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And as in years prior, it's an average 4.9% rate increase across the board. That's for the service level rates themselves. If you look at the UPS and FedEx 2020 rate increases, however, you'll see a different impact that you may not be so happy about. Most surcharges have gone up about 3 1/2 to 4%. But some of them, including the [size and weight-related](https://www.lojistic.com/blog/in-parcel-shipping-size-matters) surcharges, have gone up anywhere from 15 to 20%. This is depending on the carrier themselves. With your carrier, you want to make sure that you understand the impact of not only the rate increase itself. That rate increase could be around 4.9%. When you take into account the surcharge increases, there's a whole different impact. It could be anywhere from 10 to 15% on an increase that you weren't expecting. Double the Surcharge -------------------- There are two surcharges that both carriers are taking it to the customers with: ### 1. Delivery Area Surcharge Both carriers have added 500+ ZIP Codes, under which they're going to assess that surcharge. As for UPS, the commercial extended delivery surcharge increase alone is about 20%. You want to make sure you understand the [ZIP Codes](https://www.unitedstateszipcodes.org/). As well as the impact of that rate increase itself that applies to that surcharge. ### 2. Additional Handling These carriers are increasing [additional handling](https://www.lojistic.com/blog/why-does-shipping-and-handling-cost-so-much) weight-related surcharges to $24. Both are also reducing the threshold under which that surcharge becomes applied. It's currently 70 pounds plus. So if you have a package that's over 70 pounds, you'll get hit with the additional handling surcharge. For 2020, that threshold is dropping to 50 pounds. So if you have a package that's 50+ pounds, you'll receive an additional handling surcharge. How These UPS and FedEx 2020 Rate Increases Impact You ------------------------------------------------------ We've already done an [impact analysis](https://www.lojistic.com/freight-audit-and-payment) for some customers. We're looking at an impact of about a hundred thousand dollars to a million dollars for one of our customers. If you need any help in reviewing the actual increase, take a look at the whitepaper [on our website](https://www.lojistic.com). Or [contact us](https://www.lojistic.com/contact) and we'll further explain the impact of not only the rate increase but the surcharge as well. ![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. [« Previous Post](/blog/top-2020-parcel-trends) [Next Post »](/blog/ups-fedex-suspends-service-guarantees-amid-global-pandemic) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. 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