December 22, 2016
Each year, parcel carriers announce fairly standard changes to their pricing structures. These changes typically consist of a General Rate Increase (GRI) and adjustments to surcharges and handling fees.
This year, FedEx and UPS released changes beyond the expected adjustments. As of now, FedEx and UPS are the only major carriers to have announced these changes, but don’t be surprised if more follow.
Despite this unwelcome news, we’re here to ease your 2017 preparations. We’ve compiled a full list of the announced changes by FedEx and UPS, along with the dates they go into effect. Knowing that this information can be overwhelming and recognizing that not all businesses have the volume needed to receive hefty discounts and protect against major rate increases, we’ve also listed a few options to reduce the impact of these changes.
| Fedex | UPS | |
|---|---|---|
| Dimensional Weight Calculation Changes | Divisor will change from 166 to 139. Effective January 2, 2017 |
Divisor will change from 166 to 139 for packages greater than 1,728. Effective January 8, 2017 |
| Additional Handling Surcharge Changes | Surcharge will change from $10.50 to $11.00. Effective January 2, 2017 |
Surcharge on packages with longest side exceeding 48 inches (previously applied to packages exceeding 60 inches). This applies to all UPS Air, UPS 3 Day Select, UPS SurePost and International packages. |
| Fuel Surcharge Changes | Surcharge will be adjusted weekly vs. monthly for Express and Ground. Effective January 2, 2017 |
Surcharge will be adjusted weekly vs. monthly. Effective February 6, 2017 |
| Residential Surcharge Changes | Surcharge for Express and U. S. International Ground will increase $0.20. Effective January 2, 2017 |
Surcharge for U.S. Ground and Standard to/from Canada and Mexico will increase by $0.15. The surcharge for U.S. Air, 3 Day Select and International Air will increase by $0.35 |
Additionally, both carriers will in enact the following General Rate Increases:
FedEx: (Effective January 2, 2017)
- FedEx Express package and freight standard list rates will increase an average of 3.9% for U.S., U.S. export and U.S. import services.
- FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9%.
- FedEx SmartPost rates will increase by an average of 3.9%
- View more on FedEx rate increase.
UPS: (Effective December 26, 2016)
- UPS SurePost rates will increase by an average net of 4.9%
- UPS Ground will increase by an average net of 4.9%
- UPS Air and International services will increase by an average net of 4.9%
- View more on UPS rate increases.
Click here to see how Ingram Micro Commerce & Fulfillment can help reduce the impact of these rate increases for your business.
