FedEx recently announced that, effective January 6, 2025, its package and freight rates will increase by an average of 5.9%. This FedEx 2025 rate increase will affect standard rates for U.S. domestic express, import, and export transportation, including services such as Ground Economy, Ground Multiweight, International Express, International Priority Direct Distribution, Freight Priority, and Freight Economy.

According to FedEx's official statement, this rate adjustment will also raise surcharges for certain parcels, particularly those delivered to residential areas, specific ZIP codes, and packages requiring special handling. Sellers should closely monitor these FedEx shipping cost adjustments, especially those shipping heavier packages, delivering to residential locations, or serving rural areas, as these adjustments will directly impact shipping costs.

FedEx has a history of annual rate increases, and this year’s 5.9% hike is consistent with the rate rise introduced at the beginning of 2024. The company stated that the new pricing structure will support business investments and help maintain a high level of service quality.

Additionally, the price increase for FedEx’s two-day air service may exceed the average rate hike. While some shippers might consider switching to ground services to avoid the higher costs, long-distance ground shipping rates are expected to rise even more. FedEx has emphasized its commitment to fulfilling the common two-day delivery promise, which means shippers will likely need to pay more for faster delivery options due to this FedEx 2025 rate increase.