On Wednesday, September 16, FedEx announced its annual general rate increase (GRI). Effective January 4, 2016, rates will be impacted as follows:
- FedEx Express will see a 4.9% average increase for US domestic, export, and import services
- FedEX Ground and Home Delivery will also see a 4.9% average increase – with SmartPost rates changing as well
- FedEx Freight shipping rates will increase 4.9% on average, too. This rate increase applies to FedEx Freight shipments within and between the US, Canada, and Mexico.
While a 4.9% increase may seem insignificant, keep in mind that this is an average increase. Most FedEx Express products saw a rate increase in excess of 4.9%.
UPS followed suit with their announcement on October 16, 2015. Effective December 28, rates would be impacted as follows:
- UPS Ground rates & accessorial charges will increase (on average) by 4.9%
- UPS Air & International services and accessorial charges, including UPS Air Freight rates within and between the US and Canada, will increase by an average of 5.2%
- UPS Freight (LTL), increased 4.9% effective October 26.
- 2.5% fee levied on all shipments billed third party (Effective Jan. 4, 2016)
These increases need to be considered by all shippers coming into the New Year. Using a rate comparison calculator or a UPS & FedEx rate calculator will help give you an idea of how the new, increased rates stack up against each other.
Using our shipping cost calculators is a great way to ensure that your rates are what they should be, or to give you some ammo to push back on your carrier rep for better carrier rates. If you’re looking for carrier rate negotiation services, we’ve got you covered there, too.