2021 FedEx General Rate Increase: A High-level Breakdown

FedEx announced a rate increase along with a late payment fee. The general increase affects each shipper differently. This year FedEx has focused on residential deliveries, larger packages, ground packages below 5 lbs. and packages that ship to higher zones. Below is a summary on the main items.

Late Payment Fees

FedEx has followed UPS in applying a late payment fee. When either carrier creates a new penalty or surcharge, the other carrier follows very quickly. Starting in January 2021, FedEx will now charge a 6% late payment fee to customers who don’t pay their invoice according to the payment terms.

Rate Increase

FedEx announced that the shipping rates for FedEx Ground, FedEx Express, and FedEx Home Delivery will increase by an average of 4.9%. This is an average of all weights and zones so this will affect each individual customer differently. They have focused a larger increase on ground packages under 5 lbs. You will find further details below on this increase. The increase is also larger on longer zones.

There will be an increase on Smartpost, Ground Mulitweight and International Premium rates, but the specifics of those increases have not been made available yet.

Ground Minimum

The ground minimum is based on the list rate for Zone 2 and 1 lb. That rate has increased almost 6.5% from $8.23 to $8.76.  There is an increase of over 6% on all packages weighing between 1 and 5 lbs- further evidence that FedEx is focusing on the lower weight packages.


The general increase of 4.9% is somewhat misleading in relation to surcharges since most of the main surcharges have a larger increase.

Below is a list of some of the main surcharge increases: