FedEx, UPS Raise Parcel Rates 6.9%

Parcel carriers FedEx and UPS both announced a 2023 General Rate Increase of 6.9%. The UPS increase takes effect on December 27. The FedEx increase takes effect on January 2.

For both carriers, the 6.9% is a record high General Rate Increase. Reasons cited for the record increase include the economy's inflationary backdrop and a desire to hit financial goals despite volume declines.

FedEx and UPS are also increasing their surcharges. Most of the surcharges commonly paid by shippers are increasing by more than 6.9%. For example, oversize fees are jumping nearly 20%. Additionally, both carriers are rolling out new surcharges for 2023, such as a Remote Surcharge for shipments in rural areas where operating costs are higher.

UTS offers parcel audit and negotiation services that can help offset rate increases. Please email if you would like to learn more about these services.