For example, zone increases for UPS 2nd Day Air and UPS 3 Day Select can be as high as 9.86% or 11.90% respectively.Larger surcharges for large packages: The large package surcharge for Zone 2 deliveries rose from $135 to $160 – and 18.5 percent increase. Larger increases for higher zones: The average increase for packages shipping to Zones 4 or below is 6.6 percent, but for packages shipping to Zones 5 or above the average increase is 8.7 percent.Larger surcharges for large packages: The large package surcharge for Zone 2 deliveries rose from $135 to $160 – and 18.5 percent increase.Hefty fees for additional handling: Charges for overweight and oversize packages or non-standard packaging rose by as much as 23 percent.Higher package minimums: The lowest price that UPS will charge to ship a package increased to more than $10 for the first time.Expect the biggest increases on larger packages, longer distances and fees and surcharges that make it difficult to keep costs down. Rates for most UPS services, including UPS Ground, UPS 3 Day Select, UPS 2nd Day Air and UPS Next Day Air Saver are increasing by more than seven percent. In fact, 6.9 percent is the average increase. If you think that the 6.9 percent increase applies across the board, you’re in for a surprise. What can shippers expect from the UPS 2023 rate increase? First, the GRI is more complicated than it appears. It’s not unusual for surcharges to comprise 30 to 40 percent of shipping costs.Ģ023 UPS shipping rate changes highlights Because carriers impose surcharges on most shipments, these costs can have a significant impact on your bottom line.
The published UPS rate increase was 6.9 percent-although some costs, notably fees and surcharges, went up even more. It marked the company’s highest increase to date, but the increase was right in line with that of its primary competitor, FedEx. The most recent UPS GRI effective date was December 27, 2022. Next, they set their profit goals and calculate rates for the coming year. Around the end of the third quarter, shipping carriers crunch their numbers, including package volumes, shipping distances and the changing costs for fuel, vehicles, equipment, labor and other operational expenses. The General Rate increase is a yearly event in the shipping industry. What is the UPS General Rate Increase (GRI)? And because shippers with heavy packages will be among the hardest hit by the increases, you will also find a helpful chart of UPS 2023 shipping rates by weight. HINT: it’s more than just shipping rates. In this article we will summarize the highlights of the UPS 2023 rate increase and explain the ways it is likely to impact your costs. Instead, you may want to visit our web page for a brief overview of what’s changed.
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UPS spells out all of the various changes in detail in the 2023 UPS Rate and Service Guide. You can download a pdf from the UPS website, but it is very detailed and more than 150 pages long. Understanding the new UPS rate increase, discovering where the biggest increases are and identifying opportunities for savings is crucial. Some will try to negotiate for discounts others will adjust their shipping strategies or add more carriers to the mix. When the rates change (almost always in an upward direction) it’s time for shippers to get strategic. Like the other major carriers, UPS announced a General Rate Increase for 2023.
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