Shipping Carrier Rate Change Updates
Throughout the year, UPS® and FedEx®, similar to the USPS®, update their rates. Below are the highlights of the most recent rate changes.
UPS Rate Change Highlights
July 15, 2024 Update
UPS has released its demand (peak season) surcharges.
Additional Handling, Large Package, and Over Max Limits demand surcharges will be in effect from Sept 29, 2024, to Jan 18, 2025. SurePost, Ground Residential, and UPS Air surcharges will be in effect from Oct 27, 2024 to Jan 18, 2025.
UPS Demand Surcharges 2024
Additional Handling, Large Package, Over Max Limits
What’s changing this year?
There is an extra week that the demand surcharges on large packages will be assessed compared to last year: Sept 29 2024 – Jan 18 2025.
For the 2024-2025 peak season, UPS has separated the demand surcharges into three periods. Each period represents a significant increase over last year’s demand surcharges, with the Nov 24 to Dec 28 surcharges being the highest increase.
Here’s what the per package surcharges look like:
| Demand Surcharge |
Sept. 29, 2024 - Nov. 23, 2024 |
Nov. 24, 2024 - Dec. 28, 2024 | Dec. 29, 2024 – Jan. 18, 2025 |
| Additional Handling | $7.75 per package |
$9.95 per package | $7.75 per package |
| Large Package Surcharge | $84.75 per package |
$99 per package | $84.75 per package |
| Over Maximum Limits | $445 per package | $495 per package | $445 per package |
All Air, Ground Residential, and SurePost Packages (No Volume Requirement)
What’s changing this year?
In addition to the volume-based demand surcharges, UPS is bringing back demand surcharges on all Air, Ground Residential, and SurePost packages with no volume requirements.
As with the large package surcharge, there’s an extra week that these surcharges will be in effect Oct 27, 2024 – Jan 18, 2025. Also, like the large package demand surcharges, UPS is implementing three surcharge periods, one higher surcharge period, bookended by two smaller, but still significant surcharge periods.
Here’s what the per package surcharges look like:
| Service Level |
Oct. 27, 2024 - Nov. 23, 2024 |
Nov. 24, 2024 – Dec. 28, 2024 |
Dec. 29, 2024 – Jan. 18, 2025 |
| UPS SurePost® |
$0.25 per package |
$0.50 per package | $0.25 per package |
| UPS Ground Residential |
$0.25 per package |
$0.50 per package | $0.25 per package |
| UPS Next Day Air |
$1.00 per package | $2.00 per package | $1.00 per package |
| All Other UPS Air |
$1.00 per package | $2.00 per package | $1.00 per package |
Volume-based Surcharges for High-volume Shippers: Air, Ground Residential, and SurePost Packages
What’s new this year?
The volume-based demand surcharges are the same as last year, except shippers will incur an extra week of the demand surcharges between Oct 27, 2024 – Jan 18, 2025.
The volume-based surcharges affect anyone who’s shipped over 20,000 packages of combined Ground Residential, SurePost, and Air volume in any given week after October 2023.
UPS determines your “baseline” by taking your average weekly volume for the applicable service for June 2, 2024 – June 29, 2024. If your average weekly volume from September 1, 2024 – September 28, 2024 is less than 80% of your average June volume, then UPS will adjust your baseline calculation to be based on your September volume instead of your June volume. Like last year, there are six tiers ranging from 105% to >400% of baseline volume.
Surcharges are effective from October 27, 2024 – January 18, 2025:
| Service Level | >105% to 125% of Baseline Volume |
>125% to 150% of Baseline Volume |
>150% to 200% of Baseline Volume |
>200% to 300% of Baseline Volume |
>300% to 400% of Baseline Volume |
>400% of Baseline Volume |
| UPS SurePost & UPS Ground Residential |
$1.50 per package | $2.05 per package | $2.35 per package | $2.85 per package | $4.90per package | $7.05 per package |
| UPS Next Day Air & All Other UPS Residential |
$2.65 per package | $3.20 per package | $3.50 per package | $4.00 per package | $6.05 per package | $8.25 per package |
Rates as of December 26, 2023
There was an average 5.9% general rate increase across base pricing and accessorial fees.
- Package minimums are now $10.70
- For most services, Shorter Zones (2-4) average increase is lower than the 5.9% increase to better compete with Regional Carriers.
- Nearly 8% average increase for Zones 5+ for 2nd Day Air and 3-Day Select.
- Ground residential surcharge up 7.6% to $5.65
- Delivery Areas Surcharges for Residential Ground up from $5.30 to $5.70
- Address Corrections from $19.50 to $21
- 7% increase for UPS® Ground, UPS 3 Day Select®, UPS 2nd Day Air®, UPS Next Day Air Saver®
- Additional Handling (Weight, Dimensions, Packaging) increases range from 18-21%
- Large package surcharge for zone 2 up from $160 to $190
- ~9% increase for Over Maximum packages
- UPS Residential Surcharge up 7.6% in addition to 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 78% off UPS Ground rates and 82%* 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
Rates as of January 1, 2024
There was an average 5.9% general rate increase across base pricing and accessorial fees.
- Package minimums are now $10.70
- Additional Handling Surcharge (Weight) for zone 3-4 is up more than 21% from $19 to $23
- Oversize up almost 19% for Home Delivery with zone 2 increasing from $160 to $190
- 20+% increases for additional handling on shipments going to Zone 7+ across the board
- Address Corrections up from $21 to $22.50
- More important than ever to address your address issues
- Delivery Area Surcharges up over 7% for US Express Residential, Ground Residential and Home Delivery
- Remote area surcharge continues in 2024 and rises from $13.25 to $14.15 per package, a 6.3% increase for 2024
On April 5, 2023, FedEx announced that it will be consolidating its operating companies into one organization under Federal Express Corporation, to achieve its long-term goal of saving $4 billion by 2025. The consolidation will bring FedEx Express, FedEx Ground, FedEx Services, and other operating companies under a single company, expected to be fully implemented by June 2024. FedEx Freight will continue to operate as a stand-alone company. Check back for continued updates on the ever-changing carrier market.
For more details and the full rate card, click here.
*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.