FedEx announces 2026 rate increases

Late last week, Memphis-based global freight transportation and logistics services provider FedEx rolled out various rate hikes, set to take effect on January 5, 2026.

The company stated that FedEx package standard list rates for U.S., U.S. export, and U.S. import services will increase by an average of 5.9%. And it said that rates for FedEx Ground Economy, FedEx Ground Multiweight, FedEx International Premium, and FedEx International Priority Direct Distribution will also head up. As an example, On the package side, a 1-pound Zone 2 package will increase from $73.31 to $76.22 via FedEx First Overnight

Other announced increases addressed various new surcharges, which will also go into effect on January 5 and also for rates for FedEx Freight, the company’s less-than-truckload subsidiary.

For the former, additional handling surcharges will be applied to U.S. Package Services, International Package Services, FedEx International Priority Freight, FedEx International Economy Freight, FedEx International Deferred Freight, U.S. Express Freight Services, among other services, with the rates exceeding the 5.9% GRI.

And for the latter, it said that FedEx Freight rates will increase an average of 5.9%, applicable to the FXF PZONE, FXF EZONE, Offshore (includes FXF 300, FXF 303, FXF 352, and FXF 370 series), FXFC 1100 (Intra-Canada) rates, and Commodity rates (includes pallet, volume, or truckload), with FXF 1000, FXF 501, FXFM DD (Mexico Door-to-Door) rates and FXFM IMS (Intra-Mexico Shipment) rates will increase an average of 6.9%. 

Rob Martinez, founder of San Diego-based parcel consultancy Shipware told LM that while the headline increase is 5.9% on average for U.S. published rates, effective, January 5, 2026, there are other things requiring consideration, too, when looking at the rates. Those are in the form of what he called amplifiers like surcharges (oversize, residential delivery, extra handling, delivery area, etc.) also increasing and add up and now account for an average of one-third of a package’s overall cost when fuel surcharges are included. And he added that size continues to matter—in that larger and heavier packages incurring additional handling service fees and large package surcharges are slated yet again for increases, serving as an indication that “average” isn’t the real story for many shippers.   

“To be fair to FedEx, cost pressures are genuinely ongoing—labor, fuel, maintenance, real estate, last-mile delivery are all rising,” he said. “However, as of August 2025, inflation year-over-year was about 2.9%. So, the 2026 increase once again is roughly double CPI. How can FedEx continue to impose pricing that far outpaces historical inflationary trends year after year? Many shippers are near exclusively tethered to FedEx or UPS. The truth is that there are a limited number of alternative national carriers, and many shippers are concerned about switching costs and/or service reliability.”

As for steps shippers can take to mitigate these increases, Martinez offered up various strategies: 

• Review contracts: if you haven’t recently tested the market, it might be time to put your program out to bid. While the carriers are indeed margin oriented, they also cannot afford to lose package volume. Your business to FedEx may mean more to them than you might think. If you need help, there are many consulting companies like Shipware that can provide a free rate assessment;

• Audit your shipping profile: which shipments are triggering big surcharges (oversize, remote zip codes, dimensional charges, residential delivery, etc.). Perhaps eliminate those shipments or look for cheaper, alternative carriers to handle them. Also, look for opportunities to reduce dimensional weight or re-package to avoid “oversize” status;

• Shift more volume to cheaper services: e.g., slower ground multiweight / deferred services vs faster/air/express if timing allows;

• Explore alternative or regional carriers: sometimes smaller carriers offer deeper discounts, fewer surcharges, and preferred terms;

• Utilize better routing management: consolidate shipments, or perhaps induct into hubs—-or partner with “last mile” networks that do so;

• Invest in shipping software that helps you better understand total landed costs with all surcharges included; and

• Pass through or bake in shipping cost increases to pricing or customer charges (if feasible) so they don’t erode margins entirely. 

An analysis of the new FedEx rates published by Loop noted that the gap between the GRI and inflation underscores a clear carrier strategy: to enhance yield and profitability in a market shaped by sustained e-commerce demand and complex operational challenges.

“As shippers plan for 2026, the key is to look beyond the headline number,” the company said. “The actual cost increase will be unique to each company's specific shipping profile, dictated by the services used, package characteristics, and destination zones.”

The company added that the 5.9% GRI conceals much higher increases for specific weight brackets and longer shipping zones. As an example, it explained that the FedEx Ground minimum charge is going up to $11.99, moving up 5.9%, which it said nullifies discounts for many lightweight shipments. It also said that the Residential Surcharge for Ground and Home Delivery will rise 8.4%, placing a significant cost burden on e-commerce shippers.