Breaking News: Recently Announced FedEx® GRI Different from UPS®

by | Sep 20, 2016

2 min read


FedEx® announced on September 19, 2016 a General Rate Increase (GRI) of 3.9% for US domestic, US export, and US import services. The new rate is a departure from UPS, who recently announced their GRI of an average net of 4.9% for UPS Ground, Air, and International Service. FedEx’s new rates will be effective January 2, 2017.

From the FedEx website:

  • FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services.
  • FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. FedEx SmartPost rates will also change.
  • Effective January 2, 2017, the FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will change from 166 to 139.
  • Effective February 6, 2017, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis. Currently, adjustments are made on a monthly basis with a two month lag between the U.S. Government published fuel indexes and the fuel surcharges. Adjusting on a weekly basis will reduce lag time from two months to two weeks, thus providing a closer alignment between fuel costs and fuel surcharges at the time of shipment.
  • The FedEx SameDay City pricing changes for calendar 2017 will be announced later this year.
  • FedEx Freight will increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
  • Effective January 2, 2017, the FedEx Freight Extreme Length surcharge will change from $85 to $150 and will be applied to shipments with dimensions of 12 feet or greater versus the prior 15 feet.
  • Details of all changes to rates and surcharges are available at:

Because these numbers reflect an average net increase for rates across the board, your rates may not be uniformly increased by 3.9%; some will be higher than others depending on services, while others will be lower. This means that shippers utilizing FedEx as their carrier must have deep data and insights into their shipping profile in order to understand the GRI’s true impact.

For help understanding and limiting how FedEx’s new GRI impacts your business, contact VeriShip.