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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 ClientServices@UTSnet.com if you would like to learn more about these services.