UPS & FedEx 2021 Summary of the General Rate Increase

UPS & FedEx 2021 Summary of the General Rate Increase

FedEx Annual Rate Increase is effective January 4th, 2021 impacting the following services.

  • FedEx Ground & FedEx Home delivery shipment rates will increase an average of 4.9%.
  • FedEx US Export and Import delivery list rates will increase an average of 4.9%.
  • FedEx US Express overnight delivery rates will increase by an average rate of 4.9%.
  • FedEx Smart Post, Ground Heavyweight, and International Premium service will also increase.
  • FedEx Freight will increase between 4.9% to 5.9% for customers.
  • FedEx Ground Minimum will increase from $8.23 to $8.76, an additional $.053 per shipment, which is about a 6.5% rate increase.
  • FedEx finally has followed UPS and initiated a 6% late fee effective on January 21, 2021. The fee is for outstanding invoices not paid on time and based on the agreed upon payment terms.
  • FedEx added more zip codes to the current Delivery Area Surcharges U.S. ZIP codes. As a result, customers will pay additional cost for services.

UPS Annual Increase Rate is effective December 27, 2020 impacting the following services.

  • UPS Ground Service shipment rates will increase an average amount of 4.9%.
  • UPS Domestic Air Express overnight delivery rates will increase an average of 4.9%.
  • UPS US Export and Import delivery rates will increase an average of 4.9%.
  • UPS Surepost will be impacted by both Peak/Covid 19 surcharges and the General Rate Increase.
  • UPS Freight will increase between 4.9% and 5.9% for customers.
  • UPS Ground Minimum package rates will increase from $8.23 to $8.76 or an additional $0.53 per shipment, which is about a 6.5% rate increase.
  • Effective January 10, 2021, an Additional Handling charge will be applied to any package with its length plus girth combined exceeding 105 inches
  • Effective April 11, 2021, Additional Handling and Large Package Surcharge rates for non-Hundredweight Service packages will differ by zone, and effective July 11, 2021, Additional Handling and Large Surcharge rates for Hundredweight Service packages will differ by zone.

FedEx and UPS both halted the Money Back Guarantee earlier this summer due to the Covid 19. As a result, shippers are losing out on a minimum of 8% to 10% of the annual revenues spent each year.

FedEx and UPS have added a Covid and then a Peak surcharge to everyone’s rates. Now we are faced with a 25% increase in Fedex and UPS rates. Customers have been patient and extremely understanding. Now It is time for shippers to act appropriately and re-negotiate a new Pricing Agreement that is fair, equitable, and customer oriented.

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

FedEx Accessorial Fees

2020 vs. 2021

Percentage Increase

Additional Handling Surcharges

 
 

US Express, Ground & International Ground (Dimension)

$15.00 to $16.00

6.67%

International Express Package Services (Dimension)

$15.00 to $16.00

6.67%

US Express, Ground & International Ground (Weight)

$24.00 to $25.50

6.25%

International Express Package Services (Weight)

$24.00 to $25.50

6.25%

US Express US Ground International Ground (Packaging)

$13.00 to $14.00

7.69%

International Express Package Service (Packaging)

$13.00 to $14.00

7.69%

Address Correction US Express, International

$17.00 to $18.00

7.69%

Address Correction US & International Ground

$17.00 to $18.00

7.69%

COD fee Delivery US Express Package Service

$15.50 to $16.50

6.45%

COD fee Ground International Ground

$15.50 to $16.50

6.45%

COD fee Ground International Ground

$5.85 to $6.15

5.12%

Dangerous Good Dry Ice International Express

$5.85 to $6.15

5.12%

Dangerous Good (accessible) First Overnight

$105.00 to $115.00

9.52%

Dangerous Good (accessible) Priority Overnight

$105.00 to $115.00

9.52%

Dangerous Good US Express (inaccessible)

$51.50 to 54.50

5.82%

Declared Value Express Ground & International

$3.15 to $3.45 

9.52%

Delivery Area Surcharge

 
 
DAS US Express residential package services
$4.40 to $4.70
6.81%
DAS US Express Ground extended residential
$5.40 to $5.90
9.25%
DAS US Express Package Service Commercial
$3.10 to $3.25
4.83%
DAS US Express Service Extended Comm
$3.60 to $3.85
6.94%
DAS FedEx Ground Commercial
$2.95 to $3.10
5.08%
DAS FedEx Ground Extended Commercial
$3.45 to $3.70
7.24%
DAS Express Alaska residential commercial
$29.00 to $31.50
8.62%
DAS Express Hawaii residential commercial
$8.85 to $9.50
7.34%
DAS Ground Alaska Package Service
$30.00 to 31.50
5.00%
DAS Ground Intra-Hawaii Package Service
$1.00 to $1.10
10.0%
DAS Maximum Multiweight pricing residential
$15.50 to $16.25
4.90%
Adult Signature Required Domestic
$6.35 to $6.70
5.51%
Adult Signature Required International
$6.35 to $6.70
5.51%
Direct Signature & Indirect Signature Required
$5.25 to $5.55
5.71%
Ground weekly pickup US/International $75.00 +
$15.50 to $16.50
6.45%
Ground weekly pickup US/International $75.00 –
$31.00 to $33.00
6.45%
Hazardous Material FedEx Ground
$37.00 to $39.00
5.40%
Residential Delivery a US Express Package
$4.65 to $4.95
6.45%
Residential International to Canada all areas
$4.65 to $4.95
6.45%
Missing or invalid Account Number
$17.00 to $18.00
5.88%
Third Party Billing Surcharge
$2.50 to $4.50
80.0%
FedEx Express Tag
$6.10 to $6.45
5.73%
FedEx Ground Delivery
$4.00 to $4.35
8.75%
FedEx @Home Delivery Residential Service
$4.00 to $4.30
7.50%

2021 UPS Accessorials Fees, Dim, Fuel, & Additional Surcharges

UPS Accessorial Fees

2020 vs. 2021

Percentage Increase

Additional Handling Surcharges

 
 

Dimensions (Length, Width, Length, Girth)

$15.00 to $16.00

6.67%

Weight

$24.00 to $25.50

6.25%

Packaging

$14.25 to $15.25

7.01%

Address Correction

$17.00 to $18.00

7.69%

Collect on Delivery (COD)

$15.50 to $16.50

6.45%

Dry Ice 

$5.85 to $6.15

5.12%

Dangerous Goods Air Accessible

$105.00 to $115.00

9.52%

Declared Value from $100.01 to $300.00

$3.15 to $3.45

9.52%

Declared Value + $300.00 or portion of $100.00 

$1.05 to $1.15 

9.52%

Delivery Area Surcharge

 
 

DAS – Air Commercial

$3.10 to $3.25

4.83%

DAS – Air Commercial Extended

$3.60 to $3.85

6.94%

DAS – Ground Commercial

$2.95 to $3.10

5.08%

DAS – Ground Commercial Extended

$3.45 to $3.70 

7.24%

DAS – Ground Residential

$4.00 to $4.30

7.50%

DAS – Ground Residential Extended

$5.40 to $5.90

9.25%

DAS – Air Residential    

$4.40 to $4.70

6.81%

DAS – Air Residential Extended 

$5.40 to $5.90

9.25%

DAS – Hundredweight Air Commercial   

$15.50 to $16.25

4.83%

DAS – Hundredweight – Air Commercial Extended

$18.00 to $19.25

6.94%

DAS – Hundredweight Ground Commercial

$14.75 to $15.50

5.08%

DAS – Hundredweight Ground Commercial Extended

$17.25 to $18.50

7.24%

DAS – Hundredweight Air Residential

$22.00 to $23.50

6.81%

DAS – Hundredweight Air Residential Extended  

$27.00 to $29.50

9.25%

DAS – Hundredweight Ground Residential

$20.00 to $21.50

7.50%

DAS – Hundredweight Ground Residential Extended

$27.00 to $29.50

9.25%

Delivery Confirmation Signature Required

$5.25 to $5.55

5.71%

Delivery Confirmation Adult Signature Required 

$6.35 to $6.70

5.51%

Large Package Surcharge Commercial (Domestic)

$100.00 to $105.00

5.00%

Large Package Surcharge Residential (Domestic)

$120.00 to $130.00

8.33%

Missing or invalid Account Number

$17.00 to $18.00

5.88%

Residential Surcharge Ground  

$4.10 to $4.45

8.53%

Residential Surcharge Air

$4.70 to $5.00

6.38%

Residential Surcharge Hundredweight   

$41.85 to $43.20

3.22%

Third Party Billing Service

$4.50 to $5.00

11.0%

Ground weekly pickup US/International 0 – $75.00

$15.50 to $16.50

6.45%

Ground weekly pickup US/International $75.00 – plus

$31.00 to $33.00

6.45%

Actual calculations of the Fedex rate increases for 2021

Parcel Audit Appraisal & Negotiations Group can help shippers determine the financial impact of the 2021 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 2021 Fedex Rate Increase Graphs

FedEx & UPS 2001 to 2020 Increase History

UPS 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Increase Date 12.27.2020 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 % 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 % 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 % 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 % 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 $4.45 $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 $5.00 $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 $3.10 $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 $4.30 $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 $3.70 $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 $5.90 $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 $8.76 $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 %+ 6.5% 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 139 139 139 139 139-166 166 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 139 139 139 139 139 139 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 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2010 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Increase Date 01.04.2021 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% 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% 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% 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% 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 $4.95 $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 $4.30 $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 $4.95 $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 $3.25 $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 $5.90 $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 $2.95 $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 $3.85 $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 $5.90 $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 $8.76 $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 %+ 6.5% 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 139 139 139 139 139-166 166 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 139 139 139 139 139 139 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 2021 Rate Increase by Services

Click HERE to to view an Excel version