FedEx is once again raising its shipping rates, just six months after their last rate increase. High fuel prices for both jet fuel and gas are causing both air and ground shipping costs to climb, and Americans who are already feeling a pinch at the pump will now be feeling it at the shipping counter as well.
In January, a price hike of 5.9 percent for most FedEx services was offset by a one percent decrease in the fuel surcharge. This latest increase will go into effect July 9 and will raise FedEx Freight prices by 6.9 percent. The increase will apply to shipments within and between the United States and Canada, but only to the U.S. portion of shipping between the United States and Mexico.
Small Businesses Pay the Price
Small businesses that frequently use FedEx will surely feel this increase and may wonder how to adjust their budget to accommodate the extra charges. A package that cost $25.00 to ship in June will cost about $26.73 once the rate increase takes effect in July, and while that $1.73 may not seem astronomical, for a company that makes 100 shipments a day, it adds up to an $173 increase in operating costs per day.
The best way for companies to save money shipping with FedEx is to use a credit card that offers savings on shipping, such as an American Express Business Card. Made especially for small business, American Express Business cards are part of the American Express OPEN program, which comes with many benefits for business owners, whether they run a business with 50 employees or work solo from home, shipping products around the country.
AmEx OPEN Offers Relief
Small business owners who wish to participate in the AmEx OPEN Savings program can choose from several cards, including charge cards or traditional credit cards. All American Express business cards are part of the OPEN Saving program, so customers can choose the card that`s best for their business.
The OPEN Savings program gives a five percent discount on all FedEx purchases. When you`re a member of the FedEx Advantage program, you can combine those savings with the OPEN Savings from AmEx and save even more. Here`s how it works:
If you have a FedEx account, link your American Express Business Card with OPEN Savings to your FedEx account by calling 1-800-231-8636.
Pay for all your FedEx shipments with your linked American Express card, whether paying online or at a FedEx office or store.
By linking your American Express OPEN Business Card and your FedEx Advantage program membership, you`ll save up to 16 percent on FedEx Express shipments in the United States, up to 12 percenton FedEx Ground and FedEx Home Delivery shipments, and up to 65 percent on FedEx Freight shipments.
Pick a Card, Any Card
With a full line of cards to choose from, there`s an American Express OPEN Savings Business card for every business owner. Some have annual fees, but the rewards they offer more than make up for the cost – and if you don`t want to pay an annual fee, there are no-fee options as well.
The SimplyCash Business Card, for example, offers card holders a cash back bonus that`s automatically credited to their account every month. The card has no annual fee and a zero-percent introductory APR for the first six months to a year, depending on individual credit history.
Smart Savings for Savvy Shipping
While increased shipping costs aren`t good news, it doesn`t have to mean increased cost for businesses, if they use the right credit card to pay for shipping. The OPEN Savings program is the best way to save on FedEx costs, but there`s a credit card that can save money for businesses in every budget category. All it takes is a small investment of time to find the credit card that can save businesses thousands of dollars in operating costs.