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6 Things to Know about FedEx’s 2024 GRI Announcement

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.     *Inflation Data Sourced From www.bls.gov.  2023 Inflation Is Current Rate As of 12/2/2022. Overall, this rate increase aligns with ones in years past. Below […]

Robyn Meyer
Sep 8, 2023 — 2 Min Read
semi truck driving down a highway

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.

  1. 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.
  1. Inflation is also impacting this number. Given the rate of inflation, shippers may feel this number even more.

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*Inflation Data Sourced From www.bls.gov.  2023 Inflation Is Current Rate As of 12/2/2022.

  1. Watch out for Delivery Area Surcharges (DAS). Delivery area surcharges now average a 7.5% increase.
  1. 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.
  1. 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%.
  1. 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.

About Author:

Robyn Meyer
Senior Vice President, Parcel Strategy & Solutions

Robyn is the Senior Vice President of Parcel Strategy & Solutions at Transportation Insight, leading small parcel strategy and solution development across various platforms and transportation modes. With nearly 26 years of experience, she specializes in e-commerce and international trade compliance. Robyn enhances digital supply chain platforms by addressing common shipper challenges and driving innovation.

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