For the third consecutive year, FedEx has announced a 5.9% average General Rate Increase (GRI). While the figure may seem familiar from years past, its real impact is much more complex, and understanding the nuances has become essential for protecting your bottom line.
It’s crucial to note that the 5.9% headline is only an average. Some services will rise less, others more, and many will exceed this percentage by a significant margin. Depending on your shipping profile—specifically, the services used, package dimensions, and destination zones—your actual increase could be significantly higher.
And that’s before factoring in the less-visible changes, such as targeted increases to surcharges, minimum charges, and dimensional weight rules, plus new fees and mid-cycle adjustments that can amplify costs.
As you finalize budgets for the year ahead, it’s no longer enough to track the headline rate. A proactive, granular analysis of the full GRI impact is essential to navigating rising costs and staying competitive.
Key Highlights:
| Surcharge | Average Increase % |
|---|---|
| Announced GRI | 5.9% |
| FedEx Residential Surcharge, Express | 6.1% |
| FedEx Residential Surcharge, Ground | 8.4% |
| FedEx Additional Handling | 5.6% |
| FedEx Oversize | 8.5% |
Base Rate Increases
At its core, the GRI isn’t just about revenue; it’s a strategic tool that shapes the behavior of shippers. Much like a sales incentive plan, GRIs are designed to reward or discourage specific shipping choices. Carriers structure these increases to subtly guide customers toward preferred behaviors.
| Base + Rate Average Increase | |||||
|---|---|---|---|---|---|
| FedEx Ground & FedEx Home Delivery | 1-5 LBS | 6-10 LBS | 11-20 LBS | 21+ LBS | |
| Zone 2 | 5.8% | 5.8% | 6.3% | 5.9% | |
| Zone 5 | 5.5% | 5.5% | 6.5% | 5.9% | |
| Zone 7 | 5.9% | 5.9% | 6.7% | 6.2% | |
| Zone 8 | 5.9% | 5.9% | 6.7% | 6.1% | |
| FedEx Express Saver | Zone 2 | 3.9% | 3.9% | 3.9% | 3.9% |
| Zone 5 | 3.9% | 3.9% | 3.9% | 3.8% | |
| Zone 7 | 4.5% | 4.5% | 4.5% | 3.6% | |
| Zone 8 | 3.9% | 3.9% | 3.5% | 3.6% | |
| FedEx 2 Day | Zone 2 | 4.9% | 4.9% | 4.9% | 4.4% |
| Zone 5 | 6.6% | 6.6% | 6.6% | 6.6% | |
| Zone 7 | 4.9% | 4.9% | 4.9% | 4.9% | |
| Zone 8 | 4.9% | 4.9% | 4.9% | 4.9% | |
| FedEx 2 Day AM | Zone 2 | 5.2% | 5.2% | 5.2% | 5.1% |
| Zone 5 | 6.6% | 6.6% | 6.6% | 6.6% | |
| Zone 7 | 4.9% | 4.9% | 4.9% | 4.9% | |
| Zone 8 | 4.9% | 4.9% | 4.9% | 4.9% | |
| FedEx Priority Overnight | Zone 2 | 6.9% | 6.9% | 6.9% | 6.7% |
| Zone 5 | 6.5% | 6.5% | 6.5% | 6.5% | |
| Zone 7 | 4.5% | 4.5% | 4.5% | 4.5% | |
| Zone 8 | 4.5% | 4.5% | 4.5% | 4.5% | |
| FedEx Standard Overnight | Zone 2 | 5.9% | 5.9% | 4.9% | 4.8% |
| Zone 5 | 4.5% | 4.5% | 4.5% | 4.5% | |
| Zone 7 | 4.5% | 4.5% | 4.5% | 4.5% | |
| Zone 8 | 4.5% | 4.5% | 4.5% | 4.5% | |
In 2026, FedEx’s pricing power is most apparent in the longer-haul Zones 7 and 8, where shippers are experiencing above-average rate increases. Limited competition on cross-country lanes and higher operational costs for fuel and labor allow FedEx to exert greater control in these routes. By contrast, lower zones are seeing more modest hikes and targeted adjustments to minimum charges, likely designed to stay competitive with regional carriers. For shippers with a national footprint, the impact will exceed the 5.9% average GRI.
Weight-based pricing is also a factor in FedEx’s 2026 GRI, with particular emphasis on the 11- to 20-pound range. This segment is where regional final-mile carriers such as OSM, DHL, and USPS are less competitive, and the adjustments suggest FedEx is aligning its increases to capture stronger yield potential in a weight class with fewer pricing pressures.
For businesses operating from a single fulfillment center, these changes highlight the growing value of network decentralization. Distributing inventory across multiple locations can reduce reliance on long-haul zones, unlock regional carrier options, and mitigate the financial impact of base rate increases.
Minimum Charges
In 2026, FedEx Ground will raise its minimum charge from $11.32 to $11.99, which is the lowest rate a shipment can be billed, regardless of negotiated discounts. This change will impact shippers of lightweight, low-cost goods, as more of their packages will default to the minimum charge. Even if a shipper’s discounted rate falls below $11.99, the minimum still applies, reducing the value of negotiated discounts and potentially increasing overall shipping costs.
| FedEx Minimum Fees | 2025 Rate | 2026 Rate | 2025 - 2026 Increase |
|---|---|---|---|
| Priority Overnight | $42.31 | $45.22 | 6.9% |
| Standard Overnight | $38.55 | $40.82 | 5.9% |
| 2 Day | $25.23 | $26.46 | 4.9% |
| Express Saver | $22.95 | $23.84 | 3.9% |
| Ground / Home Delivery | $11.32 | $11.99 | 5.9% |
Net Transportation Cost: The Three Key Drivers
Beyond fees and fuel, a shipper’s net transportation cost is primarily shaped by three factors: discounts, dimensional weight (DIM), and minimum charges (MIN). Shifts in any of these areas directly affect the total cost.
For example, a 50% discount on a $15 Ground rate might appear to reduce the charge to $7.50. However, with current Ground minimums set at $11.32, the minimum charge applies unless a lower threshold has been negotiated. In practice, this brings the effective discount closer to 25% rather than the full 50%.
This illustrates why minimum reductions carry significant weight: the lower the minimum, the more of the negotiated discount is realized. Adjusting discounts alone, without factoring in the impacts of dimensional weights and minimums, can often override contracted discounts and increase net costs.
Recognizing how these three components interact is essential for accurate cost modeling and planning.
Accessorials
The most significant impacts of FedEx’s 2026 General Rate Increase (GRI) are found in the details, particularly within accessorial fees. These charges are not included in the published 5.9% average increase, yet they play a central role in determining a shipper’s total transportation spend.
FedEx’s pricing structure continues to favor lightweight, small-cube packages, which are easier to handle, more profitable, and less likely to incur additional fees. For shippers managing bulkier or more complex shipments, however, the larger cost increases often result from accessorial surcharges rather than changes to the base rate.
Zone-Based Additional Handling & Oversize Surcharge
| FedEx Surcharge | 2024 Rate | 2025 Rate | 2025 Mid-Cycle Rate | 2025 Mid-Cycle Increase | 2026 Rate | 2025 - 2026 Increase |
|---|---|---|---|---|---|---|
| Additional Handling (Weight) | ||||||
| Zone 2 | $34.50 | $43.50 | $43.50 | - | $46 | 5.7% |
| Zone 3-4 | $37.50 | $47.50 | $47.50 | - | $50.25 | 5.8% |
| Zone 5-6 | $40 | $50.50 | 4.5% | $56.25 | 6.6% | |
| Zone 7+ | $43.50 | $55 | $55 | - | $58.75 | 6.8% |
| Additional Handling (Dimension) | ||||||
| Zone 2 | $22 | $28 | $28 | - | $29.50 | 5.4% |
| Zone 3-4 | $24.50 | $31 | $31 | - | $32.75 | 5.6% |
| Zone 5-6 | $27 | $34 | $36 | 5.9% | $38.50 | 6.9% |
| Zone 7+ | $30 | $38 | $38 | - | $40.75 | 7.2% |
| Additional Handling (Packaging) | ||||||
| Zone 2 | $19.50 | $25 | $25 | - | $26.50 | 6.0% |
| Zone 3-4 | $23 | $29 | $29 | - | $30.75 | 6.0% |
| Zone 5-6 | $24 | $31 | $31 | 1.6% | $33 | 6.5% |
| Zone 7+ | $25 | $31.50 | $31.50 | - | $33.75 | 7.1% |
| Oversize (Express/Ground) | ||||||
| Zone 2 | $160 | $205 | $240 | 17.1% | $255 | 6.3% |
| Zone 3-4 | $175 | $225 | $260 | 15.6% | $275 | 5.8% |
| Zone 5-6 | $190 | $240 | $297.50 | 24% | $320 | 7.6% |
| Zone 7+ | $205 | $260 | $305 | 17.3% | $330 | 8.2% |
| Oversize (Home Delivery) | ||||||
| Zone 2 | $190 | $240 | $240 | - | $255 | 6.3% |
| Zone 3-4 | $205 | $260 | $260 | - | $275 | 5.8% |
| Zone 5-6 | $230 | $290 | $297.50 | 2.6% | $320 | 7.6% |
| Zone 7+ | $240 | $305 | $305 | - | $330 | 8.2% |
Mid-Cycle Rate Increases
FedEx’s revenue stability in 2025 has been supported by a series of mid-cycle rate adjustments. Year-to-date, there have been 13 increases affecting fuel surcharges, cubic-based pricing, and other targeted fees. These incremental changes help carriers sustain revenue performance even as shipping volumes decline.
For logistics teams, this means the GRI isn’t a once-a-year event anymore—it’s a rolling strategy. Staying ahead requires ongoing auditing and a clear understanding of how accessorials evolve throughout the year.
FedEx Residential Delivery Surcharge
| FedEx Residential Delivery Fees | 2024 Rate | 2025 Rate | 2026 Rate | 2025 - 2026 Increase |
|---|---|---|---|---|
| FedEx Ground | $5.55 | $5.95 | $6.45 | 8.4% |
| FedEx Express | $6.15 | $6.55 | $6.95 | 6.1% |
FedEx Delivery Area Surcharge
| FedEx Delivery Area Fees | 2025 Rate | 2026 Rate | 2025 - 2026 Increase |
|---|---|---|---|
| Delivery Area Surcharge, Residential | $6.20 | $6.60 | 6.5% |
| Delivery Area Surcharge, Extended Residential | $8.30 | $8.80 | 6% |
| Delivery Area Surcharge, Commercial | $4.20 | $4.45 | 6% |
| Delivery Area Surcharge, Extended US Express Residential | $8.30 | $8.80 | 6% |
| Delivery Area Surcharge, Ground | $4.20 | $4.45 | 6% |
| Delivery Area Surcharge, Extended Ground | $5.25 | $5.55 | 5.7% |
| Delivery Area Surcharge, Remote Commercial, Remote | $15.50 | $16.75 | 8.1% |
Additional Considerations
Added Fuel Surcharges
In recent years, FedEx has made adjustments to how fuel surcharges are applied across its service offerings. Traditionally, these surcharges were limited to transportation-related accessorial fees such as Delivery Area Surcharge (DAS), Residential Delivery (RES), and Oversize Package fees. However, in recent years, the scope has broadened to include additional service charges like Address Correction and Additional Handling.
This expansion reflects a shift in how fuel costs are integrated into the overall pricing structure. While the rationale is to account for fluctuating fuel expenses across more operational touchpoints, it’s important for shippers to be aware of the cumulative impact. Because fuel surcharges are layered on top of other accessorial fees, they can contribute to a higher total shipping cost than anticipated.
Required Signature Increase
FedEx has announced updates to its Signature Required service fees, with the most notable change being a 15.6% increase for Adult Signature Required. This particular service ensures that packages are received by individuals age 21 or older, verified through a government-issued ID.
| FedEx Required Signature Fees | 2025 Rate | 2026 Rate | 2025 - 2026 Increase |
|---|---|---|---|
| Adult Signature Required | $8.65 | $10 | 15.6% |
| Direct Signature Required | $7.15 | $7.60 | 6.3% |
| Indirect Signature Required | $7.15 | $7.60 | 6.3% |
The fee adjustment reflects the added operational effort involved in secure, high-touch deliveries, especially relevant in eCommerce transactions involving age-restricted items. As online shopping continues to grow, services like Adult Signature Required play a key role in ensuring compliance and accountability at the point of delivery.
New Cube-Based AHS and OS Criteria
Starting January 12, 2026, FedEx will introduce revised cubic volume and weight thresholds that determine when shipments are subject to Additional Handling Surcharge (AHS) and Oversize (OS) fees. These updates are part of FedEx’s ongoing efforts to align surcharges with package characteristics that require special handling or exceed standard dimensions.
As of now, the exact threshold values have not been released. This makes it challenging for shippers to assess how the changes might affect their packaging strategies or shipping costs.
Building Your 2026 Shipping Strategy
Step #1: Understand How the General Rate Increase Impacts You
FedEx’s 2026 General Rate Increase (GRI) averages 5.9%, but that figure is just a baseline. It represents an average across base transportation rates, not the full picture of how costs will shift for individual shippers. Relying solely on the 5.9% figure for budgeting will lead to inaccurate forecasts. To plan effectively, businesses need to analyze how the rate changes interact with their unique shipping profiles.
A smart starting point is to compare your current landed cost—the total expense to produce, ship, and deliver a product—to your cost structure after the 2026 GRI. This will help identify where increases are most likely to occur.
Key metrics to evaluate include:
- Average zone
- Average price/pack
- Total accessorial charges
- Shipping charges by service type
- Spend trends
- Carrier agreement terms and discounts
Accessorial charges, in particular, can drive up costs quickly. For example, shipping a 1 lb. Ground package with FedEx in 2026 may include:
- A residential surcharge (up 8.4%)
- A dimensional weight charge (which may exceed the actual weight charge)
- A delivery area surcharge (up 6.5%)
Carriers closely monitor these metrics and use them to inform pricing strategies. Understanding how your shipping behavior aligns with carrier priorities can help you make adjustments that reduce costs and improve efficiency.
For businesses short on time or resources, SiftedAI can help model these changes and provide actionable insights tailored to your shipping data.
Step #2: Develop a Plan to Reduce Cost Impact
As carriers continue to refine their pricing models, shippers can take proactive steps to manage costs and maintain efficiency.
Collaborate with Your Carrier
Rather than viewing your carrier as a competitor, consider them a strategic partner. Engage with your carrier representative to explore ways to streamline operations. By aligning your shipping practices with their efficiency goals, you may uncover opportunities for mutual benefit, such as improved service levels or more favorable pricing.
Use the insights from Step #1 to pinpoint where GRI will have the greatest impact on your business. Then leverage that data in discussions to negotiate terms that better reflect your shipping volume and patterns.
Review Your Agreement Closely
Carrier agreements often contain clauses that can influence your overall spend. Look for:
- Minimum spend requirements that may offset negotiated discounts
- Surcharges tied to package dimensions, delivery zones, or service types
- Terms that may be renegotiated based on updated shipping behavior
Understanding these details can help you avoid unexpected fees and ensure your discounts deliver real value.
Explore Internal Adjustments
To further mitigate rising costs, consider operational changes such as:
- Passing incremental shipping costs to customers where appropriate
- Offering slower, more economical shipping options
- Diversifying your carrier mix by including regional providers
- Optimizing packaging to reduce dimensional weight charges
- Implementing zone skipping or enhancing in-region fulfillment strategies
Each of these tactics can help offset surcharges and improve cost efficiency without compromising customer experience.
Step 3: Leverage SiftedAI for Smarter Shipping Decisions
Navigating the impact of GRIs requires more than just reactive budgeting; it calls for a data-driven strategy. Success comes not only from understanding the changes but also from having the right tools and trusted partners to respond effectively.
With SiftedAI, shippers gain access to a powerful suite of solutions that deliver clarity, precision, and actionable insights—enabling you to stay ahead of market shifts with confidence.
Visualize the Impact
SiftedAI’s dedicated GRI Dashboard allows you to see exactly how rate increases affect your shipping profile. By analyzing your historical data and current patterns, you can identify where costs are rising and why.
Model Strategic Scenarios
With Sifted’s decision support tools, you can run advanced simulations to uncover opportunities for cost savings and operational improvements. These insights can help you determine when to:
- Eliminate unnecessary spend by flagging avoidable charges and inefficiencies
- Open new distribution centers to optimize origin points and reduce zone-based surcharges
- Diversify your carrier mix by incorporating regional or LTL carriers, or exploring alternatives like USPS Ground Advantage and Amazon Shipping
- Re-evaluate packaging strategies to minimize dimensional weight and oversize fees
Stay Ahead of the Curve
GRIs can introduce unexpected cost pressures, but with the right tools, you can stay ahead of the competition.
SiftedAI empowers you to make informed decisions, reduce spend, and adapt your logistics strategy with precision.
