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FedEx & UPS Raise Parcel Rates AGAIN

The biggest parcel carriers, FedEx and UPS, both announced rate hikes of 4.9% for 2018. This is the eighth consecutive year FedEx and UPS have raised parcel rates 4.9% or more.

“FedEx and UPS are laser-focused on their margins and squeezing shippers with rate increases and surcharges,” wrote a pricing analytics expert at Shipware. “Although 4.9% annual increases have become the industry standard over the past few years, the actual impact on shippers is even higher because, behind the scenes, both carriers have very aggressively increased accessorial fees as well.”

The only national alternative to FedEx and UPS is the United States Postal Service, which doesn’t impose the accessorial fees that can add 20% to 30% to a shipper’s overall parcel spend. Many shippers avoid the USPS because of a perception of poor service. Yes, the USPS has a worse on-time delivery performance, but the gap is smaller than shippers think it is, when polled.

UTS has services that relieve the headaches of rising parcel costs. Our negotiation service helps you lock in lower rates with FedEx and UPS, while our audit service finds and collects the refunds you’re due.

If you would like more information, please reach out to our Client Services team at

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