Get Ahead of Peak Season: How to Optimize Your FedEx Contract in 2025

With peak shipping season fast approaching, now is the time for small parcel shippers to fine-tune their supply chains. That means syncing with suppliers, confirming inventory, updating forecasts—and most importantly, reviewing your shipping contracts. A strong place to start? Renegotiating your FedEx agreement.

Why FedEx Contract Negotiation Matters in 2025

Small parcel shipping continues to be a major cost center—and a major opportunity for savings. Since the pandemic, shipping rates have steadily climbed. The 2025 General Rate Increase (GRI), plus a wave of new fees and surcharges, means many businesses are overpaying without even realizing it.

Now is the time to regain control. Don’t wait until peak season hits—proactively updating your FedEx contract can deliver measurable savings when you need them most.

Steps to Secure Better FedEx Rates This Year

1. Organize and Analyze Your Shipping Data: Successful negotiation starts with knowing your numbers. Compile your shipment history—including average weights, service levels, and zones—to create a data-backed case for discounts. Understand how GRIs and new surcharges are affecting your costs. If you operate multiple locations or business units, consolidating volume can strengthen your leverage.

2. Benchmark and Audit: Compare your FedEx rates to what’s available in the broader market, including UPS, USPS, and regional carriers. Use benchmarking tools or industry data to understand your negotiating position. Don’t forget to audit invoices for billing errors or service failures—missed refunds can add up fast.

3. Build Leverage with a Multi-Carrier Strategy: Let FedEx know they’re not your only option. Exploring additional carriers increases competition and gives you bargaining power. Even just considering alternatives—like USPS, Amazon Shipping, or regional couriers—can lead to better terms from FedEx.

4. Identify Hidden Cost Drivers: Dimensional weight pricing, residential surcharges, and zone-based fees can drive up your costs without warning. Work with your carrier to pinpoint and reduce these charges. Sometimes simple changes, like packaging adjustments, can lead to major savings.

5. Negotiate Beyond Base Rates: Look beyond the base rate—target accessorial fees like address corrections, delivery area surcharges, and fuel fees. Push for customized discounts on services you use often, like Ground Economy or Express Saver.

6. Partner with STS NOW for Expert Guidance: STS NOW specializes in parcel contract negotiations and logistics optimization. Their experts help you uncover hidden fees, model potential savings, and benchmark rates to ensure you get the most competitive terms. With STS NOW in your corner, you can take back control of your shipping costs—just in time for peak season.

Take Control Before Peak Season Hits

Shipping costs aren’t going down—but smart negotiation can keep them in check. Even in a challenging 2025 shipping landscape, there are still opportunities to optimize.

You don’t have to wait for your current contract to expire. Start now, get strategic with your data, and enter peak season with a smarter, leaner FedEx agreement—with STS NOW by your side.