Reveel Resources

FedEx and UPS Rate Increases Are Right Around the Corner: Here’s How You Can Prepare

Fedex & UPS Rate Guide

This year, FedEx and UPS have levied unprecedented increases.  Small businesses have borne the brunt of the pandemic, and carriers seem determined to further that trend.  The last two years have signaled a massive shift to online shopping (that shows no signs of slowing), and the carriers are able to leverage their duopoly combined with the market demand to drive up shipping costs.

Among the traditional rate increases, there are often a few additional charges and changes to the carrier pricing.

Here are some highlights:

FedEx

  • Several surcharges, like additional handling and oversize packages, will begin segmenting rates by zone.
  • A new fuel surcharge went into effect on November 1, 2021.
  • 2021’s peak surcharges will be assessed at two points in the holiday season.

UPS

  • Several surcharges, like additional handling and large packages, will begin segmenting rates by zone.
  • A new surcharge called the US48 Remote Area Surcharge will apply to parcels shipped to remote areas.

GRI pricing for UPS will go into effect on December 26, 2021, while FedEx’s new pricing will launch on January 3, 2022. With these price increases right around the corner, it is imperative that you prepare your business for higher shipping costs.

Don’t Worry, We Can Help

At Reveel, we empower customers with the information they need to negotiate or renegotiate carrier contracts from a position of strength.  This year we launched the Reveel Shipping Intelligence® Platform to help you do it.

Keeping with our mission to reveel the unknown, we’ve built a platform with a series of data-fueled tools to help you navigate the shipping industry. More than clarity, we’ve given you easy to use access to insights harvested from millions of data points to ensure you get the best rate every time.

Undoubtedly, you’ve already seen that both FedEx and UPS have announced a 5.9% General Rate Increase for 2022. This is just an average and doesn’t include surcharges. Our data scientists have run an analysis across all of our clients and the real increase is much higher than 5.9%

FedEx  real average increase        12.86%

UPS     real average increase        10.25%

Obviously, this isn’t the best news, but the good news is that Reveel has just launched a GRI Impact analysis tool in our Shipping Intelligence Platform. We are offering a no obligation 14 day free trial of the Impact Analysis tool so you can see exactly what the increase will be for your unique business in order to confidently plan for 2022.

With these new increases, we highly recommend taking another look at your contracts and leveraging our Shipping Intelligence platform to see how to lower your shipping costs.

A Closer Look At These Rate Changes

UPS and FedEx are notorious for making their rate changes impossibly difficult to decipher, so we took the liberty of simplifying it for them with a comprehensive guide that breaks down these price increases from every angle. Download your free copy of our FedEx and UPS Rate Change Guide to see:

  • Data driven Impact Analysis
  • Rate increases for common surcharges
  • FedEx & UPS pricing trends over the last 10 years
  • Background on why shipping rates tend to inflate over time
  • How to forecast shipping costs with the new rates