FedEx Ground Economy (formerly SmartPost): rates, surcharges and how it compares
The short version
- FedEx SmartPost and FedEx Ground Economy are the same service. The FedEx terms state that the two names "are deemed synonymous" and that SmartPost contracts remained valid through the rename.
- Ground Economy's fee schedule has no residential delivery charge, where FedEx Home Delivery charges $6.45 per package in 2026, and no additional handling surcharge, where Home Delivery charges $29.50 to $40.75 by zone.
- Its delivery area surcharge scale has only two contiguous-US tiers, $6.60 and $8.80, and no Remote tier. The FedEx Ground scale reaches $16.75 today and $17.75 from January 4, 2027.
- Its seasonal demand surcharge is the highest of the three economy services: $2.55 rising to $4.05, against $0.50 and $0.75 at UPS Ground Saver and $0.40 to $0.55 at USPS.
- Final delivery may be made by USPS, by FedEx, or by another delivery service. The terms do not promise any one of them.
FedEx Ground Economy is the contractual, low-weight residential service that FedEx called FedEx SmartPost until it was renamed in March 2021. It carries packages up to 70 lb and 130 inches in length plus girth, and typically delivers in two to seven business days. Its economics are governed by a fee schedule published separately from the main FedEx surcharge document, and that schedule is the reason the service is cheap: effective January 5, 2026 it carries no residential delivery charge and no additional handling surcharge at all, replacing them with a $1.15 delivery and returns surcharge and a $7.10 non-machinable fee.
That is the comparison worth understanding, and it is not the one most guides draw. But the two fee structures are not simply cheap and expensive versions of each other: they catch different packages. The non-machinable fee starts at one dimension over 27 inches, where the FedEx additional handling surcharge starts at 48 inches on the longest side, so each schedule surcharges packages the other leaves alone.
What happened to FedEx SmartPost
FedEx renamed SmartPost to FedEx Ground Economy in March 2021, and nothing about the service's place in the network changed with the name. The terms and conditions still open by stating that "FedEx Ground Economy and FedEx SmartPost are deemed synonymous for the purposes of these Terms and Conditions" and that "all customer contracts for FedEx SmartPost remain valid and active following the renaming of the service".
Both names persist in practice. Shippers still search for SmartPost rates, platforms still carry SmartPost service codes, and the FedEx service page still labels the product "formerly FedEx SmartPost". If you are reading an older contract or invoice, treat the two as one service.
Who delivers a Ground Economy package
The common shorthand is that USPS always makes the last mile. The terms do not say that. They say: "FedEx shall sort and deliver Customer's packages by tendering Customer's packages to the USPS, FedEx or other delivery service." All three are permitted, and which one handles a given package depends on the destination and the network, not on a rule a shipper can rely on.
A separate clause is often misread as settling the question. The terms also require that "customer agrees to tender all FedEx Ground Economy packages to FedEx irrespective of final destination", and exclude FedEx liability for packages "tendered directly to USPS or other delivery service". That is an obligation on the shipper not to bypass FedEx by handing packages straight to the Postal Service; it says nothing about who performs the final delivery once FedEx has them.
UPS words its equivalent service more definitely. The UPS Ground Saver terms describe "final delivery to residential addresses by either the United States Postal Service ('USPS') or UPS". For a shipper, the practical consequences at either carrier are that transit is a range rather than a commitment, signature proof of delivery is not available, and damage occurring in Postal Service hands is excluded from the carrier's liability.
FedEx Ground Economy fees and surcharges for 2026
These are the charges in the FedEx Ground Economy fees document effective January 5, 2026. It is a short list, and what is absent from it matters as much as what is on it.
| Charge | 2026 amount | What triggers it |
|---|---|---|
| Delivery and returns surcharge | $1.15 per package | Every package delivered or returned through the service |
| Delivery area surcharge | $6.60 contiguous US, $8.80 contiguous US extended, $8.80 Alaska, $8.80 Hawaii | Destination ZIP codes on the applicable list |
| Demand surcharge | $2.55, rising to $4.05 at peak | The 2026-27 season, October 26 to January 17 |
| Non-machinable fee | $7.10 per package | One dimension over 27 inches, any two dimensions each over 17 inches, weight over 35 lb, or a cylindrical tube |
| Package relabel | $1.05 per package | Packages needing an overlabel or hand key |
| Oversize | Rated at the greater of actual weight, dimensional weight or 71 lb | Over 108 inches, up to 130 inches, in length plus girth |
| Balloon | Rated at 20 lb | Under 20 lb and over 84 inches, up to 108 inches, in length plus girth |
| Third party billing | 5.0% of transportation charges, surcharges and fees | Shipments billed to an unrelated third party |
| Dimensional weight | Divisor 139 | Where dimensional weight exceeds actual weight |
| Fuel surcharge | Same index as FedEx Ground, 29.75% in the week of September 28, 2026 | Applied to the total |
There is no residential delivery charge on the list, because the service is residential by definition and the $1.15 delivery and returns surcharge stands in its place. There is no additional handling surcharge either. And there is no Remote tier in the delivery area scale: the highest contiguous-US tier is $8.80.
Where the saving comes from
Set a 2 lb residential package to an extended delivery area ZIP code side by side on the two FedEx services, using the 2026 published amounts and leaving the base transportation rate out, because that is negotiated on both. Note the residential figure: the charge is $6.45 on FedEx Ground and Home Delivery, not the $6.95 that applies to U.S. Package Services under FedEx Express. The Service Guide prints both in the same row and taking the wrong one overstates the gap.
| Listed fees, before fuel and base transportation | FedEx Home Delivery | FedEx Ground Economy | Difference |
|---|---|---|---|
| Residential delivery charge | $6.45 | None | |
| Delivery and returns surcharge | None | $1.15 | |
| Delivery area surcharge, extended | $8.80 | $8.80 | |
| Off-season total | $15.25 | $9.95 | $5.30 |
| Early and late season, with demand surcharge | $15.75 | $12.50 | $3.25 |
| Peak, with demand surcharge | $16.05 | $14.00 | $2.05 |
The listed fees are $5.30 lower on Ground Economy off-season and $2.05 lower at peak. The demand surcharge takes most of the advantage during the five peak weeks, because FedEx charges $4.05 on Ground Economy against $0.80 on Home Delivery, and our peak season surcharge calculator prices that across the sixteen-week season. The base transportation rates sit outside this table and are negotiated separately on each service, so the fee gap is a component of the answer rather than the answer.
The other structural difference is the delivery area scale. The Ground Economy schedule tops out at $8.80 in the contiguous US with no Remote tier, where the FedEx Ground residential scale charges $16.75 for a Remote-tier ZIP code, rising to $17.75 on January 4, 2027 when 2,533 ZIP codes move into that tier. We covered the change in the January 2027 delivery area surcharge article, and any ZIP code can be checked in the delivery area surcharge lookup. Which tier a ZIP code falls into under the Ground Economy schedule is set by the list that applies to that service, so confirm the tier against your own invoices rather than assuming the Ground list carries over.
Handling fees: different triggers, not two prices
Ground Economy's $7.10 non-machinable fee is often compared directly with Home Delivery's additional handling surcharge of $29.50 to $40.75. The amounts are right, and the comparison is only valid where both would apply, because the two schedules define different packages.
| Ground Economy non-machinable, $7.10 | Home Delivery additional handling, $29.50 to $40.75 by zone | |
|---|---|---|
| Longest side | Over 27 inches | Over 48 inches |
| Second-longest side | Two dimensions each over 17 inches | Over 30 inches |
| Length plus girth | Not a trigger | Over 105 inches |
| Cubic volume | Not a trigger | Over 10,368 cubic inches |
| Weight | Over 35 lb | Over 50 lb |
| Packaging | Cylindrical tube | Non-standard packaging, including anything not fully encased in corrugated board |
| Weight consequence | None from this fee | Rated at the greater of actual or dimensional weight, subject to a 40 lb minimum billable weight |
Two worked cases show why the direction is not fixed. A package measuring 28 by 14 by 10 inches at 8 lb actual weight triggers the Ground Economy non-machinable fee, because one dimension exceeds 27 inches, and triggers nothing on Home Delivery: 28 inches is inside the 48-inch limit, length plus girth is 76 inches, and cubic volume is 3,920 inches. Here Ground Economy charges $7.10 where Home Delivery charges nothing. Both services rate it at 29 lb dimensional weight at divisor 139.
A package measuring 49 by 16 by 12 inches at 20 lb reverses it. The 49-inch side exceeds the 48-inch threshold, so Home Delivery adds additional handling at $38.50 in zone 5 and rates the package at the greater of actual or dimensional weight subject to a 40 lb floor; dimensional weight is 68 lb, so the floor is not reached and 68 lb applies. Ground Economy charges the $7.10 non-machinable fee and also rates at 68 lb. Counting only these fees plus the residential or delivery and returns charge, Home Delivery is at $44.95 and Ground Economy at $8.25. At 68 lb billable, though, the package is close to the 70 lb Ground Economy ceiling, above which separate published per-pound rates apply.
The practical conclusion is to run your own dimension profile against both trigger sets rather than assume economy is the cheaper home for awkward packages. The dimensional weight calculator handles the rating side.
Ground Economy against UPS Ground Saver and USPS Ground Advantage
The three services do a similar job through different arrangements, and they differ in how much of their pricing is public.
| FedEx Ground Economy | UPS Ground Saver | USPS Ground Advantage | |
|---|---|---|---|
| Former name | FedEx SmartPost, to 2021 | UPS SurePost | Replaced First Class Package and Retail Ground in 2023 |
| Final delivery | USPS, FedEx or another delivery service | USPS or UPS | USPS |
| Transit | 2 to 7 business days | Primarily ground, residential | 2 to 5 business days |
| Weight limit | 70 lb | 70 lb | 70 lb |
| Size limit | 130 in length plus girth | 130 in length plus girth | 130 in length plus girth |
| Coverage | Full US residential | 48 contiguous states, residential, PO boxes, APO/FPO/DPO | All US addresses including PO boxes |
| Published rate tables | No. A contractual service with no rate card | Yes, UPS publishes Ground Saver list rates | Yes, retail and commercial, in USPS Notice 123 |
| Access without a contract | No | Published rates available; account terms vary | Commercial prices need only PC Postage, an IBI meter or a permit imprint |
| Dimensional weight | Divisor 139 | Divisor 139 | Divisor 139, only above 1 cubic foot |
| Size-based flat pricing | No | UPS Simple Rate, on other services | Cubic, ten tiers to 1 cubic foot |
| Seasonal charge | $2.55 to $4.05 | $0.50 to $0.75 | $0.40 to $0.55 for 0 to 3 lb, one flat window |
| Signature proof of delivery | Not available | Not available | Available as an extra service, $4.15 electronic on commercial |
The distinction that matters is between a published table and the rate a business actually pays. USPS publishes commercial prices available without negotiation, and UPS publishes Ground Saver list rates, while FedEx publishes no Ground Economy rate card at all. In every case a shipper with volume is likely to be on negotiated or account pricing that differs from the published table, so the comparison has to be run on the rates available to you. For reference, USPS Ground Advantage commercial at 1 lb is $7.61 to zone 1 and $7.68 to zone 2, rising to $10.67 in zones 8 and 9, under the price list effective July 12, 2026, and those prices include a temporary 8% transportation increase scheduled to expire on January 17, 2027.
USPS also has a pricing structure the economy services do not: cubic, for packages of 1 cubic foot or less that weigh 20 lb or less with no dimension over 22 inches, in ten tiers, where weight does not affect the price within a tier. For small dense items that is frequently the cheapest option available, and it is the profile most likely to be mispriced on a weight-based scale.
Minimum charges, minimum billable weights and volume commitments
These three terms get used interchangeably and are not the same thing. Keeping them apart is what separates a real comparison from a quoted rate.
- A minimum charge is a floor on the net transportation charge for a package. It is why a deep percentage discount on a light package can produce no saving: the discounted rate falls below the floor, the floor is billed, and the incentive is invisible. Our minimum charge calculator finds the weight below which a given discount stops producing anything.
- A minimum billable weight is a floor on the weight used to rate the package. Ground Economy has two: a package over 108 inches up to 130 inches in length plus girth is rated at the greater of actual weight, dimensional weight or 71 lb, and a package under 20 lb measuring over 84 inches up to 108 inches is rated at 20 lb. FedEx additional handling carries a third, a 40 lb minimum billable weight on dimension-triggered packages. None is a fee; each raises the weight the rate table is read at.
- A volume commitment is a contractual undertaking to tender a quantity of packages, usually with the incentive schedule conditional on meeting it. Ground Economy requires a contract, and economy agreements commonly carry tier or volume conditions, so moving volume off the service can reduce the discount on what remains.
Dimensional weight interacts with all three. Ground Economy uses divisor 139 and rounds every fraction of an inch up to the next whole inch, so a box measuring 12.1 by 10.2 by 6.3 inches is rated as 13 by 11 by 7, which is 1,001 cubic inches and 8 lb dimensional. An actual weight of 3 lb stops being relevant at that point.
Which service to compare for each package
Use this to decide what to price, not what to choose. The trigger thresholds are structural and hold regardless of your discount, but every row still turns on total cost, and negotiated transportation rates can outweigh any of these fee differences.
| Package profile | Worth comparing | Why |
|---|---|---|
| Under 1 cubic foot, under 20 lb, no dimension over 22 inches | USPS cubic against both economy services | Cubic ignores weight within the tier; the economy services rate on weight |
| 1 to 10 lb, residential, nonurgent | All three | The contested band, where the negotiated rate decides it |
| Longest side 28 to 48 inches | Home Delivery against Ground Economy | Non-machinable applies at Ground Economy, additional handling does not apply at Home Delivery |
| Longest side over 48 inches, under 70 lb | Ground Economy against Home Delivery, and USPS | $7.10 against $29.50 to $40.75 plus a 40 lb minimum billable weight |
| Destination in a Remote-tier ZIP code | Ground Economy and USPS | The economy scale stops at $8.80 and USPS has no delivery area surcharge; Ground charges $16.75 |
| Shipping in the five weeks to December 26 | UPS Ground Saver and USPS | Ground Economy's demand surcharge is $4.05 against $0.75 and $0.55 |
| Needs signature proof of delivery | USPS, or a standard ground service | Not available on Ground Economy or Ground Saver; USPS offers it as a paid extra |
| Commercial delivery address | Standard ground | The economy services are residential, and commercial ground avoids the residential charge |
| Over 70 lb | Standard ground | Above 70 lb chargeable weight, separate published per-pound rates apply |
| Date-definite | Standard ground or air | Two to seven business days is a range, not a commitment |
What moving volume does to the rest of your agreement
This is the part that most often turns a saving on paper into a loss on the invoice, because parcel agreements price the whole relationship rather than each service separately. Three mechanisms connect them.
The first is the incentive tier: where discounts are set by total volume or spend on a rolling basis, moving parcels away reduces the volume the tier is measured on, and a tier drop raises the rate on everything that stays. The second is the earned or growth incentive, where part of the discount is conditional on hitting a target and missing it can remove the discount on volume already shipped. The third is the service-level minimum, where an agreement requires a share of volume on a named service; economy agreements commonly carry one.
So the question is not whether another carrier is cheaper on a set of packages, but whether it is cheaper by more than the increase on the packages that stay. Our effective rate calculator shows what a discount is worth on a single package after surcharges, which is the figure that comparison needs. For the full version, the free contract review takes twelve months of invoices and your agreement and models the tier effects.
Frequently asked questions
What is FedEx SmartPost called now?
FedEx SmartPost is now called FedEx Ground Economy. The service was renamed in March 2021 and the terms and conditions state that the two names "are deemed synonymous" and that all customer contracts for FedEx SmartPost remained valid and active after the rename. FedEx still labels the service "formerly FedEx SmartPost" on its own site, and older contracts, invoices and platform service codes may use either name.
Are FedEx SmartPost and FedEx Ground Economy the same service?
Yes, they are the same service under two names, and the FedEx terms say so explicitly. Nothing about how the service works changed with the rename: FedEx still collects, sorts and line-hauls the package and then tenders it for final delivery, the weight limit is still 70 lb, and transit is still typically two to seven business days.
Does FedEx or USPS deliver FedEx Ground Economy packages?
Either, or another carrier. The FedEx terms state that FedEx "shall sort and deliver Customer's packages by tendering Customer's packages to the USPS, FedEx or other delivery service", so no single delivery agent is promised and which one handles a package depends on the destination and the network. A separate clause requires the shipper to tender all Ground Economy packages to FedEx rather than directly to the Postal Service, and excludes FedEx liability where that is bypassed; that is an obligation on the shipper and does not determine who makes the final delivery.
How long does FedEx Ground Economy take?
Typically two to seven business days depending on the distance from origin to destination, with delivery days Monday to Sunday. That is a transit range rather than a service commitment, and the FedEx money-back guarantee does not apply to Ground Economy, so a slow delivery is not refundable. For anything with a date attached, a standard ground or air service is the correct route.
Is FedEx Ground Economy cheaper than FedEx Ground or Home Delivery?
On the listed fees, usually yes. Ground Economy carries no residential delivery charge, where Home Delivery charges $6.45 per package in 2026, and no additional handling surcharge. On a 2 lb residential package to an extended delivery area ZIP code the listed fees total $9.95 on Ground Economy against $15.25 on Home Delivery off-season, a difference of $5.30, narrowing to $2.05 during the five peak weeks because the Ground Economy demand surcharge is $4.05 against $0.80. Base transportation rates are negotiated on both services and sit outside that comparison, so the fee difference is one component of the total rather than the whole answer.
Which is cheaper: Ground Economy, Ground Saver or Ground Advantage?
It depends on the rates available to your business and on the package profile. USPS publishes commercial prices and UPS publishes Ground Saver list rates, while FedEx publishes no Ground Economy rate card, and a shipper with volume is likely on negotiated pricing at any of the three. USPS Ground Advantage commercial at 1 lb is $7.61 to zone 1 and $7.68 to zone 2 under the list effective July 12, 2026, including a temporary 8% increase scheduled to expire January 17, 2027. Two structural points hold regardless: USPS cubic is often cheapest for small dense packages under 20 lb, and during the peak weeks Ground Economy carries the highest seasonal charge of the three.
What surcharges apply to FedEx Ground Economy?
The fee document effective January 5, 2026 lists a $1.15 delivery and returns surcharge on every package, a delivery area surcharge of $6.60 or $8.80 by tier, the seasonal demand surcharge of $2.55 rising to $4.05, a $7.10 non-machinable fee, a $1.05 package relabel fee, oversize and balloon rules that raise the billable weight, a third party billing surcharge of 5.0%, dimensional weight at divisor 139, and fuel on the same index as FedEx Ground. It does not include a residential delivery charge or an additional handling surcharge.
What makes a Ground Economy package non-machinable?
Any one of four conditions: one dimension over 27 inches, any two dimensions each over 17 inches, weight over 35 lb, or packaging in a cylindrical shipping tube. The fee is $7.10 per package. These thresholds are lower than the FedEx additional handling triggers, which start at 48 inches on the longest side, 30 inches on the second-longest, 105 inches in length plus girth, 10,368 cubic inches or 50 lb, so a package can be non-machinable on Ground Economy while attracting no handling surcharge at all on Home Delivery.
How does dimensional weight affect Ground Economy pricing?
Dimensional weight is length times width times height in inches divided by 139, and where it exceeds actual weight the package may be rated on it. Two details cost shippers money. Every fraction of an inch is rounded up to the next whole inch before the calculation, so a 12.1 inch side is measured as 13. And two rules override the result upward: a package over 108 inches up to 130 inches in length plus girth is rated at the greater of actual weight, dimensional weight or 71 lb, and a package under 20 lb measuring over 84 inches up to 108 inches is rated at 20 lb.
Do I need a contract or a minimum shipping volume to use Ground Economy?
A contract, yes. FedEx states that "FedEx Ground Economy is a contractual service" and directs shippers to an account representative, and there is no published rate card. Whether a minimum volume applies depends on your agreement, and this is where three terms get confused: a minimum charge is a floor on what a package can be billed, a minimum billable weight is a floor on the weight it is rated at, and a volume commitment is an undertaking to tender a quantity of packages. Economy agreements commonly carry the third.
Could moving volume to USPS reduce my FedEx or UPS discounts?
It can, and it is a common way a projected saving becomes a loss. Parcel agreements price the whole relationship: incentive tiers are commonly set by total volume or spend on a rolling basis, earned discounts can be conditional on hitting targets, and some agreements require a share of volume on named services. Moving a third of your parcels can lower the tier that prices the rest. The test is whether the saving on the moved packages exceeds the increase on the packages that stay, which means modelling both sides against the actual agreement.
Can I dispute incorrect Ground Economy invoice charges?
Yes. The Ground Economy terms allow 180 days after the date of shipment to request an invoice adjustment for an overcharge, which is a service-specific rule: the general FedEx Service Guide runs its 180 days from the original invoice date instead. Rebilling requests are accepted up to 180 days from the invoice date on unpaid shipments. Two provisions are worth knowing: a partial payment against an invoice is not treated as a request for an adjustment, and FedEx is not obliged to refund an overcharge while the account is more than 60 days past due. Common Ground Economy errors are the non-machinable fee applied to a package inside the limits, a delivery area tier above the one the ZIP code sits in, and dimensional weight calculated on pre-rounding measurements. Our invoice auditing guide covers the checks and the other deadlines.
Sources
- FedEx, FedEx Ground Economy fees and other shipping information, effective January 5, 2026, for every Ground Economy fee amount and trigger in this article.
- FedEx, FedEx Ground Economy terms and conditions, for the SmartPost rename language, the tendering and delivery service provision, and the 180-day overcharge window from the date of shipment.
- FedEx, FedEx Service Guide 2026, for the $6.45 Ground and Home Delivery residential charge against $6.95 on U.S. Package Services, the additional handling triggers and its 40 lb minimum billable weight, and the general invoice adjustment provisions.
- FedEx, FedEx Ground Economy shipping, for transit times, weight and size limits, residential coverage and the statement that it is a contractual service, and demand surcharges for the 2026-27 season.
- USPS, Notice 123, effective July 12, 2026, for Ground Advantage commercial and cubic prices and the Signature Confirmation fee, and Domestic Mail Manual 283 for the commercial rules, cubic eligibility and dimensional weight threshold.
- UPS, Ground Saver terms and conditions and published Ground Saver rates, for the final delivery wording and service limits.