Labor shortage, profit decline! FedEx will raise prices across the board next year!

It is learned that FedEx announced today that it will increase freight rates across the board starting January 3, 2022, including FedEx Express (express delivery), FedEx Ground (land transportation) and FedEx Freight (air transportation).

It is reported that the shipping rates of FedEx Express domestic, US export and US import services will increase by an average of 5.9%. FedEx Ground and FedEx Home Delivery shipping rates will also increase by an average of 5.9%. FedEx Ground Economy shipping rates will also increase.

The specific rate changes are as follows:

• Effective November 1, 2021, a fuel surcharge will be imposed on FedEx Express, FedEx Ground and FedEx Freight shipments.
• Effective January 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge that will apply when a pickup is performed and the shipment is not tendered to the carrier.
• Effective January 17, 2022, the rates for the International Delivery Out of Area Surcharge and the International Pickup Out of Area Surcharge will be determined based on the corresponding level of the ZIP code, postal code or city where the shipment originates.
• Effective January 17, 2022, a delivery and return surcharge will be added to packages shipped using FedEx Ground Economy service.
• Effective January 24, 2022, additional handling and oversize surcharge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the region where the shipment is located.

It is understood that FedEx's price increase is related to the tight job market and rising operating costs. In the first quarter report of 2022 released by FedEx recently, its profit fell by 11% in the three months ending August 31. In addition, the industry is in great labor shortage. Not only FedEx, but also its competitors UPS and DHL are also expanding their recruitment to meet the growing business needs.

Editor✎ Irene/

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