Over a month ago, FedEx released their 2024 General Rate Increase, and in October, UPS announced their 2024 General Rate Increase (GRI). UPS followed FedEx with a 5.9% increase over base rates, but based on analysis by our team of parcel experts, here’s what you need to know.
- 5.9%? More like 6.2%-6.3%. While the ground minimum has increased by 5.9%, deeper analysis of the rates in aggregate reveals that UPS’s GRI appears much higher. For context, in 2014, the minimum charge was $6.24. In just 10 years the minimum has increased 71%.
Below you can see based on service level the increase compared to prior years, with Worldwide Express – Export having the highest rate increase.
- Watch out for International Fees. Effective January 15, 2024, the International Additional Handling and International Oversize surcharges will be on a “per package” basis instead of a “per shipment” basis. This means that on a single shipment with multiple packages, each package will be subject to that fee. International Additional Handling for UPS is $31.00, while FedEx has three different versions ranging from $21.50 to $36.00.
- Accessorials are adding up, and several are higher than FedEx.
- Missing Package Level Detail (PLD) Fee is increasing by 28.3%. The missing PLD fee is increasing from $3.00 to $3.85, a 28.3% increase. Remember, FedEx does not charge this fee; only UPS.
- 25% increase on the Shipping Charge Correction Audit Fee. The shipping charge correction audit fee is increasing from $1.00 to $1.25, a 25% increase. FedEx does not charge this fee either.
Have a question about how the 2024 GRI might impact your business? Contact us and our Parcel Optimization team can help you navigate and potentially mitigate some of the impact.