2021 UPS &amp; FedEx General Price Increase | Lojistic       [    ](https://www.lojistic.com)- Why Lojistic
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2021 UPS &amp; FedEx General Price Increase
===========================================

 ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey

 ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)November 17, 2020

UPS and FedEx announced a [General Price Increase (GPI) of 4.9% for 2021](https://www.lojistic.com/white-papers), which means your shipping rates with both carriers will be more expensive come January. This increase comes after a turbulent year for shippers – and a historically profitable year for UPS and FedEx.

Get the details on the 2021 GPI with Lojistic’s [UPS &amp; FedEx General Price Increase History Whitepaper.](https://www.lojistic.com/white-papers) Our GPI History whitepaper outlines price increases over the past decade. During that time, ground tariff rates have increased 74.9% while air tariff rates have increased 75.7%! We also provide details on the surcharge and fee increases that have impacted parcel shippers the most.

The 4.9% GPI is consistent with the rate increases UPS and FedEx have implemented over the past several years; however, in 2020, UPS and FedEx rolled out several new mid-year surcharges and eliminated a shipper’s ability to file for late shipments…despite record profits.

Throughout that same time period shippers were forced to grapple with an ever-changing business environment while battling growing expenses.

When you combine all of these factors, it begs the question: how much more expensive will shipping with UPS and FedEx be?

The advertised GPI can be misleading because it’s an average and further, the 4.9% increase only applies to weight/zone rates for Air, Ground and International services. This means the actual increase will vary according to each shipper’s unique characteristics.

[![Bar chart showing Lojistic Annual Carrier General Price Increase from 2011 to 2021. Top graph displays ground commercial minimum charges rising from $5.17 in 2011 to $8.76 in 2021, with light blue bars for 2011-2016, dark blue bars for 2017-2020, and brown bars for 2021. Bottom graph shows ground residential minimum charges increasing from $7.62 in](https://www.lojistic.com/assets/public/legacy/gpi-1.png)](https://www.lojistic.com/white-papers/general-rate-increase)[download your free ups &amp; fedex general price increase history whitepaper](https://www.lojistic.com/white-papers).

Shippers also need to know that the GPI doesn’t factor in the increases to all of the accessorial surcharges, which are typically much higher than the 4.9% average.

Lojistic can help shippers like you mitigate the growing cost of doing business with UPS and FedEx. Not sure whether to push back or concede? Create a free [Lojistic account](https://app.lojistic.com/account/login?trackDemo=false) today to get the information necessary to monitor and measure the impact of the carriers’ upcoming price increase to your business.

As always, if you need support in determining how this increase will affect your business or you’d like to discuss strategies to help mitigate the 2021 GPI, [**we’re here to help**](https://www.lojistic.com/contact).

 ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) 

Author

Rich Harkey

Rich Harkey

Senior Strategy Manager

Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry.

As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.

Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.

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