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Rate & Surcharge Adjustments

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UPS

Effective December 27, 2021, the 2022 UPS Tariff/Terms and Conditions of Service and 2022 UPS Rate and Service Guides are available to view and download from UPS.

UPS Tariff/Terms and Conditions of Service

UPS Rate and Service Guides

(Source: UPS.com)

Effective January 3, 2022, the Fuel Surcharge for U.S. Ground and Air services will change. Details here:

Read More About the Rate Change

The Air Fuel Surcharge will continue to be based on the National Average U.S. Gulf Coast Jet Fuel Price and the Ground Fuel Surcharge will continue to be based on the National U.S. Average On-Highway Diesel Fuel Price. Both are adjusted weekly.

Changes to the Fuel Surcharge for U.S. Ground and Air services will also be reflected on UPS’s Fuel Surcharge page beginning December 30, 2021.

View the Fuel Surcharge Page

(Source: UPS.com)

Effective December 26, 2021, rates for all UPS SurePost services will increase.

To view the rates, UPS requests customers visit the UPS SurePost rates webpage provided in your UPS SurePost service agreement.

(Source: UPS.com)

Effective December 26, 2021, UPS is increasing its Retail Rates and rates for UPS Simple Rate shipments. Details here:

2022 Preview Retail Rates
2022 Preview Alaska and Hawaii Retail Rates
2022 Preview Daily UPS Simple Rate Shipments

(Source: UPS.com)

Update: Shipware has provided an overview of the GRI announcement: UPS 2022 General Rate Increase: 6 Key Takeaways

Effective December 26, 2021, the published rates for UPS’s services will increase. UPS acknowledges that the impact of these changes will vary according to your shipping characteristics and the terms of your UPS agreement.

Package

The following changes will take effect December 26, 2021:

The rates for UPS® Ground, UPS Air and International services will increase an average net 5.9%.


Preview 2022 UPS Daily Package Rates
Preview 2022 UPS Alaska and Hawaii Daily Package Rates
Preview 2022 UPS Hundredweight Service Package Rates

The rates for certain Value-Added services and Other Charges will increase:

Preview 2021 Changes to Package Value-Added Services and Other Charges

The following changes will take effect January 9, 2022:

  • The Peak Surcharges will be renamed Peak/Demand Surcharges.
  • The list of Zip Codes to which Area Surcharges apply will change.

Preview 2022 Changes to Area Surcharge Zip Code Listing
Preview 2022 Area Surcharge Zip Code Listing
Preview 2022 Extended Area Surcharge Zip Code Listing

The list of zip codes to which the Remote Area Surcharge applies will not include certain zip codes in the 48 contiguous states.

Preview 2022 New Remote Area Surcharge US48 Zip Code Listing

Air Freight

Effective December 26, 2021, the rates for UPS Air Freight within and between the U.S., Canada and Puerto Rico will increase an average net 5.2%.

Preview 2022 UPS Air Freight Rates
Preview 2022 UPS Air Freight Accessorial Rate Changes
Preview 2022 U.S. origin UPS Express Freight® Premium Direct Rates

(Source: UPS.com)

Effective October 17, 2021 until further notice, the amount of the Peak Surcharges applied to U.S. shipments will change. All other previously announced Peak Surcharges will remain unchanged. 

Review a detailed listing of the applicable Peak Surcharges.

The latest information on Peak Surcharges remains available at ups.com/peaksurcharge.

(Source: UPS.com)

Effective August 16, 2021, the Fuel Surcharge table for U.S. UPS Ground services will change.  UPS has provided details here.

The UPS Ground Fuel Surcharge will continue to be based on based on the National U.S. Average on Highway Diesel Fuel Price and adjusted weekly.

Changes to U.S. UPS Ground Fuel Surcharge tables will also be reflected on UPS’s Fuel Surcharge webpage beginning August 12, 2021.

(Source: UPS.com)

Effective March 21, 2022 the Fuel Surcharge for International Air-Export and International Air-Import services will change.  In addition, all fuel surcharges from March 21, 2022 until further notice will be based on either the National U.S. Average On Highway Diesel Fuel Price or the U.S. Gulf Coast (USGC) price for kerosene-type jet fuel as most recently reported by the U.S. Energy Information Administration (EIA), rounded to the nearest cent.

More details can be found here: UPS Fuel Surcharges.

Changes to the Fuel Surcharge for International Air-Export and International Air-Import services will also be reflected on UPS’s Fuel Surcharge page beginning March 17, 2022.

UPS’s Fuel Surcharge Page

(Source: UPS.com)

Effective April 11, 2022, UPS is increasing the Fuel Surcharge for U.S. Domestic Ground and Air services. This is a 1.75% increase independent of the weekly FSC adjustments that shippers are accustomed to.

Details on these changes can be found here.

UPS’s Air Fuel Surcharge will continue to be based on the National Average U.S. Gulf Coast Jet Fuel Price and adjusted weekly and the Ground Fuel Surcharge will continue to be based on the National U.S. Average On-Highway Diesel Fuel Price and adjusted weekly.

Changes to the Fuel Surcharge for U.S. Ground and Air services will be reflected on UPS’s Fuel Surcharge page beginning April 7, 2021.

UPS’s Fuel Surcharge Page

(Source: UPS.com)

Beginning April 11, 2022, UPS is adjusting rates for UPS Worldwide Economy.

UPS has instructed customers with a Worldwide Economy service agreement to visit the UPS Worldwide Economy rates webpage provided in their agreement to view the new rates.

(Source: UPS.com)

 

 

Effective May 22, 2022 until further notice, US to Canada rates and Mexico rates will increase.

Announcement and further details can be found here: UPS Peak Surcharges

Surcharge tables can be found here: UPS Peak/Demand Surcharges – May 22, 2022 Update

(Source: UPS.com)

UPS is decreasing peak surcharge rates on Worldwide Express Freight services to the U.S. originating from China Mainland, Hong Kong SAR, Macau SAR, Australia, New Zealand, and other Asia origins.

Effective August 14, 2022, peak demand surcharges for Worldwide Express Freight and Worldwide Express Freight Midday will decrease:

  • $0.34 per lb. for applied to shipments from China Mainland, Hong Kong SAR or Macau SAR to the U.S ($2.04 to $1.70)
  • $0.68 per lb. for applied to shipments from Australia, New Zealand, or other Asia origins to the U.S ($1.34 to $0.66)

Details here: UPS Peak Demand Surcharges

(Source: UPS.com)

UPS has announced their peak surcharge increases for the holiday season.

Effective October 2, 2022 to January 14, 2023, surcharges for large packages will increase:

  • Additional Handling – $6.50 per package (up from $3.50)
  • Large Package Surcharge – $70.00 per package (up from $40.00)
  • Over Maximum Limited – $400.00 per package (up from “no charge”)

Effective October 30, 2022 until January 14, 2023, increased surcharges will apply to Air Residential, Ground Residential, and SurePost packages for any customers whose combined volume of Ground Residential, SurePost, Next Day Air Residential and All Other Air Residential packages has exceeded 20,000 packages in any week after October 2021.

For customers for whom the peak surcharge applies, the surcharge will be assessed on all Air Residential, Ground Residential, and SurePost packages over 105% of the “baseline weekly average volume for each service level.”

The “baseline” volume is the customer’s average weekly volume for each service level for June 2022. HOWEVER, if the customer’s average weekly volume during September 2022 was less than 80% of that of June 2022, then UPS, at its discretion, can use the lower weekly average volume from September to determine the baseline.

Actual surcharge amounts will vary based on the percentage of weekly peak volume by service over baseline volume (105% of baseline to 400%+ of baseline).

  • ​​​SurePost & Ground Residential – $1.25 per package to $6.00 per package
  • Air Residential – $2.25 per package to $7.00 per package

View the full peak surcharge table and details here: UPS Peak/Demand Surcharges

Effective September 5, 2022, UPS is also adjusting the Export Air Fuel Surcharge and Import Air Fuel Surcharge tables with an increase of 1.0 percentage points.

Services affected include: UPS 3 Day Select® from Canada, UPS Worldwide Express Plus®, UPS Worldwide Express NA1®, UPS Worldwide Express®, UPS Worldwide Express Freight® Midday, UPS Worldwide Express Freight®, UPS Worldwide Saver®, UPS Worldwide Expedited®, and UPS Express Critical®.

Details can be found here: UPS Fuel Surcharges

(Source: Shipping Costs & Rates | UPS – United States)

UPS has just announced a 6.9% average rate increase, effective December 27.

As always with the UPS’s and FedEx’s General Rate Increases, and as noted by the asterisk in UPS’s announcement, “The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.”

Details here: Shipping Costs & Rates | UPS

The following changes were also noted:

In addition to the rate increase, UPS also announced:

  • The late payment fee would increase from 6% to 8%
  • Peak/Demand Surcharges will be referred to as “Demand Surcharges (note: the original announcement said “renamed,” but was updated to “referred to”)
  • Zip codes aligned to certain zones will change
  • Scheduled Pickups Options will no longer vary by weekly billing total

UPS Air Freight within and between the U.S., Canada and Puerto Rico will increase an average net 6.2%, also effective December 27.

As per usual with regards to rate and surcharge increases, UPS and FedEx announce matching 6.9% standard rate increases.

(Source: Shipping Costs & Rates | UPS – United States)

UPS is increasing the International Air-Export and International Air-Import Fuel Surcharge tables by 1.5 percentage points, effective December 5, 2022.

Details here: UPS Fuel Surcharges

This increase comes just three months after the last 1.0 percentage point increase to the Export Air Fuel Surcharge and Import Air Fuel Surcharge tables on September 5, 2022.

The services affected are:
UPS 3 Day Select® from Canada
UPS Worldwide Express Plus®
UPS Worldwide Express NA1®
UPS Worldwide Express®
UPS Worldwide Express Freight® Midday
UPS Worldwide Express Freight®
UPS Worldwide Saver®,
UPS Worldwide Expedited®
UPS Express Critical®

(Source: Shipping Costs & Rates | UPS – United States)

UPS has announced a 6.9% average increase to SurePost rates to match their 6.9% average general rate increase. The increased rates go into effect December 27, 2022.

In addition, some new and adjusted fees will apply to SurePost packages that meet certain criteria, effective March 26, 2023:

Non-Standard Cube Charge

  • Applies to any package with L x W x H measuring more than 2 cubic feet (3456 cubic inches)

Non-Standard Length Charge

  • Applies to any package with its longest side measuring more than 22 inches but not exceeding 27 inches.

Non-Standard Extra Length Charge

  • Applies to any package with its longest side measuring more than 30 inches.

As a result, adjustments have been made to the existing non-machinable charge.

Non-Machinable Charge (An additional charge per package applies when:)

  • One dimension measures more than 27 inches but does not exceed 30 inches.
  • Two dimensions each measure more than 17 inches and do not exceed 30 inches.
  • Package weighs over 35 lb.

Note: these charges will not be assessed if an Additional Handling or Large Package Surcharge is applied.

(Source: Shipping Costs & Rates | UPS – United States)

UPS announced it is decreasing Demand Surcharges for UPS Worldwide services applied to shipments from China Mainland, Hong Kong SAR, or Macau SAR to the United States that are paid for in the U.S.

Effective December 25, 2022:

  • UPS Worldwide Express Plus®: Decreasing $0.14/lb. to $1.22/lb.
  • UPS Worldwide Express®: Decreasing $0.14/lb. to $1.22/lb.
  • UPS Worldwide Saver®: Decreasing $0.14/lb. to $1.22/lb.
  • UPS Worldwide Expedited®: Decreasing $0.14/lb. to $1.22/lb.
  • UPS Worldwide Express Freight®: Decreasing $0.16/lb. to $1.54/lb.
  • UPS Worldwide Express Freight® Midday: $0.16/lb. to $1.54/lb.

This is the second announced decrease, since August, to Worldwide Express Freight services from China Mainland, Hong Kong SAR, and Macau SAR to the U.S. On Aug 5, UPS announced a $0.34 decrease in those Worldwide Express Freight® and Worldwide Express Freight® Midday Demand Surcharges.

(Source: UPS Peak/Demand Surcharges)

UPS has announced that it’s extending its peak season surcharges beyond peak season, indefinitely, with new rates effective Jan 15, 2023.

Like FedEx, UPS is keeping its peak Additional Handling and Large Package surcharges in place at a reduced rate:

  • Additional Handling: $3.50 per package
  • Large Package Surcharge: $40.00 per package

However, unlike FedEx, UPS is also extending its peak season surcharges on SurePost, Ground Residential, and Air Residential shipments.

UPS has also cut the number of baseline volume tiers in half, meaning more shippers will fall into the highest surcharge tier.

  • SurePost: $0.40 to $0.60 per package
  • Ground Residential: $0.40 to $0.60 per package
  • Next Day Air Residential: $0.40 to $0.60 per package
  • All Other Air Residential: $0.40 to $0.60 per package

UPS has removed the “peak” language from these surcharges in their announcement, adjusting the name from “Peak/Demand Surcharge” to “Demand Surcharge.” (From UPS: “The term Demand Surcharge includes Peak/Demand Surcharge and Peak Surcharge, and all of these terms may be used interchangeably.”)

Note that the same volume thresholds that applied to shippers during peak season, still apply for this peak/demand surcharge extension.

Visit UPS Demand Surcharges for details, and to learn if these surcharge extensions will impact your business.

Lastly, the Over Maximum Limits surcharge will not extend beyond Jan 14, 2023.

(Source: UPS.com)

“Effective March 27, 2023, the International Ground Export Import Fuel Surcharge will apply to Ground shipments between Mexico and the U.S.”

(Source: UPS.com)

UPS is increasing the International Air Import Fuel Surcharge table by 1.0 percentage point, effective April 17, 2023.

Details here: UPS Fuel Surcharges

This increase comes just four months after the last 1.5 percentage point increase to the Export Air Fuel Surcharge and Import Air Fuel Surcharge tables on December 5, 2022 and seven months after the previous 1.0 percentage point increase on September 5, 2022.

The services affected are:

UPS 3 Day Select® from Canada
UPS Worldwide Express Plus®
UPS Worldwide Express NA1®
UPS Worldwide Express®
UPS Worldwide Express Freight® Midday
UPS Worldwide Express Freight®
UPS Worldwide Saver®
UPS Worldwide Expedited®
UPS Express Critical®

(Source: Shipping Costs & Rates | UPS – United States)

UPS’s demand surcharge application for the peak season is largely similar to last year’s (baseline calculations and peaking factors), with increases to the base demand surcharges from 2022.

Effective Oct 1, 2023 – Jan 13, 2024:

  • Demand — Additional Handling Surcharge will increase to $6.90 per package (+$0.40 from 2022)
  • Demand — Large Package Surcharge will increase to $74.90 per package (+$4.90 from 2022)
  • Demand — Over Max Limits Surcharge will increase to $410 per package (+$10 from 2022)

UPS is also implementing a Demand Surcharge on UPS Air Residential, UPS Ground Residential and UPS SurePost Packages from October 29, 2023 to January 13, 2024 for customers whose combined volume of Ground Residential, SurePost, Next Day Air Residential and all other Air Residential packages exceed 20,000 packages in any week after October 2022 (the past year).

The Demand Surcharge ranges:

  • UPS SurePost – $1.35 to $6.40 (+$0.10 to +$0.40 from 2022)
  • UPS Ground Residential – $1.35 to $6.40 (+$0.10 to +$0.40 from 2022)
  • UPS Next Day Air Residential – $2.40 to $7.50 (+$0.15 to +$0.50 from 2022)
  • All Other Air Residential – $2.40 to $7.50 (+$0.15 to +$0.50 from 2022)

Surcharge details and peaking charts can be found here: https://www.ups.com/assets/resources/webcontent/en_US/PeakDemandSurcharges_US.pdf

UPS has just announced a 5.9% annual average rate increase for 2024, matching FedEx, alongside their holiday season demand surcharge increases.

Effective December 26, 2023 (one week earlier than FedEx), UPS Ground, UPS Air and International services will increase an average net 5.9%.

UPS states that rate previews will be available at a later time.

(Source: Shipping Costs & Rates | UPS – United States)

Effective December 26, 2023, SurePost rates will increase an average of 4.9%.

Details: UPS SurePost Rates

In addition, Small Business rates, and Retail rates for UPS Ground, UPS Air and International services will increase.

Details:

If your organization uses Small Business Rates, UPS suggests visiting the UPS Small Business Rates webpage provided in your agreement to see your new rates.

(Source: Shipping Costs & Rates | UPS – United States)

UPS is increasing the Ground Domestic Fuel Surcharge and UPS SurePost Fuel Surcharge tables by 0.5%, effective December 4, 2023.

Services affected are:

  • UPS Ground®
  • UPS® Ground with Freight Pricing
  • UPS Hundredweight Ground Service
  • UPS SurePost®
  • UPS® Basic

In addition, the International Ground Export Import Fuel Surcharge table will also increase 0.5% on December 4, 2024 and apply to UPS® Standard to/from Canada and UPS® Standard to/from Mexico.

The Fuel Surcharge (FSC) not only applies to your rates, but other surcharges as well:

  • Peak/Demand Surcharges (which are still in effect)
  • Delivery Charges
  • Pickup Charges
  • Remote/Extended Delivery and Pickup Charges
  • Residential Surcharge
  • Return Services w/ Pickup
  • Saturday Delivery and Pickup
  • Signature Required Services
  • Additional Handling
  • Large Package
  • Over Maximum Limits
  • Oversize Pallet Handling

Note that these table increases differ from the weekly FSC adjustments based on the National U.S. Average On-Highway Diesel Fuel Price in that they are increases to those weekly adjustments.

(Source: Shipping Costs & Rates | UPS – United States)

UPS, just two weeks after increasing their ground and SurePost fuel surcharge matrix by 0.5%, will increase it yet again by another 0.75%, effective Monday, December 18.

The additional increase comes a week after FedEx raised their ground fuel surcharge table by 1.0% on December 11, exceeding UPS’s. These leapfrogging increases come as average on-highway diesel fuel prices are dropping week-over-week.

In addition, UPS is also increasing their domestic Express fuel surcharge by 1.0%, effective December 18, matching FedEx’s 1.0% increase on December 11.

As is the case with on-highway diesel fuel prices, the U.S. Gulf Coast spot price for kerosene-type jet fuel, which express service fuel surcharges are based on, is not increasing but decreasing.

According to the EIA’s site, spot prices have dropped from 2.908 on 11/3 to 2.330 on 12/8.

Details: https://www.ups.com/assets/resources/webcontent/en_US/Fuel_Surcharge_US.pdf

(Source: Shipping Costs & Rates | UPS – United States)

Mirroring last January’s extension when UPS rebranded Peak/Demand Surcharges to Demand Surcharges, UPS is extending AHS and Large Package surcharges effective January 14 until further notice.

  • Additional Handling: $3.50 per package
  • Large Package Surcharge: $40.00 per package

Unlike last January, however, UPS has not announced an extension to demand surcharges on SurePost, Ground Residential, and Air Residential shipments.

(Source: UPS Demand Surcharges)

Effective February 5, 2024, UPS is increasing the International Ground Export Import Fuel Surcharge table 100 bps.

i.e. If the National U.S. Average On-highway Diesel Fuel Price (USD/Gallon) is between $3.86 and $3.98, the fuel surcharge will be 16.75%, up from 15.75%.

Details at: Fuel Surcharge | UPS – United States

(Source: Shipping Costs & Rates | UPS – United States)

Effective April 29, 2024, the UPS Ground Domestic, UPS SurePost, and UPS Air Domestic fuel surcharge tables will increase 0.5% (50 bps).

For example, the current Ground Domestic FSC, 15.75%, would be 16.25% on April 29.

This marks the third increase to the domestic and SurePost FSCs from UPS since December:

  • December 4 – 0.5%
  • December 18 – 0.75%
  • April 29 – 0.5%

 

Services affected are:

  • UPS Ground
  • UPS Ground with Freight Pricing
  • UPS Hundredweight Ground Service
  • UPS SurePost
  • UPS Basic
  • UPS Next Day Air Early
  • UPS Next Day Air
  • UPS Next Day Air Saver
  • UPS 2nd Day Air A.M.
  • UPS 2nd Day Air
  • UPS 3 Day Select
  • UPS Hundredweight Air

 

Details at: Fuel Surcharge | UPS – United States

(Source: Shipping Costs & Rates | UPS – United States)

FedEx

FedEx is adjusting the Peak Surcharge implemented on July 5, 2021, and revised on Sept. 27, 2021.

The number of ZIP codes listed below for FedEx Freight will be reduced effective Jan. 17, 2022.

FedEx Freight Peak Surcharge ZIP codes

(Source: FedEx.com)

FedEx is adjusting the surcharge on all FedEx Express® and TNT international parcel and freight shipments that went into effect April 6, 2020.

This surcharge does not apply to domestic shipments.

(Source: FedEx.com)

Update: Express and TNT International services have been updated again. See November 19, 2021 Update for new surcharge rates.

FedEx is adjusting the surcharge on all FedEx Express® and TNT international parcel and freight shipments that went into effect April 6, 2020.

This surcharge does not apply to domestic shipments.

For rate change details, click here.

(Source: FedEx.com)

Update: Shipware has provided an overview of the GRI announcement: 

Effective Nov. 1, 2021

A fuel surcharge increase will be applied to FedEx Express (domestic package and freight services), FedEx Ground, and FedEx Freight shipments beginning November 1, 2021.

Updated information about all changes can be found here.

Effective Jan. 3, 2022

FedEx Express, FedEx Ground, FedEx Ground® Economy, and FedEx Freight rates will increase.

There will be changes to shipping surcharges and fees that may apply to your shipment and affect your total shipping rate.

Beginning January 3, 2022, FedEx will offer customers who ship internationally an additional option for time-definite deliveries in one to three business days. 

See the Jan. 3, 2022, FedEx® Standard List Rates PDF for rate information.

Effective January, 2022

The following FedEx Express, FedEx Ground, FedEx Ground Economy and FedEx Freight surcharge changes will take place:

  • Effective Jan. 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge that applies when a pickup is performed and no shipment is tendered to the carrier.
  • Effective Jan. 17, 2022, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.
  • Effective Jan. 17, 2022, a Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.
  • Effective Jan. 24, 2022, the Additional Handling Surcharge and Oversize Charge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone.

Details on these changes can be found here.

(Source: FedEx.com)

FedEx is adjusting the surcharge on all FedEx Express® and TNT international parcel and freight shipments that went into effect April 6, 2020. Peak Surcharge amounts for some FedEx Express and TNT shipments will be increasing on March 7, 2022.

This surcharge does not apply to domestic shipments.

For rate change details, click here.

(Source: FedEx.com)

Effective April 4, 2022, FedEx will update its Fuel Surcharge Tables for FedEx Express, FedEx Ground, and FedEx Freight.

This is a 1.75% increase independent of the weekly FSC adjustments that shippers are accustomed to.

Updated amounts can be found here.

(Source: FedEx.com)

FedEx is increasing One Rate base rates, effective May 2, 2022.

Details here: FedEx One Rate Page

Beginning June 6, 2022, FedEx is also introducing a dimensional threshold to One Rate Envelopes and Paks.

One Rate Envelopes measuring more than 2 inches along their shortest side or any One Rate paks measuring more than 5 inches along their shortest side, as determined by FedEx, will be rated as a One Rate box based on the package’s overall cubic volume.

(Source: FedEx.com)

FedEx announces a Peak Surcharge increase to FedEx Express and TNT international parcel and freight shipments, effective April 11, 2022.

Beginning April 11, the Peak Surcharge amount for FedEx Express parcel and freight shipments will increase for some shipments moving between:

– APAC and various countries
– MEISA and various countries
– Europe and China

And, the Peak Surcharge amount for TNT shipments will increase for some shipments moving between:

– APAC and various countries
– MEISA and various countries

Details can be found here: Peak surcharges and fees for international services

(Source: FedEx.com)

FedEx has announced its annual, peak holiday season surcharge increases.

Effective Sep 5, 2022 – Oct 2, 2022:

  • Peak — Additional Handling Surcharge: $3.45 per package
  • Peak — Oversize Charge: $39.50 per package

Effective Oct 3, 2022 – Jan 15, 2023:

  • Peak — Additional Handling Surcharge will increase to $6.55 per package
  • Peak — Oversize Charge will increase to $68.75 per package
  • Peak — Ground Unauthorized Package Charge will increase to $385 per package

 

Peak Surcharge (Ground Economy Package Services):

  • Oct 31, 2022 – Nov 27, 2022: $1.50 per package
  • Nov 28, 2022 – Dec 11, 2022: $2.50 per package
  • Dec 12, 2022 – Jan 15, 2023: $1.50 per package

 

FedEx is also implementing a Peak Residential Delivery Charge (Express and Ground U.S. domestic residential packages excluding Ground Economy and One Rate) from Oct 31, 2022 – Jan 15, 2023, for customers shipping more than 20,000 residential and Ground Economy packages in a week. The surcharge amount will be based on a “Peaking Factor” – the percentage increase of weekly packages shipped between the “calculation week” and the average number of weekly residential and Ground Economy packages shipped June 6, 2022 – July 3, 2022.

The Ground surcharge ranges from $1.25 – $6.00 per package and the Express surcharge ranges from $2.25 to $7.00 per package.

Peaking factors and surcharge amounts are determined separately for Express and Ground.

Surcharge details and Peaking Factor charts can be found here: Peak surcharge and fees | FedEx

(Source: FedEx.com)

 

FedEx announced an average 6.9% general rate increase (GRI) for FedEx Express, FedEx Ground, and FedEx Home Delivery, effective Jan 2, 2023.

FedEx Freight will increase an average of 6.9%-7.9%.

Increases to Express and Ground surcharges and fees will also take effect Jan 2, 2023.

The Shipware team is working diligently to provide an overview and analysis of the FedEx announcement within the next week to help you better understand how the new rates will impact your spend.

For a customized analysis of the GRI’s impact on your organization’s costs, reach out to your Shipware account rep or Contact Us.

In the meantime, increase details can be found here:

(Source: FedEx.com)

Effective Jan 16, 2023, FedEx will assess an additional surcharge of $3.45 per package for Additional Handling and $39.50 per package for Oversize Charges for U.S. Express Package Services, U.S. Ground Services, and International Ground Service.

On August 5, FedEx announced their annual Peak Season Surcharges, which included two different rates for Additional Handling and Oversize.

From Sept 5 – Oct 2, Additional Handling and Oversize shipments would incur a Peak Season Surcharge of $3.45 and $39.50, respectively. Effective Oct 3 and continuing until the end of peak season on Jan 15, 2023, AHS increased to $6.55 per package while the Oversize Surcharge increased to $68.75 per package.

FedEx announced that it would keep that first-tier Peak Season Surcharge in place for Additional Handling and Oversize, indefinitely, until further notice.

(Source: Peak Surcharges and Fees | FedEx)

FedEx is adjusting the FedEx Freight Extreme Length Surcharge, effective Jan 16, 2023.

In addition to an initial increase to the surcharge on shipments with a dimension of 12 feet or greater, FedEx has created tiers to assess increased surcharges starting at 15 feet and greater.

  • $600 per shipment, with a dimension of 12′ or greater and less than 15′.
  • $800 per shipment, with a dimension of 15′ or greater and less than 18′.
  • $1,000 per shipment, with a dimension of 18′ or greater and less than 20′.
  • $1,200 per shipment, with a dimension of 20′ or greater.

Other applicable rates/surcharges will still apply.

(Source: Shipping Rate Changes | FedEx)

FedEx announced the creation of new zones for U.S. import and export international services peak surcharges for both parcel and freight.

Details here:

The announcement outlines 15 zones each for import and export and identifies 239 distinct counties, territories, and cities.

Note that the zones for import and export do have a couple of variations between them. For example, U.S. export surcharges to Canada are now segmented into two zones, Zone A for metro areas and Zone B for remote areas, while the whole of Canada is lumped into the single Zone A for import surcharges.

What does this mean for shippers?

Shippers can largely expect to pay the same surcharges on U.S. import/export as they are now.

However, the new zones will allow FedEx to make more granular adjustments to these rates in the future.

(Source: Shipping Rate Changes | FedEx)

The application of FedEx’s peak season surcharges and dynamic pricing adjustments is largely similar to last year’s (peaking factors, calculation weeks), with increases to the base demand surcharges from 2022.

Effective Oct 2, 2023 – Jan 14, 2024:

  • Demand — Additional Handling Surcharge will increase to $6.95 per package (+$0.40 from 2022)
  • Demand — Oversize Charge will increase to $73.00 per package (+$4.25 from 2022)
  • Demand — Ground Unauthorized Package Charge will increase to $410 per package (+$25 from 2022)

Demand Surcharge (Ground Economy Package Services):

  • Oct 30, 2023 – Nov 26, 2023: $1.60 per package (+$0.10 from 2022)
  • Nov 27, 2023 – Dec 10, 2023: $2.60 per package (+$0.10 from 2022)
  • Dec 11, 2023 – Jan 14, 2024: $1.60 per package (+$0.10 from 2022)

FedEx is also implementing a Demand Residential Delivery Charge (Express and Ground U.S. domestic residential packages excluding Ground Economy and One Rate) from Oct 30, 2023 – Jan 14, 2024, for customers shipping more than 20,000 residential and Ground Economy packages in a week.

The surcharge amount will be based on a “Peaking Factor” – the percentage increase of weekly packages shipped between the “calculation week” and the average number of weekly residential and Ground Economy packages shipped June 5, 2023 – July 2, 2023.

The Ground surcharge ranges from $1.35 – $6.35 per package (+$0.10 to $0.35 from 2022), and the Express surcharge ranges from $2.40 to $7.40 per package (+$0.15 to $0.40 from 2022).

Source and Surcharge details and Peaking Factor charts can be found here: Demand Surcharges | FedEx

FedEx has announced a 5.9% annual average rate increase for 2024.

Effective January 1, 2024, FedEx Express, FedEx Ground, and FedEx Home Delivery rates will increase an average of 5.9%.

FedEx Ground Economy (formerly SmartPost) will increase an amount that has yet to be specified.

FedEx Freight rates will increase by an average of 5.9% to 6.9%.

This General Rate Increase (GRI) announcement comes a few weeks ahead of FedEx’s typical (in recent years) mid-September GRI announcement. Expectations are that UPS’s rate increases will closely resemble FedEx’s, as is the trend historically. Over the past few years, UPS’s GRI announcement has followed FedEx’s, typically in late October.

FedEx will release the full rate, surcharge, and fee increase details on September 7.

Read FedEx’s announcement here: FedEx Newsroom

FedEx announces a 1.00% increase to its Ground and Express domestic fuel surcharge tables, effective this coming Monday, December 11th, 2023.

The announcement comes just a week after UPS announced, on November 29th, raising its Ground and SurePost fuel surcharge tables, a change that went into effect this past Monday, December 4th.

With this announcement, FedEx’s Ground and Express domestic fuel surcharges now exceed UPS’s.

This change means that shippers will now pay more in fuel surcharges despite lower fuel costs.

For example, on Monday, December 11, FedEx will assess a Fuel Surcharge of 16.00% based on the on-highway average price for a gallon of diesel fuel on December 4th, which was $4.092.

The previous week’s Ground surcharge of 15.00% was based on the weekly average of $4.146, meaning that on Monday, shippers will pay 1.00% more for fuel despite the weekly average dropping $0.054.

Shippers saw a similar effect when UPS’s Ground and SurePost increases went into effect. On November 27, UPS shippers were assessed a ground surcharge of 14.75%, and on December 4, shippers were assessed a 15.25% surcharge despite the the on-highway average price for a gallon of diesel fuel dropping $0.063 week-over-week ($4.209 to $4.146).

Comparing both national carriers directly, on Monday, December 11, the following surcharges will be in effect:

  • UPS Ground & SurePost: 15.00%
  • FedEx Ground: 16.00%
  • UPS Express Domestic: 15.75%
  • FedEx Express Domestic: 16.75%

As a reminder, the Fuel Surcharge is not only assessed on net package rates, but a number of other common surcharges like the residential delivery, demand, and additional handling surcharges.

Source: Shipping Rate Changes | FedEx
New Fuel Surcharge Tables: Link

FedEx has once again extended demand (formerly peak season) surcharges beyond their originally stated end date.

FedEx’s current holiday season demand surcharge for Additional Handling is $6.95 per package. Their current Oversize surcharge is $73 per package. Both fees are effective until January 14, 2024.

However, on January 15, 2024, both demand surcharges will continue “until further notice.”

Starting January 15, 2024, Additional Handling for U.S. Express Package Services, U.S. Ground Services, and International Ground Service will be $2.00 per package, and Oversize will be assessed at $20.00 per package.

Source: Demand Surcharges | FedEx

Four days after extending “demand” surcharges on Additional Handling and Oversize surcharges, FedEx has announced an increase (of nearly double) to both surcharges, effective February 5 until further notice.

  • Demand, Additional Handling Surcharge – $3.45 (up from $2.00)
  • Demand, Oversize Charge – $39.50 (up from $20.00)

To “continue providing [their] customers with the best possible service,” the carrier’s increases raise the surcharges to mirror those of last year’s extension and nearly match UPS’s demand surcharge extension that went into effect January 15.

For comparison, UPS:

  • Demand, Additional Handling: $3.50 per package
  • Demand, Large Package Surcharge: $40.00 per package

Like with the December fuel surcharge increases, we’re seeing a carrier double back on their original surcharge adjustment to increase them further within a short period of time.

Leapfrogging demand and fuel surcharge increases come at a time when both parcel demand and fuel costs are in decline.

Source: Demand Surcharges | FedEx

Effective February 12, 2024, FedEx has reinstated the money-back guarantee for U.S. and Canada imports on select services to include two specialized international services for U.S. and Canada payors only:

  • FedEx International Priority DirectDistribution®
  • FedEx International Priority DirectDistribution® Freight

Source: FedEx Service Guide – Money Back Guarantee

FedEx is increasing its Ground and Express Domestic fuel surcharge tables 1.0%, effective May 6, 2024.

This follows UPS’s recent 0.5% FSC table increases to its Ground Domestic, Air Domestic, and SurePost services.

Will we see a similar, leap-frogging fuel surcharge situation as we did this past December?

You may recall this timeline of events.

  • UPS announced a 0.5% Ground & SurePost FSC increase effective Dec 4, 2023.
  • FedEx announces a 1.0% Ground *and* Express FSC increase effective Dec 11, 2023.
  • Two weeks after increasing its FSC, UPS then announced another Ground & SurePost FSC increase of 0.75% alongside an Express FSC increase of 1.0%, effective Dec 18, 2023.

Source: Weekly Fuel Surcharge Changes | FedEx
Details: FedEx fuel surcharge tables

USPS

Update: Shipware has written an overview of the USPS rate increases: USPS 2022 Price Increase & Impact on Shippers

The proposed prices, approved by the Postal Service Governors, would raise Shipping Services product prices approximately 3.1 percent for Priority Mail service, and 3.1 percent for Priority Mail Express service.

Announcement here: U.S. Postal Service Announces New Competitive Prices and Two New Mail Products for 2022

(Source: USPS.com)

The USPS has announced its proposed peak holiday season surcharges with effective dates between Oct 2 – Jan 22, 2023.

From Gordon Glazer, USPS expert (https://lnkd.in/gAQsiTwn):

“USPS released proposed peak season surcharges that frankly seem pretty reasonable compared to what FedEx has proposed.

While there are lots of numbers to look at most shippers will be concerned with “Commercial Rates” for:

  • Priority Mail zones 1-4 up to 10 Lbs $.25
  • Priority Mail zones 5-9 up to 10 Lbs $.80
  • Parcel Select Ground zones 1-4, up to 10 Lbs. $.25
  • Parcel Select Ground zones 5-9, up to 10 Lbs. $.40
  • First Class Package Service zones 1-4 $.25
  • First Class Package Service zones 5-9 $.40

Postal consolidators will induct via Parcel Select – usually at the DDU (local P.O.) for most of their packages.

The surcharge this year is $0.25 and, if inducted at the DSCF or DNDC, will be $0.75.

No surcharge this year for PSL (under a pound), USPS Connect Local and Parcel Return service.

The proposed effective dates are Oct 2 – Jan 22, 2023.”

Details, including retail rates and unaffected products, can be found at: USPS Newsroom

(Source: about.usps.com)

 

The USPS announced a general rate increase (GRI) for shipping services to go into effect on January 22, 2023.

Here are the “Shipper Focused” Highlights:

  • New rates for USPS Competitive, aka “Shipping Services,” are proposed to go into effect on January 22, 2023. It will require the rubber stamp approval of the PRC.
  • New Returns solution: an Outbound Label creation option for $1.25.
  • Commercial Plus and Commercial rate charts are merging and will simply be called “Commercial.”
  • Splitting existing zone “L,1 & 2” to zone 1 and zone 2. In addition, Local is transitioning to “Connect Local.”
  • Priority Mail International: Canada is removing origination zones to a simplified single zone as just another country group – likely will not require additional pages of rates.
  • Non-Standard Fees (NSF): Charges for oversized packages will go up for Express services and down for Ground. Dimensional policies remain the same with the first cubic foot excluded and 166 Dim factor.
  • International rates for Priority and Express (PMI & PMEI) +6%, First Class Package International Service (FCPIS) + 6.5%.

For more details, read our analysis of the 2023 USPS General Rate Increase here: USPS 2023 Price Increase & Impact on Shippers

The USPS proposed new prices for mailing products to take effect on January 21, 2024. The average increase across all impacted products would be approximately 2% if approved.

Some of the announced adjustments:

  • Letters (1 ounce) stamped – $0.02 increase to 68 cents
  • Letters (metered 1 ounce) – $0.01 increase to 64 cents
  • Domestic postcards – $0.02 increase to 53 cents
  • International postcards & letters (1 ounce) – $0.05 increase to $1.55
  • No change to second ounce, which remains at 24 cents

According to Shipware’s USPS Specialist, Gordon Glazer, First Class Flats is an option for many lightweight mailers. Flats have been hit extra hard over the last few years, taking much larger increases than other services. Shippers are catching a break this year as rates for Retail Flats have increased only 1.6% from July and 5.5% from the USPS’s January 2023 General Rate Increase.

Also notable is that rates above 6 ounces only see a 1% increase. The USPS is readjusting rates in the heavier tiers after those took larger increases in previous GRIs.

Presorted Flat pricing is going down significantly! Automation is decreasing by 8% while non-Auto is decreasing by 5%.

Marketing Flat rates are going down an average of 4% for both Auto and Non-Auto. In this category, Flats can be up to 15.999 ounces.

Media Mail is increasing 13.3% for 1-5 Lbs., 9.9% for 6-10 Lbs., and 8% for > 11 Lbs.

Bound Printed Matter – Parcels are increasing based on workshare. Auto and CRRT Sorting to the DDU, and the increase will only be 2-4%, Sorting to NDC, and residual is increasing 11%. Non-presorted will increase by 3.2%.

Domestic Extra Services:

  • Certificate of Mailing +7.7%
  • Certified Mail +6.1%
  • COD +13%
  • Insurance 6.1%
  • Registered Mail +9.9%
  • Return Receipt +9.7%
  • Signature Confirmation +8.6%

Domestic Other Services:

  • Address Correction: FCM Manual +8%
  • Address Correction: FCM Electronic +12%
  • Address Correction: FCM Automated +17% (first two notices)
  • Address Correction: Marketing Mail +7%
  • Business Reply Mail (BRM) 6-11%
  • Parcel Airlift +8-9%

International Mail:

  • FCM Canada +7.3% Letters and +6.1% Flats
  • Group 2 +7.1% Letters, +6.0% Flats
  • Group 3-5, +4.3% Letters, +4.2% Flats
  • Group 6-9, +12.5% Letters, +7.4% Flats

International Extra Services:

  • Certificate of Mailing +1.8% – +8.1%
  • Business Reply +8%
  • Registered Mail and Return Receipt increase ranges depend on if service is used with First Class Package International Service, with the latter getting the smaller increases. +6.3% – 9.4%

DHL

DHL Express, announced a 5.9% general average shipment price increase for U.S. account holders that will take effect on January 1, 2022. Some optional services and surcharges will increase as well.   

Announcement here.

(Source: DHL.com)

DHL Express announced a 7.9% general average shipment price increase for U.S. account holders that will take effect on January 1, 2022. Some optional services and surcharges will increase as well.   

Announcement here.

(Source: DHL.com)

DHL Express announced a 5.9% general average shipment price increase for U.S. account holders that will take effect on January 1, 2024.

According to DHL, limited services and surcharges will also be adjusted.

(Source: DHL.com)

Regionals

Effective January 16, 2022, OnTrac will assess a Peak surcharge on Large Package and Additional Handling deliveries.

Peak period surcharges are in addition to our published accessorial fees.

Effective February 6, 2022 the Fuel Surcharge table for OnTrac will change. Details can be found here.

(Source: OnTrac.com)

OnTrac Ground Service rates will reflect an average increase of 5.9%. Rates and fee changes will go into effect beginning December 26, 2021. Preview the 2022 rates.

Details on upcoming changes to fees and surcharges can be found here.

(Source: OnTrac.com)

LSO announces a general rate increase, effective Jan. 2, 2022, that will average a 5.9% increase on base rates. Details can be found here.

(Source: LSO.com)

Effective February 6, 2022, the Fuel Surcharge table for OnTrac Services will change.

The updated FSC table can be found on OnTrac’s Fuel Surcharge page.

The Fuel Surcharge will continue to be based on the U.S. West Coast Average On-Highway Diesel Fuel Price and adjusted weekly.

OnTrac has also announced increased Peak Period Surcharges to take effect January 16, 2022 and continue until further notice.

Large Packages will be assessed a $40.00 surcharge and Additional Handling deliveries will be assessed a $3.50 surcharge.

(Source: OnTrac.com)

Effective April 1, 2022, OnTrac will discontinue Collect-on-Delivery (C.O.D.) services.

(Source: OnTrac.com)

Regional carrier OnTrac is increasing it’s fuel surcharge table by 1.75%, effective May 9, 2022.

The increase is on top of OnTrac’s weekly adjustments based on the U.S. West Coast Average On-Highway Diesel Fuel Price as reported by the U.S. Energy Information Administration (EIA) for the week that is two weeks prior to the adjustment.

Details: OnTrac Service Updates

More Information: OnTrac’s Fuel Surcharge Page

On the heels of UPS & FedEx, OnTrac has just announced their peak season surcharges.

Part of the newly formed, transcontinental network with LaserShip, OnTrac’s peak surcharges are nearly identical to those of UPS and FedEx (especially UPS).

Effective Oct 2, 2022 to Jan 14, 2023:

  • Large Package Surcharge: $70.00 per package
  • Additional Handling Surcharge: $6.50 per package

For comparison, FedEx’s peak oversize and additional handling surcharges are $68.75 and $6.55, respectively, and UPS’s large package and additional handling surcharges are the same as OnTrac’s at $70.00 and $6.50.

For their Residential Delivery Surcharge, like UPS and FedEx, OnTrac will determine the assessed surcharge based on peaking factors.

Effective Oct 30, 2022 to Jan 14, 2023, a surcharge will apply to all residential deliveries. Surcharge amounts will vary based on the percentage of weekly peak volume by service over baseline volume (105% of baseline to 400%+ of baseline) and range from $1.25 to $6.00.

The “baseline” volume is the customer’s average weekly volume for each service level for June 2022. HOWEVER, if the customer’s average weekly volume during September 2022 was less than 80% of that of June 2022, then OnTrac, at its discretion, can use the lower weekly average volume from September to determine the baseline.

Unlike FedEx & UPS, however, no version of a 20,000 weekly average package volume threshold was noted. The surcharge will apply to all customers.

In addition, OnTrac lists a couple of caveats for shippers that have not tendered residential packages during the baseline periods.

Full details can be found at: Ontrac Shipping – Updates

(Source: ontrac.com)

OnTrac has announced a 6.9% average increase to Ground Shipping Rates, effective January 1, 2023.

With this announcement, the regional carrier matches the 2023 general rate increases of national carriers, UPS and FedEx.

A preview of OnTrac’s 2023 rates can be found on their site, here: OnTrac 2023 Rates

(Source: OnTrac Shipping)

OnTrac has released its 2024 rates, effective January 1, 2024.

The new rate table shows a cell-by-cell average increase of about 6.2%, with zones 2-4 showing an average increase of 5.9% and zones 5-8, 6.4%.

View the 2024 rate table here: 2024 OnTrac Shipping Rates

In addition, OnTrac has announced that effective February 5, 2024, their Fuel Surcharge will adjust weekly. Currently, OnTrac’s fuel surcharge adjusts monthly.

The change from monthly to weekly brings the transcontinental carrier more in line with nationals, UPS and FedEx, and may be a way to capitalize on rising fuel prices.

(Source: Surcharges – OnTrac)

OnTrac is increasing its fuel surcharge index 1.25%, effective February 5, 2024, when OnTrac’s index-based FSC adjustments change from monthly to weekly.

The increase brings OnTrac’s fuel surcharge in line with UPS and FedEx.

Earlier this week, OnTrac posted a 0.5% fuel surcharge increase to go into effect on Feb 5, 2024, but has now raised it an additional 0.75%, aligning with the nationals.

(Source: Surcharges – OnTrac)

OnTrac will increase their Fuel Surcharge Index, effective May 27.

Following UPS’s lead, which recently increased its Ground Domestic, Air Domestic, and SurePost fuel surcharge table, OnTrac will also increase its FSC by 0.5%.

(Source: Surcharges – OnTrac)

This is OnTrac’s second Fuel Surcharge Table increase since February 5, 2024 when the carrier increased the FSC 1.25% while simultaneously changing their index-based FSC adjustments from monthly to weekly.