–Be sure to email us to get the UPS and FedEx Rate Comparison Charts for 2017 vs 2018–
In the Parcel shipping game of “Follow the Leader”, UPS, as expected, has followed FedEx’ footsteps by announcing their Annual General Rate Increases which will become effective on December 24, 2017. As usual, the UPS General Rate Increase will affect all UPS Ground, UPS Air, UPS International Services, as well as all UPS Air rates within and between the US, Canada and Puerto Rico.
In UPS’ announcement the aforementioned rates will be increased “on average” 4.9%. Bear in mind, the key words here are “on average” with some rates increasing less than 4.9% but others increasing at much higher percentages than the 4.9% average.
Another critical component of UPS’ General Rate Increase becoming effective on December 24, 2017 will be the reduction in the Dimensional Weight Divisor for small packages measuring less than one cubic foot. The divisor will be reduced from the current divisor of 166 to 139. UPS will now mirror the Dimensional Weight Divisor that FedEx has previously published. This change will result in increases for these types of packages well above the 4.9% average and in many cases will result in rate increases of at least twice the 4.9% “average.”
Additional increase percentages worth noting are as follows:
Large Package Surcharges will be increasing 14.3% to $80.00 effective on December 24, 2017 and will increase again on July 8, 2018 to $90.00, which will be an additional increase of 12.5% for an overall increase of 28.6%
Minimum Charge for Ground Shipments will be increasing 3.42%. The new Minimum Charge will be $7.57
Additional Handling charge will increase 10.6% on December 24, 2018 to $12.00 and then will be increased again on July 8, 2018 to $19.00. The overall increase from the current charge of $10.85 to $19.00, the charge after the July 8, 2018 increase, will actually be 75.1%
However, the General Rate Increase Winner is the “Over Maximum Limits” Surcharge, because that charge will increase a whopping 233% from $150.00 to $500.00.
It’s time for shippers subject to the “Over Maximum Limits surcharges to realize UPS and FedEx for that matter, really do not want those products in their parcel networks and for good reason.
To assist our readers in digesting these latest UPS increases, we have created a 2017 vs. 2018 comparison chart for UPS rates and surcharges. Simply email ANuzio@icclogistics.com to request your free copy and don’t forget, we Also a reminder, we previously published a similar chart for the FedEx General Rate Increase so feel free to ask for that too so you have the increase impact for both FedEx and UPS.