How are FedEx rates determined?

Discussion in 'Trade Talk' started by Skwalk47, Jul 18, 2016.

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  1. Skwalk47

    Skwalk47 Initiate (0) Aug 31, 2010 Massachusetts

    Just wondering about their calculus. I printed 2 shipping labels today. One to Newark Delaware - 345 miles away and 18 lbs that was ~$13 and another to Egg Harbor, NJ - 333 miles away and 10 lbs (and smaller box dimensions) that was ~$16.

    Assume it has something to do with major highways and/or hubs but curious if anyone had any insight.
     
  2. evilcatfish

    evilcatfish Pooh-Bah (2,116) May 11, 2012 Missouri
    Pooh-Bah Trader

    Price, size, weight and location. I believe delivery to more rural or areas with less FedEx presence are more expensive, this could be wrong though
     
  3. TonyLema1

    TonyLema1 Pooh-Bah (2,890) Nov 19, 2008 South Carolina
    Pooh-Bah

    Are both going to residences or is one to a business address. I know UPS is cheaper to ship to a business than a residential address
     
  4. Skwalk47

    Skwalk47 Initiate (0) Aug 31, 2010 Massachusetts

    Both residential. Every variable says one should be cheaper. Must be rural/urban/interstate factor.
     
  5. FandHbrewing

    FandHbrewing Initiate (0) May 18, 2016 Colorado

    Pricing is based of Zone. Zones are different for every postal code. If you put in your postal code here...http://www.fedex.com/grd/maps/ShowMapEntry.do it will show you a map of the zones for each corresponding postal code in the US.

    http://www.fedex.com/ratetools/RateToolsMain.do?method=SetupFindZones if you have both postal codes you can use this link to find the zone as well.

    More than likely there is a little pocket of the area that is harder to get to. Since it is NJ that is not surprising that it cost more than Delaware.
     
    mythaeus likes this.
  6. FandHbrewing

    FandHbrewing Initiate (0) May 18, 2016 Colorado

    Also are you using dimensions? Your 10lb box may be dimming out to a different weight. It is LxWxH/166. If that is more then the 10lbs that is what you are actually being charged.
     
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