October 25, 2022 •Deyman Doolittle
Following the announcement of its main competitor, FedEx, UPS announces that it will also be increasing its rates by 6.9%. The UPS rate increase will go into effect on December 27, 2022, one week earlier than its counterpart. This is their largest general rate increase (GRI) in history, following a 5.9% increase last year, and an annual 4.9% increase prior to that.
These increases come with an asterisk at the bottom stating "The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement." This likely means that you will have an increase higher than 6.9%, mostly due to surcharges.
About the GRI:
2023 Package Rates
Effective December 27, 2022
Rates are increasing exponentially by zone distance
Zones 2-4 will see a rate increase below 6.9%, likely to compete with regional shippers.
Zones 6-8 will see the largest rate increases.
*3-Day Select shippers will not see the same extreme in increases this year.
Ground Minimum Package Charge
| Minimum Net Charge | 2022 Rate | 2023 Rate | % Increase |
| 3 Day | $13.73 | $14.59 | 6.3% |
| 2 Day | $21.23 | $22.82 | 7.5% |
| Ground | $9.36 | $10.10 | 7.9% |
| Next Day Air Saver | $31.54 | $34.22 | 8.5% |
| Next Day Air | $34.50 | $37.44 | 8.5% |
Visit UPS for the full lists of Daily Package Rates, Alaska & Hawaii Daily Rates, and Hundredweight Service Rates.
2023 Value-Added Services & Other Charges (Surcharges)
Effective December 27, 2022
As shown above, the most common surcharges will increase more than the 6.9% GRI. With surcharges making up for 20-40% of a parcel shipper's annual spend, these increases could be detrimental without a deep understanding of the impact.
| Surcharge | 2023 Rate | % Increase YOY |
| Additional Handling |
Dimension: Zone 2: $18.50 per package |
17.5% |
| Address Correction | $19.5 per correction | 8.3% |
| Large Package Surcharge |
Commercial: Zone 2: $135 per package Residential: Zone 2: $160 per package |
22.7%
18.5% |
| Over Maximum Limites | $1,150 per package | 12.2% |
|
Delivery Area Surcharge, Ground Commercial Delivery Area Surcharge, Ground Residential |
$3.70 per package $5.30 per package |
8.8% 10.4% |
|
Residential Surcharge, Ground Residential Surcharge, Air |
$5.25 per package $5.85 per package |
8.3% 9.4% |
For the full list of surcharge changes visit FedEx.
Additional Changes for 2023
Effective December 27, 2022
- Scheduled Pickups Options will no longer vary by weekly billing total
- Late Payment Fee will increase from 6% to 8%
- Peak/Demand Surcharges will also be referred to as Demand Surcharges
- This indicates that peak surcharges are officially no longer temporary, and will be built in to the annual prices.
- The list of ZIP codes aligned to certain zones will change