FedEx 2026 GRI: Beyond the 5.9% — What Shippers Really Need to Know

FedEx has announced its 2026 GeneralRate Increase (GRI), raising average service level list rates by 5.9% effective January5, 2026. On paper, this number looks familiar—it’s the same headline increase announced in 2023 and 2024. For shippers, however, that’s just part of the story. Beyond the advertised “average”, FedEx is implementing significant surcharge hikes and a structural change to the calculation of oversize and additional handling fees. These changes will drive effective shipping costs far higher than 5.9% for many businesses—pushing real increases into the 7–12% range depending on shipment profile, service mix, and geography.

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Key Changes Beneath the Headline

1. Cubic Volume Criteria for Surcharges

For the first time, FedEx is layering cubic size rules on top of its traditional Length+ Girth measurements when determining surcharge eligibility.

• UPS in 2025: announced plans to replace Length + Girth with     cubic volume starting August 17, setting their Additional Handling Cubic     Volume threshold at greater than 8,640 cubic inches. They have since delayed the implementation until December 22 or later, creating ongoing     uncertainty about their plans. 
• FedEx in 2026: keeps Length + Girth and adds cubic size as an additional trigger, setting their threshold at greater     than 10,368 cubic inches. That gives FedEx shippers exactly 20% more leeway compared to UPS.

More packages will now qualify for Additional Handling or Oversize surcharges—especially bulky, irregular, or lightweight-but-large shipments such as sporting goods, home furnishings, ore-commerce packaging.

2. Across-the-Board Surcharge Increases

The majority of FedEx’s most common fees are climbing between 5–10%. Highlights include:

• Additional Handling: +5.4% - 7.2% per package, varying by zone. 
• Oversize Charges: +5.8% - 10.3%, varying by zone.
• Residential & Delivery Area Surcharges: +6% on average, hitting e-commerce shipments to homes hardest—Residential is +6.1% for Express and     8.4% for Ground/Home Delivery. 
• Delivery Confirmation Options: Adult Signature jumps 15.6%, a significant increase for retailers in regulated categories.

When combined, these layered surcharges can compound dramatically. A single package can incur multiple accessorials—pushing its true cost well beyond the “list rate” increase.

3. International Clearance and Brokerage Fees

Global shippers face added pressure:

• Clearance fees are rising ~4%, increasing landed cost for importers.
• The Broker Select Option—which allows shippers to designate their own customs broker—comes with clearance entry fees and accessorials that vary by shipment weight, value, and complexity. Importers should anticipate higher costs, especially for heavier or high-value goods. When combined with other international surcharges, effective increases can reach 9–11%. To stay ahead, shippers should carefully review brokerage terms and model total landed     costs as part of their 2026 budget planning.

4. Special Services and Risk-Related Fees

• Dangerous Goods & Hazmat surcharges: up 5–6%.
• Declared Value Coverage: increases by ~10%,     squeezing margins for shippers of high-value goods such as electronics,     jewelry, or medical devices.

Why This Year IsDifferent

Shippers have grown accustomed to FedEx and UPS announcing “standard” GRIs of 4.9%–6.9% annually. What makes 2026stand out

1. The cubic volume rule—a structural shift that expands surcharge exposure, rather than simply raising rates. This change also stacks on top of FedEx’s new     dimensional rounding rule, effective August 18, which rounds up every fraction of an inch for length, width, and height—further increasing the     likelihood that shipments trigger the new cubic criteria.
2. Surcharge stacking—with residential, delivery area, handling, signature fees, and a slew of other surcharge increases, effective costs     will diverge significantly from the 5.9% average.
3. ‍Parity with UPS, but harsher execution—UPS announced plans to replace Length + Girth with cubic sizing starting in August, 2025—but has since     delayed implementation. FedEx is keeping both. That makes compliance more complex and penalties more common. 

What It Means for Different Shippers

• E-commerce SMBs: Heaviest impact, with residential, signature, and delivery area surcharges all rising—expect 10–12% cost exposure.
• Manufacturers & Distributors: Bulky freight, irregular packaging, and oversize goods will be targeted by the cubic rule—likely 8–10% increases.
• Importers & Global Retailers: Brokerage and clearance hikes layered on top of international transport—9–11% increases on average.

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How Shippers Should Respond

1. Audit your shipment profile. Identify which SKUs are most vulnerable to cubic or surcharge triggers.
2. Model true cost exposure. Don’t budget for +5.9%. Run scenarios that reflect surcharges and accessorials.
3. Revisit packaging and fulfillment. Even small changes to carton size or packing density can prevent cubic thresholds from being crossed.
4. Negotiate strategically. Use carrier contract negotiations to seek relief on surcharge categories, not just headline discounts.
5. Diversify your network. Regional carriers, USPS for lightweight parcels, or hybrid fulfillment models may offset FedEx’s structural changes.

Bottom Line

FedEx’s 2026 GRI reinforces a reality that impacts every shipper: the headline percentage is just the tip ofthe iceberg. Between surcharge increases, new dimensional rules, and international fee adjustments, many businesses will see double-digit cost hikes unless they act now.

At LJM, we help shippers decode these changes, measure their exposure, and design strategies that turn parcel shipping from a cost burden into a competitive edge. With the right data, modeling, and advisory, shippers can push back against the tide of rising rates—and make 2026 a year of smarter logistics, not higher bills.