Nessco's Freight Auditing Blog

FedEx Rate Increase

Every year FedEx raises their pricing base rates for their various shipping services, which means you will be paying on average 5% more for their services in 2019 than you did in 2018. If you recently negotiated better pricing with FedEx, you might not see much of a difference, if any, in 2019 because of their annual base rate increases. It’s a catch 22!

This is why it is so important never to waive your rights to the Money Back Guarantee (“MBG”), even if they offer you better pricing discounts, because the savings from pricing discounts are significantly decreased after annual base rate increases. Instead, with MBG, Nessco can save you on average 10% off your total shipping spend, regardless of base rate increases. 

Think of it this way: if FedEx offers you 5% in saving off your pricing agreement in exchange for waiving your MBG rights, but then raises their base rates by 5%, you didn’t really save anything, in fact you will lost the 10% average savings from Nessco’s Freight Auditing services by waving your MBG rights! Instead, when base rates go up by 5%, keep your MBG rights. Then your refunds from Nessco will likewise go up! It’s a no brainer!

You can review FedEx’s annual base rate increases for 2019 here:

NEVER sign a pricing agreement without first consulting Nessco.
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Albert Mavorah

Nessco Freight Auditing 


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