- 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