What You Need to Know About 2019 FedEx Shipping Rates

If you run a business that requires regular shipping, then you know just how important it is to be aware of any changes in shipping rates. As we move into 2019, FedEx has announced their updated shipping rates, which can have a significant impact on your business’s shipping costs. In this article, we’ll explore everything you need to know about the 2019 FedEx shipping rates in detail.

How FedEx Shipping Rates are Determined

The FedEx shipping rates are based on a range of factors, including the weight and size of the package, the distance it needs to travel, and the shipping service used. These factors are then taken into account, along with any additional services that may be required, such as insurance or signature confirmation, to determine the final shipping rates.

Another factor that can affect FedEx shipping rates is the type of item being shipped. Some items, such as hazardous materials or perishable goods, may require special handling or packaging, which can increase the cost of shipping. Additionally, the destination country may have specific regulations or fees that need to be taken into account when determining the final shipping rates.

It’s important to note that FedEx offers a variety of shipping options, including express, ground, and freight services, each with their own pricing structure. Customers can also take advantage of discounts and promotions, such as volume discounts or special rates for certain industries or shipping destinations. By understanding the factors that go into determining FedEx shipping rates, customers can make informed decisions about their shipping needs and find the most cost-effective solution for their business.

Comparison of 2018 and 2019 FedEx Shipping Rates

The 2019 FedEx shipping rates are higher than those of 2018, but the rate of increase varies depending on the service used. For example, the FedEx Ground rates have increased by an average of 4.9%, while the FedEx Express rates have gone up by an average of 3.9%.

It is important to note that the fuel surcharge for FedEx shipments has also increased in 2019. This surcharge is based on the price of fuel and can fluctuate from month to month. As of January 2019, the fuel surcharge for FedEx Ground and FedEx Express shipments is 5.5% and 6.5%, respectively. This means that the total cost of shipping may be higher than expected, especially for larger or heavier packages.

Understanding the Different Pricing Zones for FedEx Shipping

FedEx has divided the United States into nine different pricing zones, each of which has a different rate. Knowing which zone your shipments fall into is important, as it can impact the final shipping cost. You can use FedEx’s zone locator tool to determine which specific zone your shipment falls under.

It’s important to note that the pricing zones for FedEx shipping are not just based on geographic location. The weight and dimensions of your package also play a role in determining the zone and ultimately the cost. For example, a small, lightweight package may fall into a lower pricing zone than a larger, heavier package being shipped to the same location.

In addition to the pricing zones, FedEx also offers different shipping options such as ground, express, and international. Each of these options has its own set of rates and delivery times. It’s important to consider your specific shipping needs and budget when choosing the best option for your shipment.

How to Calculate Shipping Costs with the New Rates

With the new FedEx shipping rates in place, it’s important to know how to calculate the final shipping costs. Fortunately, FedEx provides a range of online tools, including a shipping rate calculator that factors in the weight, dimension, and destination of your package, along with any additional services required.

It’s also worth noting that FedEx offers discounts for certain types of shipments, such as those sent to residential addresses or to multiple locations. Additionally, if you frequently ship with FedEx, you may be eligible for volume discounts. Be sure to check with your FedEx account representative to see if you qualify for any of these cost-saving options.

Tips for Reducing Shipping Costs with FedEx in 2019

While the new FedEx shipping rates may seem daunting at first, there are ways to reduce your business’s shipping costs. Possible strategies include negotiating better rates with FedEx, consolidating shipments to take advantage of bulk rates, and considering alternative shipping services or carriers.

Another way to reduce shipping costs with FedEx is to take advantage of their packaging options. FedEx offers a variety of packaging materials, including boxes, envelopes, and tubes, that are designed to fit a range of items. By using the appropriate packaging, you can avoid oversize or overweight fees and save money on shipping.

Additionally, it’s important to be aware of any additional fees that may be added to your shipment. FedEx charges extra for services such as signature confirmation, Saturday delivery, and residential delivery. By understanding these fees and avoiding unnecessary services, you can keep your shipping costs low.

Impact of the New Rates on Small Business Owners

Small business owners can be particularly impacted by changes in shipping rates, as they rely on shipping as a key aspect of their business operations. With the new FedEx shipping rates, small business owners should be prepared for higher shipping costs and may need to consider alternative shipping options or strategies for cost reduction.

One potential strategy for small business owners to reduce shipping costs is to negotiate rates with their shipping providers. By demonstrating a consistent volume of shipments and a commitment to a long-term partnership, small business owners may be able to secure lower rates from their shipping providers.

Another option for small business owners is to explore the use of regional carriers or local delivery services. While these options may not have the same level of national coverage as larger shipping providers, they may offer more competitive rates for local or regional shipments.

What Large Businesses Need to Know about the New Rates

Large businesses may have a different perspective on the new FedEx shipping rates, as they may have more negotiating power and may be able to take advantage of bulk shipping discounts. However, it’s important for them to understand the new rates and how they may impact their shipping costs in order to make informed decisions.

Additionally, large businesses should also consider the potential impact of the new rates on their customers. If shipping costs increase significantly, it may be necessary to adjust product prices or absorb some of the additional costs in order to remain competitive. It’s important for businesses to communicate any changes to their customers in a transparent and timely manner to avoid any negative impact on customer satisfaction or loyalty.

The Advantages and Disadvantages of Using FedEx for Shipping in 2019

While FedEx is a reliable and trusted shipping service, there are still pros and cons to consider when using the service in 2019. Reasons to continue using FedEx may include its wide network and range of services, while potential drawbacks may include higher shipping rates and the need to adjust to new pricing strategies.

One advantage of using FedEx for shipping in 2019 is its commitment to sustainability. The company has implemented various eco-friendly initiatives, such as using hybrid and electric vehicles, and investing in alternative fuels. This can be a selling point for businesses and individuals who prioritize environmental responsibility.

On the other hand, a disadvantage of using FedEx is its limited delivery options for certain locations. While the company has a wide network, there may be areas where it does not offer delivery or where delivery times are longer than competitors. This can be a significant factor for businesses that need to ensure timely delivery to customers.

How to Negotiate Better Rates with FedEx in 2019

If you want to reduce your shipping costs with FedEx in 2019, consider negotiating better rates. This can involve reaching out to your FedEx representative and initiating a conversation about rate reductions or exploring alternative shipping options that may offer lower rates.

One way to negotiate better rates with FedEx is to provide them with a detailed analysis of your shipping history. This can help them understand your shipping patterns and volume, which may lead to more favorable rates. Additionally, you can leverage your relationship with FedEx by committing to a certain volume of shipments in exchange for discounted rates.

Another option is to consider using FedEx’s SmartPost service, which is a collaboration between FedEx and the United States Postal Service. This service can offer lower rates for packages that are not time-sensitive and can take a few extra days to arrive at their destination. By exploring different shipping options and negotiating with your FedEx representative, you can find ways to reduce your shipping costs and improve your bottom line.

An Analysis of How the New Rates Will Affect eCommerce Businesses

eCommerce businesses, which rely heavily on shipping as a core component of their business model, may also be impacted by the new FedEx shipping rates. These businesses may need to adjust their pricing strategies to account for the higher shipping costs or consider alternative shipping options.

One alternative shipping option that eCommerce businesses may consider is partnering with a third-party logistics provider (3PL). 3PLs can often negotiate better shipping rates with carriers due to their high volume of shipments, which can help eCommerce businesses save on shipping costs.

In addition to adjusting pricing strategies and exploring alternative shipping options, eCommerce businesses may also need to communicate the changes in shipping rates to their customers. This can be done through email newsletters, social media posts, or updates on the business’s website. Clear communication can help manage customer expectations and prevent any negative impact on the business’s reputation.

The Importance of Understanding Dimensional Weight Pricing in 2019

One key factor that can impact your final FedEx shipping rates is the dimensional weight of your package. This refers to how much space the package takes up during shipping, rather than its actual weight. Understanding dimensional weight pricing and how it impacts your shipping costs is important for accurately calculating the final shipping rates.

How to Choose the Right FedEx Shipping Service Based on Your Needs

Not all shipping services are created equal, and choosing the right FedEx service for your specific needs can help you save money and ensure speedy, reliable delivery. From FedEx Ground to FedEx Express, consider the available options and choose the service that best aligns with your business requirements.

A Look at How Competing Carriers’ Rates Compare to FedEx’s New Rates

Finally, it’s important to consider how competing carriers’ rates compare to the new FedEx shipping rates. Conducting a comprehensive analysis of the different options can help you make an informed decision about which carrier to use for your business’s shipping needs.

Conclusion

As you can see, the 2019 FedEx shipping rates are a complex topic that requires careful consideration for any business that relies on regular shipping. With this detailed breakdown, you should be able to understand the factors impacting your final shipping rates and make an informed decision about how best to move forward.