It is right to assume that current market conditions are driving up the cost of shipping, but rate increases are nothing new to the world of shipping. In fact, UPS implements a general rate increase, or GRI, year over year. Let’s take a look at what this entails.
The General Rate Increase for 2022
On October 28, 2021 UPS announced a 5.9% General Rate Increase on UPS Ground, UPS Air, and international services that will go into effect December 26, 2021. On top of the announced 5.9% increase, shippers should also be aware of the additional surcharges that are baked into the cake. Reveel’s data scientists did the number crunching and found that some industries could see substantially higher increases.
For an in-depth impact analysis of these rate increases and surcharges, be sure to check out our 2022 UPS Rate Increase Guide to get informed.
Historical UPS Rate Increases
As mentioned, these rate increases are common practice for the large carriers and the increase of 5.9% on UPS Ground is the highest increase we have seen since 2013. The table below outlines the historical data on UPS rate increases over the last 10 years.
|Year||UPS Air||UPS Ground|
So now the question arises—what can you do to prepare for these annual increases?
Get Smart With Reveel’s Shipping Intelligence
There’s no getting around it—it’s a near guarantee that your business will be affected by these rate increases. While it’s unfortunate that UPS continues to prioritize profits above all else, there’s something you can do about it.
Don’t be caught off guard. Tap into Reveel’s Shipping Intelligence® platform to:
- Forecast how these changes will affect your shipping costs
- Audit your invoices to recoup any and all refunds
- Identify the fees you should negotiate to make the biggest impact on your bottom line
Now that FedEx and UPS have both published their base rates, Reveel is offering a free impact analysis using our Shipping Intelligence Platform and your unique shipping profile. Be sure to sign up for our Essential Edition (free) now and be ready to see what impact the General Rate Increases will have on your shipping expense when the increases go into effect on December 26, 2021.
Sign up for the FREE version of the Shipping Intelligence platform today!