharge due to the various COVID-19 containment restrictions issued in countries around the world. Those restrictions are disrupting the global supply chain. As a result, air cargo capacity is limited, and we are incurring incremental costs as we adjust our international networks to best deliver much-needed goods and services in this constrained environment.

This surcharge does not apply to domestic shipments.

For the rate change details, click here.

For more information on the FedEx response to COVID-19, click here.

FedEx Express and FedEx Ground Rates

Effective Jan. 4, 2021

FedEx Freight Rates

Effective Jan. 4, 2021

*Please check your FedEx shipping agreement to determine the net impact of these changes on your shipping costs.


General Rate Increases are not new and happen at least once a year in late Summer or Fall. It is imperative that you analyze your current rate agreement, discounts, and incentives to see how these changes could effect your bottom line.

It is important to note that the minimum charge for FedEx Ground will move to $8.76. This is a 6% increase over the minimum set for last years GRI.  Keep in mind that this is a negotiable item that you can discuss with FedEx or might already have something in place.

FedEx will now start charging a Late Payment Fee in the amount of 6% which coincides with UPS policy should a payment of an invoice Net 15. If you have concerns making payments on-time you should consult with FedEx to get longer Net Terms.

Increases continue to climb for large packages going through the parcel pipelines encouraging shippers of these products to consider alternative methods for shipping and analyze packaging dimensions. Additional Handling surcharge based on dimensions will have a threshold of 105 inches in combined length plus girth (Girth =2 x height + 2 x width, so it becomes length + 2 x height + 2 x width < 105).

The announced 4.9% average increase is not the "norm" for most shippers especially those that are in the 2 and 3 day FedEx shipments, mostly ship large packages, mostly low weight Ground Home Delivery, used to seeing high surcharge costs, or occasionally make late payments. A shipper in these categories will see increases well above 6%. Frequent surcharges such as Residential Surcharge for Home Delivery and Extended Delivery Area Surcharges are increasing 8.75% and 9.26% respectfully.

Know how these changes will effect your shipping characteristics and make any necessary and possible changes to mitigate your transportation spend for 2021. 

Ship Watchers is a logistics auditing company that keeps carriers compliant on rates, surcharges, incentives, and incorrect charges found within carrier invoices.  

Want to stay on top of carrier increases, rate changes, and benchmark studies while insuring that your invoices are free from errors and incorrect charges?  Give us a shout to learn more at or by calling us at 800.550.7217 ext 874.

No term agreements, no additional effort, and no additional fees...  Just a small percentage of the savings we bring to your carrier accounts directly through our auditing process.

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  1. Rick R.

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