Following the announcement of its main competitor, FedEx, UPS announces that it will also be increasing its rates by 6.9%. The UPS rate increase will go into effect on December 27, 2022, one week earlier than its counterpart. This is their largest general rate increase (GRI) in history, following a 5.9% increase last year, and an annual 4.9% increase prior to that.
These increases come with an asterisk at the bottom stating “The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.” This likely means that you will have an increase higher than 6.9% due to surcharges.
The most common surcharges will increase more than the 6.9% GRI. With surcharges typically making up for 20-40% of a parcel shipper’s annual spend, these increases could be detrimental without understanding what will be impacted. Also:
- Scheduled Pickups Options will no longer vary by weekly billing total
- Late Payment Fee will increase from 6% to 8%
- Peak/Demand Surcharges will also be referred to as Demand Surcharges
- This indicates that peak surcharges are officially no longer temporary, and will be built into the annual prices.
- The list of ZIP codes aligned to certain zones will change.