2023 Shipping Carrier Rate Change Updates
Throughout the year, UPS® and FedEx®, similar to the USPS®, update their rates. Below are highlights for the 2022-2023 rate change. Learn more by watching our recently recorded webinar: 2023 Shipping Rates: Get Informed and Be Prepared
UPS Rate Change Highlights
Effective December 27, 2022, there will be an average 6.9% general rate increase across base pricing and accessorial fees.
- Package minimums are now (for the first time) above $10
- Overall, 6.6% average increase for shipments going to Zones 4 or below
- Overall, 8.7% average increase for Zones 5+ to reduce long distance deliveries
- Ground residential surcharge up from $4.85 to $5.25
- Delivery Areas Surcharges for Residential Ground up from $4.80 to $5.30
- Address Correction fees increase from $18 to $19.50
- 7+% increase for UPS Ground, UPS 3 Day Select, UPS 2nd Day Air, UPS Next Day Air Saver
- Additional Handling (Weight, Dimensions, Packaging) up from 13% to 23%
- Large package surcharge for zone 2 up from $135 to $160
- UPS Residential Surcharge up 8% in addition to the delivery area surcharges (DAS)
For more details and the full rate card, click here.
Create a free UPS account in PitneyShip® software to:
- Lower shipping costs: Access up to 77% off UPS Ground rates and 88% off international services.
- Eliminate surcharges: Avoid peak and other common surcharges, including fuel and Saturday Delivery for Ground shipments.
- Start shipping today with no volume requirements: Create an account to access UPS rates and compare rates across carriers.
FedEx Rate Change Highlights
Effective January 3, 2023, there will be an average 6.9% general rate increase across base pricing.
- Package minimums are now (for the first time) above $10
- Additional Handling Surcharge for zone 3 is up nearly 19% from $16 to $19
- Oversize up 18% for Home Delivery with zone 2 increasing from $135 to $160
- 16.4% average increase for shipments going to Zone 7+ across the board to reduce long distance deliveries Address Corrections up from $19.50 to $21
- Delivery Area Surcharge up 10% for US Express Residential, Ground Residential and Home Delivery – now all up from $6.50 to $7.15
- New in 2023 there will be a Remote Area Surcharge of $13.25
- Important note: Since this is a brand-new surcharge, it is not within current negotiated contracts with their clients and therefore cannot be avoided
For more details and the full rate card, click here.
Carrier Peak Season Surcharges
What are peak surcharges?
Peak surcharges are additional fees charged by carriers due to the increased cost of shipping during the holiday season. The charges vary by carrier and are different each year.
How long do the peak surcharges last?
The effective dates of the surcharges will differ by carrier.
FedEx: September 5, 2022 – January 15, 2023
UPS: October 2, 2022 – January 14, 2023
Amazon: October 15, 2022 – January 15, 2023
USPS: October 2, 2022 – January 22, 2023
Prepare for the holiday shipping rush. Don’t miss these important delivery deadlines.
| Service | Shipping Cutoff Date |
|---|---|
| USPS Retail Ground™ | December 17, 2022 |
| USPS First Class Mail® | December 17, 2022 |
| USPS Priority Mail® | December 19, 2022 |
| USPS Priority Mail Express® | December 23, 2022 |
| Service | Shipping Cutoff Date |
|---|---|
| UPS® Ground | Check ups.com/ctc |
| UPS 3 Day Select® | December 19, 2022 |
| UPS 2nd Day Air® Services | December 21, 2022 |
| UPS Next Day Air® Services | December 22, 2022 |
| Service | Shipping Cutoff Date |
|---|---|
| FedEx Ground® Economy | December 8, 2022 |
| FedEx Ground® | December 14, 2022 |
| FedEx Home® Delivery | December 14, 2022 |
| FedEx Express Saver® | December 20, 2022 |
| FedEx 2 Day® Services | December 21, 2022 |
| FedEx Same Day | December 23, 2022 |
UPS peak surcharges:
Beginning October 30, shippers billed for more than 20,000 packages will see a “Peak/Demand Surcharge” applied to certain UPS Air Residential, Ground Residential and SurePost shipments.
The surcharge is based on your baseline volume. Your baseline volume is the average weekly volume from June 5 through July 2 for the applicable shipping service. The surcharge is then applied on a weekly basis to all packages you’ve sent over 105% of the baseline volume for each service. UPS will use the average weekly volume from September 4 to October 2 instead, if it is less than 80% of the June-July period’s volume.
Effective October 30, 2022: UPS per-package peak surcharge, based on shipments over shipper’s ‘baseline volume’.
| >105% to 125% | >125% to 150% | >150% to 200% | >200% to 300% | >300% to 400% | >400% | |
|---|---|---|---|---|---|---|
| UPS SurePost | $1.25 | $1.75 | $2.00 | $2.50 | $4.25 | $6.00 |
| UPS Ground Residential |
$1.25 | $1.75 | $2.00 | $2.50 | $4.25 | $6.00 |
| UPS Next Day Air Residential |
$2.25 | $2.75 | $3.00 | $3.50 | $5.25 | $7.00 |
| All Other UPS Air Residential |
$2.25 | $2.75 | $3.00 | $3.50 | $5.25 | $7.00 |
Learn more about how when you open a free UPS account through SendPro® Online/PitneyShip® you can simplify your shipping process and save money. There are no monthly volume minimums required and you can access pre-negotiated UPS rates of up to 86% off*.
*Discounts off UPS daily rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.
FedEx peak surcharges:
| Surcharge name1 | Applicable services | Surcharge amount | Effective date |
|---|---|---|---|
| Peak — Additional Handling Surcharge |
U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$3.45 per package $6.55 per package |
Sept. 5, 2022–Oct. 2, 2022 Oct. 3, 2022–Jan. 15, 2023 |
| Peak — Oversize Charge | U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$39.50 per package $68.75 per package |
Sept. 5, 2022–Oct. 2, 2022 Oct. 3, 2022–Jan. 15, 2023 |
| Peak — Ground Unauthorized Package Charge |
U.S. Ground Services, International Ground Service |
$385.00 per package | Oct. 3, 2022–Jan. 15, 2023 |
| Peak Surcharge | FedEx Ground® Economy Package Services2 |
$1.50 per package $2.50 per package $1.50 per package |
Oct. 31, 2022–Nov. 27, 2022 Nov. 28, 2022–Dec. 11, 2022 Dec. 12, 2022–Jan. 15, 2023 |
| Peak — Residential Delivery Charge |
FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate® packages). |
See Peaking Factor Chart below | Oct. 31, 2022–Jan. 15, 2023 |
The FedEx Peak - Residential Delivery Charge will dynamically each week. Click here to learn more about how your weekly shipping volume affects your Peaking Factor.
| Peak – Residential Deliver Charge per Package by Peaking Factor | ||||||
|---|---|---|---|---|---|---|
| >105%–125% | >125%–150% | >150%–200% | >200%–300% | >300%–400% | >400% | |
| FedEx Ground® | $1.25 | $1.75 | $2.00 | $2.50 | $4.25 | $6.00 |
| FedEx Express® | $2.25 | $2.75 | $3.00 | $3.50 | $5.25 | $7.00 |
Amazon peak surcharges:
| Size tier | Shipping weight | Peak base rate | Peak fulfillment fee (including fuel and inflation surcharge)1 |
|---|---|---|---|
| Small standard | 6 oz or less | $3.12 | $3.28 |
| 6+ to 12 oz | $3.27 | $3.43 | |
| 12+ to 16 oz | $3.79 | $3.98 | |
| Large standard | 6 oz or less | $3.84 | $4.03 |
| 6+ to 12 oz | $4.07 | $4.27 | |
| 12+ to 16 oz | $4.82 | $5.06 | |
| 1+ to 2 lb | $5.44 | $5.71 | |
| 2+ to 3 lb | $6.29 | $6.60 | |
| 3+ lb to 20 lb | $6.63 + $0.30/lb above first 3 lb | $6.96 + $0.32/lb above first 3 lb | |
| Small oversize2 | 70 lb or less | $9.94 + $0.38/lb above first lb | $10.44 + $0.40/lb above first lb |
| Medium oversize2 | 150 lb or less | $15.23 + $0.44/lb above first lb | $15.99 + $0.46/lb above first lb |
| Large oversize | 150 lb or less | $85.08 + $0.79/lb above first 90 lb | $89.33 + $0.83/lb above first 90 lb |
| Special oversize | Over 150 lb | $153.44 + $0.79/lb above first 90 lb | $161.11 + $0.83/lb above first 90 lb |
With one integration, all surcharges are handled
Pitney Bowes makes it simple to get access to the best shipping rates through a single platform. Sendpro Online/PitneyShip not only helps make shipping easier, it also allows you to compare shipping rates with peak season surcharges automatically reflected in the pricing. This makes it easy for your team to continue shipping as they always have, with no manual changes needed.