On September 7, 2023, FedEx announced its 2024 General Rate Increase (GRI). Below are some key components to this GRI to be aware of for 2024 planning and beyond.
- This is lower than last year’s historically high 2023 number at 5.9%. In 2023, FedEx announced a team year high number of 6.9%. This year, the average announced rate increase is a percentage point lower than last year’s.
- Inflation is also impacting this number. Given the rate of inflation, shippers may feel this number even more.
*Inflation Data Sourced From www.bls.gov. 2023 Inflation Is Current Rate As of 12/2/2022.
- Watch out for Delivery Area Surcharges (DAS). Delivery area surcharges now average a 7.5% increase.
- Watch out for Residential Surcharges: Home Delivery Residential Surcharge increased by 7.8% from $5.15 to $5.55. The Ground Residential Surcharge is also now the same as Home Delivery at $5.55.
- Additional Handing Surcharges and Oversized are increasing by 20%. Additional Handling and Oversized Surcharges are among the highest increases ranging from 19.5% for Additional Handling Surcharge to Zones 3-4 at 21.1% and Oversized Home Delivery to Zones 3-4 at 20.6%.
- Ground Minimums are increasing to $10.70. This marks a 5.9% rate increase aligning with the average rate increase.
Overall, this rate increase aligns with ones in years past. Below is a comprehensive trend against 5-year and 10-year numbers.
Avg FedEx Transportation Increase based on Average Annual Increases
(Zone 2-8, 1-150 lb.)
| 2024 | 5 YR | 10 Yr. | |
| Priority | 6.0% | 5.7% | 5.3% |
| Standard | 6.1% | 5.7% | 5.5% |
| 2 Day | 6.8% | 6.1% | 6.3% |
| Express Saver | 6.4% | 7.7% | 7.0% |
| Ground/HD | 6.2% | 5.8% | 5.0% |
| Int Priority Export | 6.4% | 6.0% | 5.7% |
| Int Priority Import | 5.5% | 5.5% | 5.1% |
There are ways to mitigate this annual impact – service utilization options, carrier diversification, etc. To learn more about our parcel optimization solutions or how we can help, click here.
