30 Sep 2021 Fedex GRI Insights – What To Watch For In The Higher Rates
FedEx recently announced a 2021 GRI of 4.9% for their FedEx Express, FedEx Ground, and FedEx Freight Services. This general rate increase will go into effect on January 4, 2021, according to the company.
If the FedEx GRI of 4.9% sounds familiar, that’s because it’s the same GRI that FedEx announced a year ago. However, as you learned in 2020, your overall shipping costs with the carrier are likely to be different than this average figure. In part, that’s because accessorials, fees, and surcharges will see an increase of 4.9% to 9.5%, according to Multichannel Merchant. Of note, parcels weighing 1 to 5 lbs. will go up an average of 6.6%. While that increase is relevant to most everyone, it is an especially tough blow to e-commerce shippers.
In fact, the rapid rise of e-commerce volume during the Covid-19 pandemic has spurred carrier demand and tightened shipping capacity. In addition, costs are rising for labor, automation technology, and warehousing space.
Some shippers were fortunate enough to have their revenue tiers temporarily frozen due to Covid. However, with peak season approaching you can expect that to soon end. Further, in 2021, FedEx will increase the ground minimum rate from $8.23 to $8.47 per parcel. That’s relevant because even if your business negotiates a discounted rate, shippers cannot be billed below the minimum rate.
To learn more about the 2021 FedEx GRI, see the current FedEx rate schedule. Also, take note that FedEx announced 2021 modifications and additions to nearly 40 other accessorials, fees, and surcharges, including a new 6% late fee on unpaid invoices.
If you need help determining how these rising shipping rates, surcharges, and fees will affect your business, let’s talk! SSI can provide expert analysis that will empower you and your team to plan, budget, and make knowledge-based decisions on how to save money and best allocate your freight spend before 2021 arrives.
SSI transforms the complexity of freight audit and freight payment into cash savings and supply chain intelligence, providing actionable insights to maximize your profit potential.
- Customizable solution scales with your growing and dynamic business needs
- Automated freight audit drives savings to the bottom line
- Cutting-edge data visualization facilitates analysis
- Actionable business intelligence supports supply chain optimization and operational efficiencies
Do the 2021 FedEx GRI and other fast-rising freight costs have you scrambling to save money? Fill out the form below and we will be in touch with you shortly.