Understanding the UPS and FedEx Rate Increases
11/11/2016 — Leah Palnik
Every year small package carriers FedEx and UPS evaluate their shipping rates and make adjustments that can have a substantial effect on you and your business. The UPS rate increases take effect on December 26, 2016, while the new FedEx rates take effect on January 2, 2017. As always, how much more expensive your particular small package shipments will be in the new year depends on many factors, including shipment volumes, sizes, weights, and modes.
Here are some quick facts:
- FedEx Express and International rates are increasing an average of 3.9%
- UPS Air and International rates are increasing an average of 4.9%
- FedEx Ground and Home Delivery® rates are increasing an average of 4.9%
- UPS Ground rates are increasing an average of 4.9%
- The dimensional divisor for FedEx domestic packages is changing from 166 to 139
- UPDATE: the dimensional divisor for UPS domestic packages greater than 1,728 cubic inches is changing from 166 to 139
- FedEx SmartPost®, FedEx One Rate®, and UPS SurePost® rates will be changing
The important takeaway when thinking about your shipping expenses in 2017 is that the announced average increases paint an inaccurate picture of the true impact these new rates could have on your business. The shipping experts at PartnerShip® 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 changes. Learn more about how the 2017 rate increases will affect your shipping costs by downloading our free white paper!