Understanding the 2015 Small Package Rate Increases

11/26/2014 — Leah Palnik

Both FedEx and UPS announced their annual small package rate increases. The UPS rate increases will take effect on December 29, 2014, while the FedEx rate increases will take effect on January 5, 2015. As always, how much more expensive your particular small package shipments will be in the New Year largely depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts:

  • Dimensional weight pricing will now apply to all FedEx Ground and UPS Ground shipments.
  • FedEx Express package and freight rates will increase an average of 4.9% for U.S., U.S export and U.S. import services.
  • FedEx Ground and FedEx Home Delivery rates will increase an average of 4.9%.
  • UPS Ground, Air and International rates will increase an average of 4.9%.

The important takeaway when thinking about your shipping expenses in 2015 is that the announced average increases paint an inaccurate picture of the true impact these new rate increases could have on your business. If you find yourself confused by rate bases, average increases, surcharges, and DIM weight pricing — rest assured that PartnerShip is here to help. Our small package shipping experts have dug into the details and analyzed the new rate tables to assess the true impact to shippers and help you make sense of these increases. 

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