Understanding the UPS and FedEx Small Package Rate Increases

11/13/2015 — 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 will be effective December 28, 2015, while the new FedEx rates take effect on January 4, 2016. 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: 

• FedEx Express package rates are increasing an average of 4.9% for U.S., U.S export, and U.S. import services. 
• UPS Air and International package rates are increasing an average of 5.2%. 
• FedEx Ground and FedEx Home Delivery rates are increasing an average of 4.9%. 
• UPS Ground rates are increasing an average of 4.9%.

The important takeaway when thinking about your shipping expenses in 2016 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. Learn more about how the 2016 rate increases will affect your shipping costs by downloading the free white paper at PartnerShip.com/RateIncrease.

Download: Understanding the 2016 Small Package Rate Increases