FedEx Corp. announced today it will increase shipping rates effective Jan. 7, 2019, by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.
Rates for FedEx Ground category—which is used for the bulk of e-commerce orders—will increase by an average of 4.9%, as will FedEx Home Delivery. FedEx SmartPost shipping rates will also increase.
FedEx Ground delivers in one to seven business days, based on distance to the destination. With FedEx Home Delivery, customers can schedule shipments for times convenient to them—including evenings and on Saturdays for most locations. SmartPost is used to ship low-weight residential shipments and returns.
FedEx Freight shipping rates will increase by an average of 5.9%. 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.
FedEx, which is a shipping carrier for 190 retailers in the 2018 in the Internet Retailer 2018 Top 1000, raised rates by the same average percentage on Jan. 1, 2018.
In October, the United States Postal Service (USPS) revealed a list of proposed rate hikes for fiscal year 2019 that would raise prices on the kinds of shipping services used by Amazon.com Inc. and other e-retailers.
According to the proposal, rates for traditional parcel delivery—which applies to packages weighing more than a pound—would go up 9.3%, while the rates for lightweight packages would rise 12.3%. If approved by the Postal Regulatory Commission, the changes would take effect on January 27, 2019.
USPS also plans to raise the price of a first-class stamp by 10% to 55 cents. First-Class Package Service, a lightweight expedited service used primarily by businesses, including retailers, for fulfilling orders will move to zone-based pricing, which will make the shipping rate partially determined by the distance the package travels. This move, USPS says, will better align First-Class Package Service with its cost to the USPS.
The proposed changes in postal prices, came after months of pressure from President Donald Trump, who has been calling on USPS to dramatically increase the rates it charges Amazon for package delivery. Earlier this year, Trump pushed USPS officials to double package delivery rates paid by Amazon and other companies.
USPS is a shipping carrier for 189 retailers in the 2018 in the Top 1000.
United Parcel Service, a shipping carrier for 272 Top 1000 retailers, has so far not announced its 2019 rates.
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