When FedEx and UPS announce their annual rate increases, the headline number gets all the attention. But if you’re building your shipping budget around that single percentage, you’re likely missing the bigger picture.

General Rate Increases (GRIs) and surcharges made throughout the year are two components of evolving carrier pricing strategies. Understanding the distinction between GRI and surcharges is essential for smarter budgeting, stronger contract negotiations, and better control over your total parcel spend.

Key Takeaways

  • GRI is the general term for annual increases that includes base shipping rates and accessorials.
  • GRIs are predictable, annual, and announced in advance; changes to pricing and surcharges throughout the year develop much less predictably.
  • Surcharges can account for up to 30% of total shipping costs—often outweighing the GRI’s impact

What Is a General Rate Increase (GRI)?

A General Rate Increase is an annual adjustment to the base shipping rates charged by parcel carriers. Each year, FedEx and UPS announce their GRI as a percentage increase applied to published list rates across ground, express, and international services.

For 2026, both carriers announced a 5.9% GRI. The GRI sets the foundation for your shipping costs, establishing the baseline from which all other charges are calculated. It’s predictable, announced in advance, and applies universally to all shipments. But while the GRI gets the spotlight, it represents only one part of your total shipping expense.

​​What Are Shipping Surcharges?

Shipping surcharges are additional fees applied on top of base rates when specific conditions are met. Unlike the GRI, which applies to every shipment, surcharges are conditional—they depend on factors like where you’re shipping, what you’re shipping, and when the delivery occurs.

Common surcharges include:

Some apply to nearly every shipment, like fuel surcharges. Others only kick in under certain circumstances, such as delivering to a remote ZIP code or shipping a package that exceeds standard dimensions.

The challenge with surcharges is their variability. For example, fuel surcharges fluctuate weekly based on diesel and jet fuel prices. And carriers can introduce new surcharges—or raise existing ones—at any point during the year, often with little advance notice.

4 Key Differences Between GRIs and Surcharges

While GRIs and surcharges both increase your shipping costs, they operate in fundamentally different ways. Here’s how they compare:

1. GRIs Are Annual; Surcharges Change Year-Round

GRIs are announced once per year and take effect on a set date. Surcharges can change weekly, monthly, or whenever carriers decide to adjust them—sometimes with just a week’s notice.

2. GRIs Are Predictable; Surcharges Often Aren’t

The GRI is announced months in advance, giving shippers time to prepare. Surcharges are far less predictable, with changes often buried in carrier updates that are easy to miss.

3. GRIs Apply to All Shipments; Surcharges Are Conditional

A GRI applies across the board to all shipments using a carrier’s services. Surcharges only apply when specific conditions are met, meaning their impact varies based on your shipping profile.

4. GRIs Make Headlines; Surcharges Fly Under the Radar

GRIs spark industry conversation and get widespread coverage. Surcharges quietly accumulate on invoices, often going unnoticed until they’ve already taken a significant bite out of your budget.

Which One Impacts Your Budget More?

For most shippers, surcharges now have a greater impact on total costs than the GRI itself. And while surcharges may not seem like a major upfront cost, they can actually account for up to 60% of total shipping costs, depending on the program.

The 5.9% GRI is a known quantity—you can see it coming and plan accordingly. Surcharge creep is a different story:

  • Fuel surcharge rates shift weekly (but the underlying tables are trending quarterly)
  • Residential delivery fees can climb as ecommerce volumes grow
  • Delivery area surcharges expand to cover more ZIP codes each year

These incremental increases add up fast.

Consider a shipper who budgets strictly around the annual GRI. They plan for a 5.9% increase, but their actual costs rise 12% because residential surcharges jumped 8%, fuel surcharges spiked mid-year, and a handful of shipments triggered additional handling fees. The GRI told only part of the story—and their budget paid the price.

The bottom line: if you’re only watching the GRI, you’re not accurately preparing your budget.

How to Manage Both GRIs and Surcharges

Controlling shipping costs requires a strategy that addresses both the annual GRI and the surcharges that fluctuate throughout the year. Here’s where to start:

  • Know your shipping profile. Your shipping profile—the mix of service types, package dimensions, delivery zones, and surcharges that define your operation—determines which rate changes hit you hardest. If you don’t understand your profile, you can’t anticipate your exposure.
  • Monitor carrier announcements year-round. Don’t wait for the annual GRI to pay attention to pricing changes. Carriers release surcharge updates, policy adjustments, and fee changes throughout the year. Stay informed to avoid surprises.
  • Negotiate your shipping rates. Base rates are often negotiable, while surcharges are typically non-negotiable and can change frequently. Negotiating volume commitments and monitoring carrier performance are key to lowering costs. Read more about the 7 key strategies for negotiating your carrier contracts.
  • Invest in visibility. Parcel spend management tools give you ongoing insight into where your money is going. With real-time parcel visibility, you can catch cost creep early and make adjustments before small increases become major budget problems.

Take Control of Your Shipping Costs This Year

GRIs and surcharges both impact your shipping budget, but they require different approaches. The GRI is an annual event you can plan for. Surcharges demand ongoing attention and proactive management throughout the year.

Shippers who track both and understand how each affects their unique shipping profile will have far better control over their costs. Those who focus only on the headline general rate increase risk being blindsided by the fees that quietly accumulate on every invoice.

Ready to see the full picture? Download Reveel’s 2026 GRI and Surcharge Survival Guide for a complete breakdown of this year’s rate changes and actionable strategies to protect your budget.