FedEx Announces New March 2022 International Shipping Surcharges

FedEx Announces New March 2022 International Shipping Surcharges

international_shipping_surcharges

Figuring out the most recent surcharges for major carriers has only grown more complex since the onset of the pandemic. Every company went into a continuous peak-like mode as e-commerce expansion exploded. In February 2022, UPS announced an updated fuel surcharge, and more are sure to come. Meanwhile, global instability grows, and new surcharges become inevitable. That’s especially true as e-commerce grows through 2022 and beyond. According to eMarketer, global e-commerce retail sales will rise to $5.542 trillion this year and surpass $7.391 trillion by 2025. Such strong forecasts mean one inevitable outcome for global carriers—raising rates to stay competitive and deliver the growing volume of packages.

While all major carriers have implemented surcharges since March 2020, FedEx has now taken another step forward by implementing surcharge hikes across pre-eminent international O/D pairs. Unlike many past broad surcharges, these new surcharges have detailed specificity as to which origin and destination countries are affected. It’s impossible to paint the new international shipping surcharges with the broad strokes of the past, and shippers need to know exactly what to expect and what countries are affected. 

FedEx Express International Shipping Surcharges

The new peak surcharges for FedEx Express parcel and freight services, effective March 7, 2022, are as follows.

APAC Outbound International Shipping Surcharges

  1. Parcel exports from China to MEISA – Increasing $0.25 to $0.70 per pound or $1.50 per kilogram.
  2. Parcel and freight exports from Macau SAR, China to Europe, MEISA, some LAC countries1, and some APAC countries and territories2 – Increasing $0.25 to $0.70 per pound or $1.50 per kilogram.
  3. Parcel and freight exports from Hong Kong SAR, China to LAC countries3, and some APAC countries and territories – Increasing $0.25 to $0.70 per pound or $1.50 per kilogram.
  4. Parcel and freight exports from Japan to Europe, MEISA, LAC4 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  5. Parcel and freight exports from South Korea, Taiwan to Europe, MEISA, LAC3, and some APAC countries and territories5 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  6. Parcel and freight exports from Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam to Europe, MEISA, LAC3, and some APAC countries and territories6 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.

Still, there are additional charges that will take effect later in the month for FedEx Express international parcel and freight shipments, effective March 21, including:

  1. Parcel and freight exports from Australia to Europe, MEISA, LAC3, and some APAC countries and territories7 – Increasing $0.10  to $0.55 per pound or $1.20 per kilogram.
  2. Parcel and freight exports from New Zealand to Europe, MEISA, some LAC1 countries, and some APAC countries and territories8 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  3. Parcel and freight imports to China and additional APAC countries/territories9 from some European countries10 and several international destination payers11 – Increasing 0.10 EUR to 60 EU per pound or 1.30 EUR per kilogram.
  4. Parcel and freight imports to Mexico from some European countries10 and several international destination payers11 – Increasing 0.10 EUR to 0.60 EUR per pound or 1.30 EUR per kilogram.

Europe Outbound International Shipping Surcharges

Effective March 7, excluding origin payers in France, Hungary, Russia, Portugal, Israel (which will take effect on March 21), the following surcharges apply to outbound parcel services:

  1. Parcel exports from Europe to Canada and the U.S. – Increasing 0.05 EUR to 0.2 EUR per pound or 0.30 EUR per kilogram.
  2. Parcel and freight exports from Europe to APAC, MEISA, and LAC, and other specified countries12 – Increasing 0.05 EUR per pound to 0.2 EUR per pound or 0.30 EUR per kilogram.
  3. Parcel imports to Canada from Europe13 — Increasing 0.06 CAD per pound to 0.20 CAD per pound or 0.44 CAD per kilogram.
  4. Parcel mports to the U.S. from Europe14 –Increasing $0.05 per pound to $0.15 per pound or $0.33 per kilogram.

India Outbound Rates International Shipping Surcharges

Effective March 7, following areas will see parcel and freight exports rise $0.15 to $0.35 per pound or $0.77 per kilogram:

  1. Parcel and freight exports from India to Europe15,16 and MEISA17.
  2. Parcel and freight exports from India to some APAC countries18, 16
  3. Parcel and freight imports from India to some APAC countries17.

Peak Surcharge on TNT International Services

Shippers must also remember that TNT international services now fall under the FedEx umbrella and are experiencing increases in surcharges too. 

APAC Outbound International Shipping Surcharges

Effective March 7, the following surcharges apply:

  1. Exports from China to Europe and MEISA19 – Increasing $0.15 to $0.70 per pound or $1.50 per kilogram.
  2. Exports from Hong Kong SAR, China to Europe, LAC20, MEISA, and some APAC countries and territories21 – Increasing $0.15 to $0.70 per pound or $1.50 per kilogram.
  3. Exports from Indonesia, Japan, South Korea, Philippines, Singapore, Thailand, Taiwan, China, and Vietnam to Europe, LAC20, MEISA, and some APAC countries and territories221 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  4. Exports from Malaysia to Europe, LAC, MEISA, and some APAC countries and territories21 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  5. Exports from Australia and New Zealand to Europe, LAC20, MEISA, and some APAC countries and territories19 – Increasing $0.10 to $0.55 per pound or $1.20 per kilogram.
  6. Imports to China and some APAC countries/territories22 from some European countries23, excluding other international destination payers24– Increasing 0.10 EUR to 0.60 EUR per pound or 1.30 EUR per kilogram.

Europe Outbound International Shipping Surcharges

Effective March 7 excluding origin shipments in France, Hungary, Russia, Portugal, Israel (which will take effect on March 21), the following surcharges apply to outbound parcel services:

  1. Exports from Europe to Canada and the U.S. – Increasing 0.05 EUR to 0.2 EUR per pound or 0.30 EUR per kilogram.
  2. Exports from Europe to APAC, MEISA, and LAC – Increasing 0.05 EURto 0.2 EUR per pound or 0.30 EUR per kilogram.

India Outbound International Shipping Surcharges

Effective March 7, TNT international shipping services will assess surcharges on exports from India to APAC25, Europe26, and MEISA – Increasing $0.25 to $0.35 per pound or $0.77 per kilogram.

Increased Complexity of International Shipping Surcharges by FedEx Highlight the Need for Expert Help

Obviously, no shipper can really remember every country listed in all the fine print above for each grouping of services. However, the takeaway is still the same. If a shipper sends or receives goods between any of the countries listed throughout the above lists, prices for shipping through FedEx or TNT are increasing. As a result, it’s imperative for shippers to track the totality of their costs and understand how granular differences, like differences between origin and destination, affect total landed costs. 

Clearly, this new change represents a massive complication to knowing what to expect for surcharges from each global region, bolstering the need for a freight audit provider. Fortunately, Intelligent Audit will empower shippers to validate all these new charges providing corrections based on your contractual terms, make sense of all the data, consider all the surcharges, and help shippers realistically manage their global shipping costs with a single source of truth. Connect with Intelligent Audit to let the experts deal with the nuances of transportation cost management while you focus on your other priorities. 

1 Includes Argentina, Bolivia, Brazil, Belize, Chile, Colombia, Costa Rica, Ecuador, French Guiana, Guatemala, Guyana, Honduras, Nicaragua, Panama, Peru, Paraguay, Suriname, El Salvador, Uruguay, and Venezuela. 

2 Includes American Samoa, Cook Islands, Fiji, Micronesia, Guam, Marshall Islands, Mongolia, Saipan, New Caledonia, French Polynesia, Papua New Guinea, Palau, East Timor, Tonga, Vanuatu, Wallis and Futuna, Samoa, Northern Mariana Islands, Rota, Tahiti, and Tinian. 

3 All LAC except Mexico and Puerto Rico.

4 All LAC except Mexico, Puerto Rico, and St. Croix (U.S. Virgin Islands). 

5 Includes American Samoa, Cook Islands, Fiji, Micronesia, Marshall Islands, Saipan, New Caledonia, French Polynesia, Papua New Guinea, Palau, East Timor, Tonga, Vanuatu, Wallis and Futuna, Samoa, Northern Mariana Islands, Rota, Tahiti, and Tinian. 

6 Includes American Samoa, Cook Islands, Fiji, Micronesia, Guam, Marshall Islands, Saipan, New Caledonia, French Polynesia, Papua New Guinea, Palau, East Timor, Tonga, Vanuatu, Wallis and Futuna, Samoa, Northern Mariana Islands, Rota, Tahiti, and Tinian. 

7 Includes American Samoa, Cook Islands, Micronesia, Marshall Islands, Mongolia, French Polynesia, Palau, East Timor, Tonga, Wallis and Futuna, and Samoa. 

8 Includes Micronesia, Guam, Indonesia, Japan, Cambodia, Laos, Marshall Islands, Mongolia, Palau, and Wallis and Futuna. 

9 Additional APAC countries and territories include Australia, Indonesia, Japan, Cambodia, Laos, Malaysia, New Zealand, Philippines, Singapore, Thailand, South Korea, Timor-Leste, Vietnam, Hong Kong SAR China, Macau SAR China, and Taiwan, China

10 Includes destination payers in Austria, Belgium, Switzerland, Czech Republic, Cyprus, Germany, Denmark, Estonia, Spain, Finland, France, Greece, Hungary, Ireland, Israel, Italy, Lithuania, Luxembourg, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, Slovenia, Slovak Republic, Turkey, and the United Kingdom. 

11 The surcharge increase for destination payers in France, Hungary, Russia, Portugal, and Israel will have an effective date of March 21.

12 The following destinations may be subject to the surcharge increase: Armenia, Azerbaijan, Faroe Islands, Georgia, Greenland, Israel, Kyrgyzstan, Kazakhstan, Palestine, Turkmenistan, and Uzbekistan. 

13 The surcharge increase will apply to destination payers in Canada on shipments from Europe except for the following countries: Armenia, Azerbaijan, Georgia, Israel, Kyrgyzstan, Kazakhstan, Palestine, and Uzbekistan. 

14 The surcharge increase will apply to destination payers in the United States on shipments from the following countries: Andorra, Austria, Belgium, Bulgaria, Switzerland, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, Faroe Islands, France, United Kingdom, Gibraltar, Greenland, Greece, Hungary, Ireland, Iceland, Italy, Liechtenstein, Lithuania, Luxembourg, Latvia, Monaco, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, Slovenia, Slovak Republic, Vatican City, and South Africa.
15 All of Europe except Vatican City.

16 The surcharge increase will apply to other destinations in the same zone as Europe, Asia, Middle East, and Africa

17 The surcharge increase will apply to some destination payers in China, Hong Kong SAR, China, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Thailand, Taiwan, and Vietnam on shipments originating in India. 

18 The surcharge increase will apply to origin payers in India on shipments to the following destination countries: China, Hong Kong SAR, China, Japan, Singapore, and Thailand.

19All MEISA except Bangladesh, Bhutan, Sri Lanka, Maldives, Nepal, and Pakistan. 

20 All LAC except Mexico and Puerto Rico. 

21 Includes American Samoa, Cook Islands, Micronesia, Marshall Islands, Mongolia, New Caledonia, Nauru, French Polynesia, Palau, Solomon Islands, East Timor, Tonga, Tuvalu, Vanuatu, Wallis and Futuna, and Samoa. 

22 Additional APAC countries and territories include Australia, Indonesia, Japan, Cambodia, Laos, Malaysia, New Zealand, Philippines, Singapore, Thailand, South Korea, Timor-Leste, Vietnam, Hong Kong SAR China, Macau SAR China, and Taiwan, China.

23 Destination payers in Austria, Belgium, Switzerland, Czech Republic, Cyprus, Germany, Denmark, Estonia, Spain, Finland, France, Hungary, Ireland, Israel, Italy, Lithuania, Luxembourg, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, Slovenia, Slovak Republic, Turkey, and United Kingdom. 

24 The surcharge increase for destination payers in France, Hungary, Russia, Portugal, and Israel will have an effective date of March 21. 

25 All APAC except Australia, New Zealand, and Wallis and Futuna.

26 All Europe except Vatican City

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