UPS and FedEx are raising their rates by an average of…
…4.9%. FedEx and UPS have zeroed in on a 4.9% increase in their 2018 shipping rates. Many of FedEx’s rate increases will take effect on January 1, 2018. UPS, however, will implement the majority of their fare hikes on December 24th of this year.
A UPS spokesperson stated, “This supports ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.”
No matter the reason, this will impact your business’s bottom line. Although an annual shipping increase may not come as a surprise, it’s still worth your attention. They say knowledge is power, and in this case, knowledge enables preparedness.
As we wrap up one fiscal year and enter another, let’s ensure we’re ready to tackle these new shipping rates. Here’s a closer look.
FedEx 2018 Shipping Rates and Surcharges and Fees
Beginning January 1, 2018, some of the service levels that FedEx’s 4.9% increase will impact include:
- FedEx Express.
- FedEx Ground.
- FedEx Home Delivery.
- FedEx SmartPost.
- FedEx Freight.
Additionally, FedEx One Rate pricing will increase by about 3.5% on January 1, 2018.
FedEx’s approximate 4.9% shipping increase also includes surcharges and fees, which will go into effect on January 1, 2018. Here’s a sampling of what’s about to change.
2018 Surcharges and Fees
| Service Level | 2017 Rate | 2018 Rate |
| Additional Handling Surcharge | $11 | $12 |
| Address Corrections | $14 | $15 |
| Delivery Area Surcharges | $2.60 – $24 | $2.70 – $26 |
| Oversized Charge | $72.50 | $80 |
| Residential Delivery Charge | $3.85 | $4.15 |
*Extensive details on every new surcharge and fee can be found here.
Beginning January 22, 2018, FedEx will impose a new dimensional weight factor of 139 on SmartPost parcels. SmartPost pricing will now be similar to FedEx Express and FedEx Ground.
Since SmartPost coordinates with the USPS to make these deliveries, this extra surcharge could significantly increase your normal shipping costs.
The following changes will go into effect on January 22, 2018:
- A surcharge will be applied to FedEx Express and FedEx Ground shipments billed to a third party.
- Criteria and pricing for packages that require additional handling, such as oversized or unauthorized packages, will change.
- SmartPost will apply dimensional weight pricing, and the non-machinable surcharge will change.
- FedEx Freight will implement an over-length surcharge of $85 per shipment. This will apply to shipments 8 feet or greater but less than 12 feet.
FedEx has posted all the fine print on its website.
You can also download rates to determine the shipping cost with FedEx Express, FedEx Ground, or FedEx Freight.
UPS 2018 Shipping Rates and Surcharges and Fees
UPS will increase its shipping rates by about 4.9%, and it has also revealed plans for new peak season surcharges next year.
Don’t let this dampen your holiday cheer too much. The surcharges will be relatively nominal. For example, the 2017 UPS Next Day Air surcharge is $0.81, while the 2018 UPS Next Day Air surcharge will be $0.84.
The following changes will take effect December 24, 2017:
- UPS Ground, UPS Air, and international services will increase by about 4.9%.
- The dimensional weight divisor for packages less than or equal to one cubic foot will be 139 for all US domestic services subject to daily rates or Alaska and Hawaii Rates.
Like its competitor, UPS’s surcharges and fees will increase next year. The 4.9% increase will take effect on December 24, 2017. Here’s another sample of what’s to come.
2018 Surcharges and Fees
| Service Level | 2018 Details |
| Additional Handling Surcharge | The additional handling surcharge will increase by $1.15. |
| Address Corrections | The address correction charge will increase by $2.50. |
| Delivery Area Surcharges | The delivery area surcharges will increase $0.10 – $0.30. |
| Over Maximum Limits | The over maximum limits charge will increase $350. |
| Residential Delivery Charge | The residential surcharge will increase by $0.15 – $4.45. |
*Extensive details on every new surcharge and fee can be found on the UPS website.
Seven months later, the following changes will take effect on July 8, 2018:
- The large surcharge for any US Domestic package delivered to a residential address will be $90.
- The additional handling surcharge for any US Domestic package exceeding 70 pounds will be $19.00.
UPS has posted all their 2018 rates and services online.
You can also download PDFs for their 2018 daily and retail rates.
Conclusion: Knowledge Is Power
Awareness is the first step in preparing for these rate hikes. By examining next year’s budget, you can at least control estimated shipping costs.
Remember your normal efforts to streamline the shipping process. You can still preset shipping costs, merge orders whenever possible, and simplify your return process. We’ve posted a handy guide on our website.
If you haven’t used the channel’s shipping templates yet, we can help you. Options such as Amazon’s Ship by Region templates and eBay’s Business Policies allow you to customize the shipping options you offer per item and the charges for each.
Schedule a Sellercloud demo today.
Related Posts
