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2018 FedEx & UPS Annual Rate Increase

Appraisal of FedEx & UPS Rates, Accessorials, and other Surcharges

FedEx will increase the following list rates effective on January 01, 2018.

  • FedEx Domestic Air Express & Freight Services will increase list rates an average of 4.9%.
  • FedEx Ground and Home Delivery list rate will increase an average of 4.9%.
  • FedEx International Export and Import list rate will increase an average of 4.9%.
  • FedEx One Rate list rate will increase an average of 3.5% and Smart Post is TBA.

FedEx Ground Minimum increases $0.33 a parcel to $7.58 from $7.25, a 4.6% increase.

  • The minimum net charge effects millions of parcels ensuring every parcel costs $7.58 before fuel or other fees. The Ground Minimum began at $3.03 in1998 and is now 2 ½ times the original cost.

FedEx Smart Post implements a dim and increases accessorial fees.

  • FedEx Smart Post will be subject to a 139 Dim effective January 22nd, 2018.
  • Dimensional fees will add substantial new costs to FedEx shippers, due to box sizes.
  • A Non-Machinable Surcharge increase will also become effective January 22nd, 2018

FedEx has recently added a Third-Party Invoicing Surcharge for all parcels.

  • FedEx trails UPS implementing a Third-Party Surcharge fee of 2.5%, effective January 22nd, 2018.

UPS will increase the following list rates effective on December 24, 2017.

  • UPS Domestic Air Express and Freight Services LTL will increase an average net 4.9%.
  • UPS Ground service list rates will increase an average net 4.9%
  • UPS International services will increase its list rates an average of 4.9%
  • UPS Sure Post will also increase in-line with most other services TBA.

UPS Ground Minimum increases $0.25 per package to $7.57 from $7.32, a 3.42% increase.

  • The minimum net charge effects millions of parcels ensuring every parcel costs $7.58 before fuel or other fees. The Ground Minimum began at $3.03 in 1998 and is now 2 ½ times the original cost.

UPS changed the Dim Divisor 139 and follows the lead of FedEx on services.

  • The dim divisor for US parcels (less than or equal to 1 cubic ft.) is now 139 for domestic shipments.

FedExUPS always match each other, particularly if doing so, will add new revenue and profits.

Point in case, both carriers now use a 139 Dim divisor. FedEx SmartPost is now subject to a 139 Dim just like UPS. Both carriers now apply Fuel Surcharges weekly instead of monthly. While FedEx hasn’t yet matched UPS Peak Surcharges it did implement its own Holiday Surcharges. Examples are the Additional Handling fee, an increase of $3.00 per parcel to $14.00, Ground Unauthorized Parcel from $300.00 to $415.00, and Oversize Packages increased $25.00 and is now $97.50. FedEx as a company has promised an increase in 2018 profits. Ultimately that means yield improvement through less discounting and higher pricing. The mantra is now about size, weight, girth, plus finding a mechanism to ensure every shipper pays the appropriate amount for oversize or overweight packages.

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2018 In-depth assessment of the Actual UPS Rate Increase.
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Parcel Audit Appraisal & Negotiations Group can help shippers determine the financial impact of the 2018 General Rate Increase. We are also experts at improving your Carrier Price Agreement and getting the money owed you for late deliveries, rating errors and misapplied accessorial fees. Contact us by or by phone at 978-921-0611 or email JackMitchell@PANCGroup.com.

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2018 FedEx & UPS General Rate Increase Accessorials Fees, Fuel, Dimensional Pricing, Additional Surcharges

Quick Price Facts

  • Accessorial fees and other surcharges increased, on average, at about 7% across the board
  • List Rates by product also increased roughly 5.4% across all the services.
  • Collectively Accessorial Fees, together with the List Rates, basically increased about 12.4%
  • Shippers spend 1/3 of all dollars on Accessorials Fees and receive no incentives as a result.

Accessorial Fees

2017 VS. 2018

Percentage Increase

Additional Handling US Express Ground & Int Ground

$11.00 to $12.00

Increased by 9.09%

Additional Handling above 70 lbs 7/8/2018

$70.00 to $90.00

Increased by 28.57%

Address Correction Ground & Air Express

$13.00 to $14.00

Increased by 7.69%

C.O.D. Collect on Delivery

$12.00 to $12.60

Increased by 11.99%

Dangerous Goods US Express Dry Ice

$5.00 to $5.25

Increased by 5.00%

Dangerous Goods International Dry Ice

$5.00 to $5.25

Increased by 5.00%

Dangerous Goods US Express (Accessible)

$90.00 to $93.00

Increased by 3.33%

Dangerous Goods US Express (Inaccessible)

$45.00 to $46.50

Increased by 8.13%

Declared Value per $100

$2.55 to $2.70

Increased by 5.80 %

Delivery Area Surcharge Air Commercial

$2.60 to $2.70

Increased by 3.84%

Delivery Area Surcharge Air Commercial Extended

$2.60 to $2.70

Increased by 3.84%

Delivery Area Surcharge Ground Commercial

$2.45 to $2.55

Increased by 4.08%

Delivery Area Surcharge Ground Com Extended

$2.45 to $2.55

Increased by 4.08%

Delivery Area Surcharge Air Residential

$3.90 to $4.00

Increased by 2.56%

Delivery Area Surcharge Air Residential Extended

$4.20 to $4.40

Increased by 4.76%

Delivery Area Surcharge Ground Residential

$3.90 to $4.00

Increased by 2.56%

Delivery Area Surcharge Ground Resi Extended

$4.20 to $4.40

Increased by 4.76%

Express Tag – U.S. express package services

$5.00 to $5.50

Increased by 10.00%

Ground Weekly Pick up fee – more than $75.00

$13.00 to $13.50

Increased by 3.84%

Ground Weekly Pick up fee – less than $75.00

$26.00 to $27.00

Increased by 3.84%

Hazardous Materials FedEx Ground

$32.00 to $33.00          

Increased by 3.12%

Oversize Charge

$72.50 to $80.00

Increased by 10.34%

Over Maximum Limits

$150.00 to $500.00

Increases by 233.33%

Residential Delivery Surcharge Air & Ground FedEx

$3.85 to $4.15

Increased by 7.79%

Residential Delivery Surcharge UPS Ground

$3.25 to $3.40

Increased by 4.61%

Residential Delivery Surcharge FedEx @ Home

$3.45 to $3.60

Increased by 4.34%

Signature Required Adult Signature

$5.50 to $5.75

Increased by 4.54%

Signature Required Direct

$4.50 to $4.75

Increased by 5.55%

FedEx & UPS 1998 to 2018 Increase History

UPS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
Increase Date 24.12.2017 26.12.2017 28.12.2015 29.12.2014 30.12.2014 31.12.2013 1/ 2/ 2012 03.01.2011 04.01.2010 05.01.2009 31.12.2007 01.01.2007 02.01.2006 03.01.2005 05.01.2004 06.01.2003 07.01.2002 05.02.2001 07.02.2000 08.02.1999 07.02.1998
Ground 4,90 % 4,90 % 4,90 % 4,90 % 4,90 % 5.9%* 5.9%* 5.9%* 4,9% 5,9% 5,9% 4,9% 3,9% 2,9% 1,9% 3,9% 3,5% 3,1% 3,1% 2,5% 3,6%
Domestic Air 4,90 % 4,90 % 5,20 % 4,90 % 4,90 % 6.5%* 6.9%* 6.9%* 6.9%* 6.9%* 6.9%* 6.9%* 5.5%* 2,9% 2,9% 3,2% 4,0% 3,7% 3,5% 2,5% 3,3%
Export 4,90 % 4,90 % 5,20 % 4,90 % 4,90 % 5.9%* 6.9%* 6.9%* 6.9%* 6.9%* 6.9%* 6.9%* 5.5%* 2,9% 2,9% 2,9% 3,9% 2,9% 2,9% 0,0% 0,0%
Ground CWT: 4,90 % 4,90 % 4,90 % 4,90 % 4,90 % 6.5%* 5.9%* 5.9%* 4,9% 4,9% 5,9% 5,9% 5,9% 5,9% 5,9% 5,9% 5,9% 5,4% 4,1% 3,1% n/a
Residential Ground $3,60 $3,40 $3,25 $3,10 $2,90 $2,80 $2,55 $2,45 $2,20 $2,05 $1,95 $1,85 $1,75 $1,50 $1,40 $1,15 $1,10 $1,05 $1,00 $1,00 $1,00
Residential Air $4,15 $3,85 $3,65 $3,50 $3,35 $3,20 $3,00 $2,75 $2,50 $2,40 $2,30 $2,20 $2,10 $1,75 $1,40 $1,15 $1,10 $1.05 day n/a n/a n/a
DAS Comm Air $2,75 $2,60 $2,45 $2,35 $2,25 $2,15 $2,00 $1,85 $1,70 $1,60 $1,50 $1,40 $1,30 $1,25 $1,25 n/a n/a n/a n/a n/a n/a
DAS Residential $2,75 $2,60 $2,45 $3,55 $3,40 $2,75 $2,75 $2,75 $2,50 $2,40 $2,30 $2,20 $2,10 $2,00 $1,75 $1,50 $1,50 $1,50 $1,50 applies n/a
DAS Com Extend $2,55 $2,45 $2,30 $2,20 $2,07 $2,00 $2,00 $1,85 $1,70 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
DAS Resi Extend $4,40 $4,20 $4,00 $3,80 $3,65 $3,50 $3,25 $3,00 $2,75 $2,65 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Ground Minimum $7,57 $7,32 $6,94 $6,61 $6,24 $5,84 $5,49 $5,17 $4,84 $4,57 $4,20 $4,00 $3,80 $3,62 $3,45 $3,39 $3,23 $3,11 $3,02 n/a n/a
Ground Mini %+ 4,6% 5,5% 5,00 % 5,6% 6,80 % 6,4% 6,2% 6,8% 5,9% 8,8% 5,0% 5,3% 5,0% 4,9% 4,9% 5,0% 5,0% 3,9% 3,0% n/a n/a
Dim Domestic 139 139-166 166 Cubic 166 Cubic 166 Cubic 166 Cubic 166 Cubic 166 Cubic 194 Cubic n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Dim International 139 139 139 Cubic 139 Cubic 139 Cubic 139 Cubic 139 Cubic 139 Cubic 166 Cubic n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
               
               
FedEx 2018 2017 2016 2015 2014 2013 2012 2010 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
Increase Date 02.01.2017 01.02.17 04.01.2015 1.5.15 06.01.2014 1.7.13 1/ 2/ 2012 03.01.2011 04.01.2010 05.01.2009 07.01.2008 01.01.2007 02.01.2006 03.01.2005 05.01.2004 06.01.2003 07.01.2002 01.02.2001 01.02.2000 08.02.1999 15.02.1998
Ground 4,90 % 4,90 % 4,90 % 4,90 % 4,90 % 5.9%* 5.9%* 5.9%* 4,9% 5,9% 5,9% 4,9% n/a 2,9% 1,9% 3,9% 3,5% 3,1% 3,1% 2,3% 3,7%
Domestic Air 4,90 % 3,90 % 4,90 % 4,90 % 3,90 % 5.9%* 5.9%* 5.9%* 5.9%* 6.9%* 6.9%* 5.5%* 5.5%* 4.6%* 2,5% 3,5% 3,5% 4,9% 0,0% 2,8% 3,5%
Export 4,90 % 3,90 % 4,90 % 4,90 % 3,90 % 5.9%* 5.9%* 5.9%* 5.9%* 6.9%* 6.9%* 5.5%* 5.5%* 4.6%* 2,5% 3,5% 3,5% 2,9% 0,0% 0,0% 0,0%
Ground CWT 4,90 % 3,90 % 4,90 % 4,90 % 4,90 % 5.9%* 5.9%* 5.9%* 4,9% 4,9% 5,9% 5,9% 5,9% 5,9% 5,9% 5,9% 5,9% n/a n/a n/a n/a
Residential Ground $4,15 $3,85 $3,65 $3,55 $3,40 $3,20 $3,00 $2,75 $2,50 $2,40 $2,30 $2,20 $2,10 $2,00 $1,75 $1,40 $1,35 $1,30 $1,25 n/a n/a
Residential @Home $3,60 $3,45 $3,25 $3,10 $2,90 $2,80 $2,55 $2,45 $2,20 $2,05 $1,95 $1,85 $1,75 $1,50 $1,40 $1,15 $1,10 $1,05 $1,00 n/a n/a
Residential Air $4,15 $3,90 $3,65 $3,50 $3,35 $3,20 $3,00 $2,75 $2,50 $2,40 $2,30 $2,20 $2,10 $2,00 $1,75 $1,40 $1,35 n/a n/a n/a n/a
DAS Comm Air $2,70 $2,60 $2,45 $2,35 $2,25 $2,15 $2,00 $1,85 $1,70 $1,60 $1,50 $1,40 $1,30 $1,25 $1,25 $1.75 c+r n/a $1,50 n/a n/a n/a
DAS Residential $4,40 $4,20 $4,00 $3,80 $3,65 $3,50 $3,25 $3,00 $2,50 $2,40 $2,30 $2,20 $2,10 $2,00 $1,75 $1.75 c+r $1,50 $1,50 n/a n/a n/a
DAS Ground $2,70 $2,60 $2,45 $2,35 $2,25 $2,15 $2,00 $1,85 $1,70 $1,60 $1,50 $1,40 $2,10 $2,00 $1,75 $1,50 $1.50 c+r $1.50 c+r $1.50 c+r n/a n/a
DAS Com Extend $2,70 $2,60 $2,30 $2,20 $2,07 $2,00 $2,00 $1,85 $1,70 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
DAS Resi Extend $4,40 $4,20 $4,00 $3,80 $3,65 $3,50 $3,25 $3,00 $2,75 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Ground Minimum $7,58 $7,25 $6,94 $6,61 $6,24 $5,84 $5,49 $5,17 $4,84 $4,57 $4,20 $4,00 $3,80 $3,62 $3,45 $3,39 $3,23 $3,11 $3,02 n/a n/a
Ground Mini %+ 4,6% 4,5% 5,00 % 5,6% 6,80 % 6,4% 6,2% 6,8% 5,9% 8,8% 5,0% 5,3% 5,0% 4,9% 4,9% 5,0% 5,0% 3,9% 3,0% n/a n/a
Dim Domestic 139 139-166 166 Cubic 166 Cubic 166 Cubic 166 Cubic 166 Cubic 166 Cubic 194 Cubic n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Dim International 139 139 139 Cubic 139 Cubic 139 Cubic 139 Cubic 139 Cubic 139 Cubic 166 Cubic n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

UPS 2018 Rate Increase details by Services

Click HERE to to view an excel version