How To Estimate Your 2017 UPS & FedEx Rate Increase

Rich Harkey

November 07, 2016


The 2017 UPS and FedEx rate increase announcement is now behind us. But are you aware of how big the impact may be to your company’s bottom line? It can be super challenging to quantify how the rate increases will affect your business, and even more difficult to visualize those changes when drilled down into each and every service level your business utilizes.

Unfortunately, not a ton of tools are available to shippers that allow them to estimate their costs that come along with the 2017 General Price Increase (GPI). Analyzing every service level your company utilizes between both FedEx and UPS is no doubt a major chore. Freeing up resources to focus on what to do to offset the increase is no doubt the best way to allocate manpower leading up to the price increase.

We’ve developed our super-new, ultra-rad FedEx & UPS Rate Increase Calculator to help combat the difficulties associated with estimating your post-GPI costs. After doing a ton of research we came to the conclusion that there wasn’t a quality rate increase calculator available online, and estimating your costs based on your current and future carrier information could be a real pain. The FedEx & UPS Rate Increase Calculator simplifies this process and provides you with all the necessary data to visualize how the 2017 general rate increase will affect your business.

The FedEx & UPS Rate Increase Calculator is really easy to use. Just enter your shipping data in the calculator’s fields and let it take care of the rest. Be sure to note the “Advanced Service Distribution” checkbox, as it allows you to unlock and use the advanced functionalities of the calculator. With this box checked, you’re able to break down the upcoming rate increase by service level, average shipment weight, and average zone, allowing you to get a deep understanding of the impact of the rate increase. To ensure you get accurate results you’re going to need accurate inputs, so make sure you enter the most recent, accurate batch of shipping data you’ve got.

So, you’ve got your results… now what? Well, Lojistic can help you mitigate the cost of your 2017 rate increase in a variety of ways. One of the easiest ways to offset the price increase is with a parcel audit. While it isn’t going to directly affect your rates, a parcel audit will recover credits in your shipping invoices for invalid or duplicate charges. Your other option is to let Lojistic help renegotiate your UPS or FedEx contract to try and get better discounts which would offset the rate increase. While more difficult to achieve, a rate negotiation can produce tremendous savings and is for sure worth exploring.

Regardless of how you choose to mitigate the costs of the 2017 rate increase, just know that we’re here to help! Whether you want to get a parcel audit started ASAP or just want to talk for a bit, we’ve got your back. See below for links to both the UPS & FedEx rate change information.

UPS Rate Change Information

FedEx Rate Change Information

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