UPS announced their general rate increase for 2022 and it’s a hefty average of 5.9%. To no one’s surprise, it matches the same substantial jump FedEx announced earlier this month.
UPS’ average rate increases have gone hand in hand with FedEx’s for many years, which also makes this the biggest jump since 2013.
Here’s a quick look at the increases:
Residential surcharge
Increasing from $4.45 to $4.85
Additional Handling Rates
| 2021 price per package | 2022 price per package | |
| Exceed weight limit | $25.50 | $25.25 – $30.50(by zone)* |
| Exceed dimension limit | $16 | $15.75 – $20.50(by zone) |
| Non-standard packaging | $15.25 | $14 – $17.50(by zone) |
*Some surcharges now assessed based on zone
Large Package Surcharges
| 2021 price per package | 2022price per package | |
| Commercial | $105 | $110 – $140(by zone)* |
| Residential | $130 | $135 – $165(by zone) |
*Some surcharges now assessed based on zone
Expect these rates to go into effect immediately after Christmas, on December 26, 2021.
Small Businesses Bear the Brunt
With labor shortages, supply chain problems and continued COVID-19 related logistical problems, you can almost justify the increase as the cost of doing business in today’s world. But UPS stock earnings continue to climb, and the company isn’t shy about sharing their cost-cutting measures.
“We’re not just avoiding costs, we’re taking costs down,” CFO Brian Newman told MarketWatch.
It’s clear that these bigger price increases are meant to pass any costs onto consumers. Unfortunately, already struggling small businesses are likely to bear the brunt of it.
We’re Here to Help
As always, we’re here to help you learn how to offset the rising costs of shipping. We’ve put the data to work for us. The Reveel Shipping Intelligence® platform and our team can help you lower your shipping costs by as much as 30%.
Deep Dive into the UPS GRI
UPS doesn’t make it easy to decipher their pricing—so we did it for them. Download a free copy of our 2022 UPS General Rate Increase Guide to see:
- Rate increases for common surcharges
- UPS pricing trends over the last 10 years
- How to forecast shipping costs with the new rates
The Reveel App uses AI and machine learning to provide an unparalleled look into what’s impacting your bottom line. Through invoice audits, AI and Machine Learning technology, and rate modeling/simulations, you can see the health of your operation and assess pricing changes from parcel carriers like FedEx and UPS. Sign up for a free Reveel account today to see how you can leverage automation to synthesize your data, ship more for less, and reduce the time needed to identify issues and action items.
