While FedEx has announced a 5.9% average net increase for 2022, lightweight Ground and Home Delivery packages are receiving far above this average. The 1-to-20-pound weight breaks show the most substantial increase, topping out at 7.46%, while the 71-to-100-pound weight break falls a bit under the average at 5.73%. When looking at Ground shipments by zone, zones 5-8 increase a bit more than zone 2-4 but there isn’t too much disparity.
Not only have the rates gone up significantly, but FedEx is also increasing their Ground services minimum charge by 6.85% for 2022. The base rate will rise from $8.76 to $9.36. This significant bump affects Ground Commercial, Ground Residential and Home Delivery. Regardless of how good shipper’s discounts may be, this limit means shippers will be paying more for their lightweight packages. The most impacted weight break is 1 to 5 pounds, but don’t be surprised when this minimum hits shipments weighing 20 pounds or more. The FedEx agreement and how it is set up will determine which pounds per zone are impacted.
