UPS & FedEx 2020 Summary of the General Rate Increase

UPS & FedEx 2020 Summary of the General Rate Increase

FedEx Annual Rate Increase is effective January 6th, 2020 impacting the following services.

  • FedEx US Domestic Express and Freight rates will increase an average of 4.9%.
  • FedEx US Export and Import list rates will increase an average of 4.9%.
  • FedEx Ground and FedEx Home Delivery rates will increase an average of 4.9%.
  • FedEx US Freight rates increased 5.9% and both Smart Post and Ground Multiweight will also rise.
  • FedEx Ground Minimum increased from $7.85 per shipment to $8.23, a 5% rate increase.

UPS Annual Increase Rate is effective December 29, 2019 impacting the following services.

  • UPS Ground Service list rates will increase an average net 4.9%
  • UPS Domestic Air Express rates will increase an average of 4.9%
  • UPS International services will increase its list rates an average of 4.9%
  • UPS SurePost will also increase but UPS has not indicated the increase amount.
  • UPS Ground minimum package rate increased from $7.85 to $8.23 an 4.84% increase.

Accessorial Charges are escalating faster than FedEx & UPS actual rates for different services.

Value-Added Services & Other Charges have risen to about 50% of a shipper’s costs. The 4.9% increase to rates is insignificant compared to the costs of accessorial fees which are increasing 14% or 15% every year. Truthfully, these fees are currently escalating out of control. UPS & FedEx seemed to have found a way to increase revenues that are virtually impossible for shippers to track.

UPS & FedEx Zip codes for Delivery Area Surcharge shipments are being expanded again in 2020.

You can be certain that the list of new zip codes will increase substantially driving up costs for all FedEx and UPS services. ( Please go to the Fed Ex or UPS website to find a listing of additional zip codes)

UPS & FedEx will add the Fuel Surcharge to the following accessorial fees in 2020.

Weight threshold for Additional Handling will be lowered from 70 lbs. to 50 lbs. Fuel Surcharge will now impact Additional Handling Surcharge, Delivery Signature Options, Collect on Delivery and Peak – Additional Handling Surcharge. Ground shipments Additional Handling Surcharge, Delivery Signature Options, Ground® C.O.D., Ground® Electronic C.O.D., Home Delivery® and Peak–Additional Handling

 

Example of how accessorial fees can impact a shipment cost. (10-pound Ground shipment zone)

2020 Ground Delivery 10 lbs shipment to zone 5 (without accessorial fees)

$14.49

2020 Additional Handling Dimension

$15.00

2020 Delivery Area Surcharge Extended Residential

$5.40

2020 @ Home or Residential Delivery Fee

$4.00

2019 Ground Fuel Surcharge on October 1st is an estimate of 7%.

$2.67

Total Cost of Shipment with accessorial fees

$41.56

UPS & FedEx rates increased 4.9% on average however some increased a bit higher.

Express Saver, a three-day delivery service really increased up to 7.10%.
Second Day Air service increased above the 4.9% average and is a 5.5% rate increase.

2020 FedEx Accessorials Fees, Dim, Fuel, & Additional Surcharges

  • The General Rate Increase plus accessorial fees is actually about an 18% rate increase each year.
  • More zip codes were included to DAS & Extended DAS which added fuel to other accessorial fees.
  • Carriers are finding new approaches to increase your fees that are not easily measured by shippers.
  • Most shippers are spending about 50% of their billing just for accessorial fees and other surcharges.

FedEx Accessorial Fees

2019 vs. 2020

Percentage Increase

Additional Handling Ground & International Ground Dim

$13.50 to $15.00

11.11%

Additional Handling International Express — (Dimension)

$13.50 to $15.00

11.11%

Additional US Express, Ground, & Int. Ground (Weight)

$20.00 to $24.00

20.00%

Additional US Express, Ground, & Int. Ground (Packaging)

$12.00 to $13.00

8.33%

Additional Handling Int Express (Packaging)

$12.00 to $13.00

8.33%

Address Correction US & Int. Express & Ground Freight

$16.00 to $17.00

6.25%

Minimum Charge FedEx Express Multiweight Pricing

$112.00 to $119.00

6.30%

Maximum Charge Ground Multiweight Price

$48.00 to $51.00

6.25%

Dangerous Goods Dry Ice US Express

$5.55 to $5.85

5.40%

Dangerous Goods Dry Ice International Express

$5.55 to $5.85

5.40%

Dangerous Goods Accessible

$98.00 to $105.00

7.14%

Dangerous Goods Inaccessible

$49.00 to $51.50

5.10%

Declared Value per $100.00 Express Grd. & Int. Grd.

$3.00 to $3.15

4.99%

Delivery Area Surcharges US Express Ground Resi

$4.20 to $4.40

4.76%

DAS US Express Ground Extended Residential

$4.65 to $5.40

16.13%

DAS US Express Commercial

$2.85 to $3.10

8.77%

DAS US Express Extended Commercial

$2.85 to $3.60

26.32%

DAS Ground Commercial

$2.70 to $2.95

9.26%

DAS Extended Ground Commercial

$2.70 to $3.45

27.78%

DAS Express Alaska Residential & Commercial

$27.50 to $29.00

5.45%

DAS Express Hawaii Residential & Commercial

$8.40 to $8.85

5.36%

Home Delivery Residential Delivery

$3.65 to $4.00

9.59%

Collect COD Delivery

$14.50 to $15.50

6.90%

Adult Signature Required Express Dom & Int. Ground

$6.05 to $6.35

4.96%

Direct Signature Required & No Signature Required

$5.00 to $5.25

5.00%

Express, Ground, International Adult Required

$6.05 to $6.35

4.96%

Express, Ground International Direct & Non-Direct

$5.00 to $5.25

5.00%

Ground Home Delivery

$3.15 to $3.35

6.35%

Ground Home Delivery Convenient Option Evening

$7.35 to $7.75

5.44%

Ground Home Delivery Convenient Option Appointment

$16.00 to $17.00

6.25%

Ground Weekly Pick-Up invoice spend up to $75.00

$14.50 to $15.50

6.90%

Ground Weekly Pick-Up invoice spend less than $75.00

$29.00 to $31.00

6.90%

Hazardous Materials Ground Service

$35.00 to $37.00

5.71%

Missing or Invalid Account Number

$16.00 to $17.00

6.25%

Oversize Shipment all services except Home Delivery

$90.00 to $100.00

11.11%

Oversize Shipment Home Delivery

$90.00 to $120.00

33.33%

Reroute Shipment US Express Service

$16.00 to $17.00

6.25%

Residential Delivery Charge Express Ground & Int.

$4.40 to $4.65

5.68%

FedEx Home Delivery Fee

$3.80 to $4.00

5.26%

2020 UPS Accessorials Fees, Dim, Fuel, & Additional Surcharges

  • The UPS & FedEx increase along with accessorials fees actually yields $2.6 billion dollars each year.
  • Surcharges increase 15% each year and it’s impossible for shippers to define all the new costs.
  • Carriers increase accessorial fees and surcharges which have the most impact on shipping costs.
  • Shippers must monitor closely all accessorial fees to understand the true cost involved in such fees.

UPS Accessorial Fees

2019 vs. 2020

Percentage Increase

Additional Handling US Length & Width Domestic

$13.50 to $15.00

11.11%

Additional Handling International Express — (Dimension)

$14.25 to $15.00

5.26%

Additional International

$14.25 to $15.00

5.26%

Address Correction Per Package

$16.40 to $17.00

3.66%

Maximum per GFP Shipment

$114.80 to $119.00

3.66%

Chargeback for Consignee Billing Shipments

$16.40 to $17.00

3.66%

Collect on Delivery (C.O.D.)

$14.50 to $15.50

6.90%

Dangerous Goods Hazardous Domestic Air Accessible

$98.00 to $105.00

7.14%

Dangerous Goods Hazardous Domestic Air Inaccessible

$49.00 to $51.50

5.10%

Dangerous Goods Hazardous Ground

$35.00 to $37.00

5.71%

Dangerous Goods Intern Air Accessible Per Shipment

$153.50 to $162.50

5.10%

Dangerous Goods Intern Air Accessible Per Package

$18.43 to $19.51

5.10%

Dangerous Goods Intern Air Inaccessible Per Shipment

$75.50 to $81.00

7.28%

Dangerous Goods Intern Air Inaccessible Per Package

$9.06 to $9.72

7.28%

Delivery Area Surcharge Air Commercial

$2.95 to $3.10

5.08%

Delivery Area Surcharge Extended Air Commercial

$2.95 to $3.60

22.03%

Delivery Area Surcharge Ground Commercial Extended

$2.80 to $3.45

5.36%

Delivery Area Surcharge Ground Residential

$3.80 to $4.00

5.26%

Delivery Area Surcharge Ground Residential Extended

$4.85 to $5.40

11.34%

Delivery Area Surcharge Air Residential

$4.35 to $4.40

1.15%

Delivery Area Surcharge Air Residential Extended

$4.85 to $5.40

11.34%

Delivery Area Surcharge Import

$2.30 to $2.40

4.35%

Delivery Area Surcharge CWT Air Commercial

$14.25 to $15.50

8.77%

Delivery Area Surcharge CWT Air Commercial Extended

$14.25 to $18.00

26.32%

Delivery Area Surcharge CWT Ground Commercial

$13.50 to $14.75

9.26%

Delivery Area Surcharge CWT Ground Commercial Ext

$13.50 to $17.25

27.78%

Delivery Area Surcharge CWT Air Residential

$21.00 to $22.00

4.76%

Delivery Area Surcharge CWT Ground Residential

$18.25 to $20.00

9.59%

Delivery Area Surcharge CWT Ground Residential Ext.

$23.25 to $27.00

16.13%

Signature Required

$5.00 to $5.25

5.00%

Adult Signature Required

$6.05 to $6.35

4.96%

Dry Ice

$5.55 to $5.85

5.41%

Large Package Surcharge International

$95.00 to $100.00

5.26%

Large Package Surcharge Commercial Domestic

$95.00 to $100.00

5.26%

Large Package Surcharge Residential Domestic

$115.00 to $120.00

4.35%

Residential Surcharge Ground and Standard

$3.95 to $4.10

3.80%

5R4 Residential Surcharge CWT

$40.00 to $41.85

5.26%

Daily Pickup $0.00 – $74.99 Weekly

$29.00 to $31.00

6.90%

Daily Pickup $75.00 +

$14.50 to $15.50

6.90%

Missing/Invalid Account Number

$16.40 to $17.00

3.66%

2020 In-depth assessment of the Actual UPS Rate Increase.

Parcel Audit Appraisal & Negotiations Group can help shippers determine the financial impact of the 2020 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.

 

Click here to download the 2020 UPS Rate Increase Graphs by services

FedEx & UPS 2001 to 2020 Increase History

UPS 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Increase Date 12.29.2019 12.26.2018 12.24.2017 12.26.2016 12.28.2015 12.29.2014 12.30.2014 12.31.2013 01.02.2012 01.03.2011 01.04.2010 01.05.2009 12.31.2007 01.01.2007 01.02.2006 01.03.2005 01.05.2004 01.06.2003 01.07.2002 02.05.2001
Ground 4.90 % 4.90 % 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%
Domestic Air 4.90 % 4.90 % 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%
Export 4.90 % 4.90 % 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%
Ground CWT: 4.90 % 4.90 % 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%
Residential Ground $4.10 $3.95 $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
Residential Air $4.70 $4.45 $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
DAS Comm Air $2.95 $2.80 $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
DAS Residential $4.00 $3.80 $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
DAS Com Extend $3.45 $2.80 $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
DAS Resi Extend $5.40 $4.85 $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
Ground Minimum $8.23 $7.85 $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
Ground Mini %+ 4.8% 3.7% 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%
Dim Domestic 139 139 139 139-166 166 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
Dim International 139 139 139 139 139 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
               
               
FedEx 2020 2019 2018 2017 2016 2015 2014 2013 2012 2010 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Increase Date 01.06.2020 01.07.2019 01.02.2018 02.01.2017 01.04.2015 01.05.15 01.06.2014 01.07.13 01.02.2012 01.03.2011 01.04.2010 01.05.2009 01.07.2008 01.01.2007 01.02.2006 01.03.2005 01.05.2004 01.06.2003 01.07.2002 02.01.2001
Ground 4.90% 4.90% 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%
Domestic Air 4.90% 4.90% 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%
Export 4.90% 4.90% 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%
Ground CWT 4.90% 4.90% 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
Residential Ground $4.65 $4.40 $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
Residential @Home $4.00 $3.80 $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
Residential Air $4.65 $4.40 $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
DAS Comm Air $3.10 $2.85 $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
DAS Residential $5.40 $4.65 $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
DAS Ground $3.10 $2.85 $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
DAS Com Extend $3.60 $2.85 $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
DAS Resi Extend $5.40 $4.65 $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
Ground Minimum $8.23 $7.85 $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
Ground Mini %+ 5.0% 3.6% 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%
Dim Domestic 139 139 139 139-166 166 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
Dim International 139 139 139 139 139 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

 

UPS 2020 Rate Increase details by Services

Click HERE to to view an Excel version