UPS® has Announced their 2017 Rate Increase

September 2, 2016

With each new year comes rate increases from FedEx® and UPS®, but this time, UPS is beginning their rate increases in December, potentially affecting your holiday shipping plans. Here are highlights from the announcement:

 

  • The announcement is a standard 4.9%. However, each year UPS (and in time FedEx) announce this rate increase as an average. Typically, the year-over-year increase for customers in the 1-10lbs segment can be as high as 9%. 
     
  • In June, UPS announced a change to their Additional Handling Surcharge –customers now pay an extra charge on shipping packages measuring 48 inches or longer, down from 60 inches. As part of this announcement, UPS is applying the same change to Ground, Air and international shipments. 

    View 2017 Selected Daily Rates Package Surcharge Changes
     
  • It is important to note that this rate increase takes place December 26th, 2016, not in 2017!  Consequently, shippers may very well be affected (especially those with return shipments and backorders from the holiday rush) this year. 
     
  • UPS will now start applying the additional handling surcharges to SurePost packages. The Large Package Surcharge will increase $2.50 while the Over Maximum Limits charge will increase to $3.50.


How does this affect you? 

As large pricing increases year-over-year, especially for surcharges, visibility into what these charges are becomes especially important. Incorporating shipping software allows greater visibility within the enterprise, and instant tracking once packages leave your facility. This visibility empowers shippers to track packages, which in turn, saves your shipping and customer service department’s time.

Additionally, your ability to compare these costs on an apples-to-apples basis with other carriers, including the USPS® (who does not charge most of these surcharges) becomes critical to ensuring you’re shipping is always cost-effective. Neopost's Enhanced Mail & Shipping (EMS), for example, is a scalable solution for a single site or multi-site enterprises that gives employees anywhere the ability to rate shop and compare shipping costs across multiple carriers.

*For more details about this rate change, check out rates.ups.com

 

Comments

October 14, 2016 at 1:21 pm
EVelyn
What I understand is UPS rate change will start on Dec. 26th with a 4.9 % increase.
Reply »
September 7, 2016 at 4:12 pm
Judy Guariento
When in December will UPS increase their fee?
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September 7, 2016 at 5:57 pm
Katie
Hi Judy, This rate increase begins December 26th, 2016.
Reply »
September 7, 2016 at 1:45 pm
Star Emery
We have one of your postage machine will the machine automatic up to the new price?
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September 7, 2016 at 2:22 pm
Katie
Hi Star, The article above is about United Parcel Service (UPS®) rate changes, not the United States Postal Service (USPS®) rate changes...So you don’t have to worry about your meter needing updates.
Reply »

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