Why is FedEx Freight So Expensive?
Why is FedEx freight so expensive? This is a valid and fair question because it costs quite a lot of money to send products from one place to another and one thing also is these costs add up, particularly when you run a business that is based on delivery to get your products to people.
If you would compare FedEx’s service before and now, you would see a lot of differences, the cost is slowly going up.
FedEx sometime around 2021 announced that it will add a fuel surcharge to many delivery orders and also raise shipping charges starting
Why would FedEx increase prices now, especially since they already charge more than their competitors?
And why will people go with them if they cost more?
Why is FedEx Freight So Expensive?
Below are some reasons why FedEx freights are expensive:
1. Fuel Surcharge Increase
Gas is very expensive, and the price increases and decreases based on present market prices, availability, and international agreements.
Regardless of your political leanings, gas prices have indisputably gone up over the last couple of years.
In September of 2021 for instance, the standard cost of gas in the US was $3.175 for each gallon.
But in January 2019, gas costs went down to $2.245. We all consider the side effect of high gas prices when we go to fill up at the local gas station.
2. Best Record On Overnight Delivery
A lot of people want their packages delivered to them immediately and on time. FedEx can do that for you very fast and they are reliable
Not only does FedEx pay keen attention to getting packages to the customer as quickly as possible, but they also provide a broad number of options to allow for the best communication between FedEx and the customer.
FedEx provides three different overnight domestic shipping options, to ensure that you get the package at the time you need it:
- FedEx First Overnight: next morning
- FedEx Priority Overnight: next day by midday
- FedEx Standard Overnight: next day
3. Market Instability
FedEx characterized the present economy as “a challenging operating environment” when telling why they felt the need to raise prices.
It seems there may be statistics to hold the idea that we’ve been living in a voracious economy recently, in part because of the pandemic.
When the pandemic hit the world in 2020, it basically put the economy at a standstill.
People and businesses looked for ways to minimize exposure to the virus by increasing safety procedures and maintaining social distancing.
Social distance often meant people working from home and requesting contact-free delivery for essentials instead of going to the store.
Shipping demand increased greatly as people stayed home more.
While FedEx did experience a boost in business, sudden demands to increase safety created substantial unexpected expenses.
4. International Shipping Difficulties
Every day, we come across international travel with the package that we buy.
Though it is okay to buy from America and another faraway country, we also need international trade to start relationships with other countries and add to both economies.
Still, it is hard to move things and packages from one country to the other country, and in some countries, it is even harder.
A lot of processes is involved, like customs and other security procedure.
It is true that using FedEx may be expensive, but the reason for this is justifiable.
For instance, When you are shipping your item internationally, the two most known option is for you to transport it by sea or by plane.
According to Time Magazine, the amount is about $10,000 to transport a 40-foot steel container from Shanghai, China, to Rotterdam, Netherlands, by boat.
So you see, If that’s high, then it is because it is. In fact, it’s 547% higher than the five-year average for the season.
