FedEx will increase its shipping rates starting in the new year. The company made this announcement on Monday. The increase in shipping price will be in effect from January 3, 2022. This will apply to US domestic, US export and US import services.
The FedEx Ground will deliver to businesses, and home delivery will increase by an average of 5.9%. FedEx Freight customers could see an increase of up to 7.9%. The company also added that the Freight shipping rates will also increase for shipments within Canada and Mexico, as well as between those countries and the contiguous United States.
The customers of the shipping company may also see a price increase before the holiday season. Starting Nov. 1, a fuel surcharge will be added to certain FedEx shipments, including Express, Ground and FedEx Freight shipments. The company said that these increases in changes reflect incremental costs associated with the challenging operating environment.
Last month, the USPS requested a temporary price increase on a variety of mail services for the peak holiday season to offset rising delivery costs. A similar price increase had been implemented during the 2020 holiday season. Global shipping is still in crisis, with backlogs looming over the holiday period. With both supply chain delays and soaring consumer demand, shipping containers have become backed up, making it much more expensive for companies to ship their goods.