On 12/5/2018, UPS announced their General Rate Increase for 2019, with an effective date of 12/26/2018. Typically carriers are required to provide 30-day advance notice to shippers, but this year UPS only provides a three-week heads- up on their announcement.
The announced average increase is 4.9% for UPS Ground, UPS Air/International Services, and UPS Freight. Announced Surcharge net increases are 5% or more.
UPS list rates have been consistently increasing year-over-year for both Air and Ground. The cost of a one-pound package shipped from Atlanta to Dallas using Next Day Air service would increase from $27.50 in 2007 to $63.18 in 2019 (not including surcharges) – an increase of 130%.
UPS 2018 Peak Surcharges
UPS increases Peak Surcharges starting from Oct. 1st to Dec. 29th, 2018, based on service level and package type for Daily Rates, Alaska and Hawaii Rates, and UPS Hundredweight Service Rates.
UPS Fuel Surcharge – UPS has made several adjustments on fuel in 2018:
- Effective Dec. 31, 2018, 0.25% increase for Domestic Air
- Effective Oct. 15, 2018, 0.50% increase for International Air-Import
- Effective Oct. 1, 2018, 0.25% increase for Ground and Domestic Air
- Effective on Jun. 11, 2018, 0.50% increase for Ground
Other Rate Changes
Effective Dec. 26, 2018, Fuel Surcharges will be applied to Additional Handling, Over Maximum Limits and Signature and Adult Signature. A Processing Fee of $2.00 per package will be charged when Package Level Detail (PLD) is not provided to UPS.
Effective Oct. 22, 2018, a shipping charge correction Audit Fee will be assessed when average shipping correction is more than $2.00 per invoice week.
Effective June 4, 2018, an Audit Fee is assessed at the greater of $1.00 per package or 6% of the total amount of shipping charge correction if the average shipping charge correction is more than $5.00 per invoice week. In addition, Over Maximum Limits and the Oversized Pallet Handling Surcharge increased by $150.00.
Next Day Air Early
UPS retained the flat premium of Next Day Air Early over Next Day Air at $30.00 across zones and weight breaks. Less-than-average increases are applied for low weight packages for all zones. Average GRI by Zone increases run from 4% up to 6.57%.
Next Day Air
Next Day Air rate increases are consistent at 5.42% across zones for weight up to 50 lbs. Rates for packages over 50 lbs. increase by 7.76% on average across zones 2 to 8. Puerto Rico gets less-than-average increases of 4.8%, but Alaska/Hawaii get much higher rates across weight breaks (7.14% for Metro and 7.54% for Remote deliveries).
Next Day Air Saver
Next Day Air Saver rates increase by a constant 3.5% for weight up to 50 lbs. Rates for all other zones increase by 5.6% for this weight break. Packages over 50 lbs. will see an increase of 7.3% on average across all zones.
Short zones (zones 2 – 4) get a 4.73% rate increase for weight up to 50 lbs. Packages over 50 lbs. get much higher increases averaging 7.71% across zones.
2-Day Air Rates increase higher than the average across zones and weight breaks. Packages up to 50 lbs. get 6.23% on average rate increase across zones, 100 lbs. packages get a 7.54% increase, and packages over 100 lbs. get a flat 8% increase.
3-Day Select packages increase 5.6% on average across zones, higher than the announced 4.9% GRI.
Lighter packages under 20 lbs. get less-than-average increases across zones. Packages from/to Alaska and Hawaii get only a 4.3% increase but Puerto Rico gets a 7.1% increase across weight breaks.
Light packages (up to 9.0 lbs.) get a 9.02% increase across zones 2 to 8. Packages from/to Alaska, Hawaii and other U.S. Territories get a flat 4.0% increase, but APO/FPO will see an increase of 12% for packages over 49 lbs.
Faced with ever-changing rates and rules, shippers, big or small, need industry experts to help them navigate through the complex landscape of parcel shipping. AFS focuses on your business’s shipping needs, minimizes shipping charges, and trims out excess spending so you can focus on what you do best – running your business. Give us a call today at 877-242-3383 or email us at [email protected] for more information.