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. Learn about new carrier rates affecting 2024 in our upcoming webinar. Register here.
UPS Rate Change Highlights
Beginning October 1, Demand Surcharges will apply to packages shipped during the specified periods for the origins, destinations, service levels and amounts – in addition to all other applicable Charges.
- Shippers billed for more than 20,000 packages will see a Demand Surcharge applied to certain UPS® Air Residential, Ground Residential and SurePost shipments.
- The surcharge is based on your baseline volume – the average weekly volume from June 5 - July 2, 2022 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 Sept. 4 – Oct. 2, 2022 instead, if it is less than 80% of the June-July period’s volume.
- Effective October 29, 2023: UPS per-package demand surcharge, based on shipments over shipper’s ‘baseline volume’.
Demand Surcharge – Applied to Additional Handling and Large Packages
| Other Charges | October 1, 2023 – January 13, 2024 |
| Additional Handling | $6.90 per package |
| Large Package Surcharge | $74.90 per package |
| Over Maximum Limits | $410 per package |
Demand Surcharge – Applied to UPS® Air Residential, UPS® Ground Residential and UPS SurePost® Packages
| >105% to 125% | >125% to 150% | >150% to 200% | >200% to 300% | >300% to 400% | >400% | |
| UPS SurePost | $1.35 | $1.85 | $2.15 | $2.60 | $4.45 | $6.40 |
| UPS Ground Residential | $1.35 | $1.85 | $2.15 | $2.60 | $4.45 | $6.40 |
| UPS Next Day Air Residential | $2.40 | $2.90 | $3.20 | $3.65 | $5.50 | $7.50 |
| All Other UPS Air Residential | $2.40 | $2.90 | $3.20 | $3.65 | $5.50 | $7.50 |
Rates as of December 27, 2022
There was 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 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
As of October 2, 2023, FedEx is adjusting their networks to best deliver for customers and anticipate the surge in residential volume to carry over into the new year. To continue providing customers with the best possible service, they are implementing the following demand surcharges and fees.
| Surcharge name | Applicable services | Surcharge amount | Effective date |
| Demand — Additional Handling Surcharge | U.S. Express Package Services, U.S. Ground Services, International Ground Service | $6.95 per package | Oct. 2, 2023 – Jan. 14, 2024 |
| Demand — Oversize Charge | U.S. Express Package Services, U.S. Ground Services, International Ground Service | $73 per package | Oct. 2, 2023 – Jan. 14, 2024 |
| Demand — Ground Unauthorized Package Charge | U.S. Ground Services, International Ground Service | $410 per package | Oct. 2, 2023 – Jan. 14, 2024 |
| Demand Surcharge | FedEx Ground® Economy Package Services2 | $1.60 per package $2.60 per package $1.60 per package |
Oct. 30, 2023 – Nov. 26, 2023 Nov. 27, 2023 – Dec 10, 2023 Dec. 11, 2022 – Jan. 14, 2024 |
| Demand — 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. 30, 2023 – Jan. 14, 2024 |
The FedEx Demand - Residential Delivery Charge will change dynamically each week. The Peaking factor is based on previous volumes before the peak period.
Demand – Residential Deliver Charge per Package by Peaking Factor |
||||||
| >105%–125% | >125%–150% | >150%–200% | >200%–300% | >300%–400% | >400% | |
| FedEx Ground® | $1.35 | $1.85 | $2.10 | $2.65 | $4.50 | $6.35 |
| FedEx Express® | $2.25 | $2.90 | $3.15 | $3.70 | $5.55 | $7.40 |
The Demand – Residential Delivery Charge will be assessed in addition to the customer's Residential Delivery Charge. Any contracted discount the customer may have on the Residential Delivery Charge will not apply to the Peak – Residential Delivery Charge. For invoicing purposes, this charge will be combined with the customer's Residential Delivery Charge.
Rates as of January 3, 2023
There was 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
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.
2023 shipping deadlines for holiday packages
Make sure your gifts arrive on time. Below are the published dates from the carriers that show the last day to ship so your packages are scheduled to arrive on or before Sunday, December 24.
USPS
Service |
Last Day to Ship |
First-Class Mail |
Sat. Dec. 16 |
Ground Advantage |
Sat. Dec. 16 |
Priority Mail |
Mon. Dec. 18 |
Priority Mail Express |
Wed. Dec. 20 |
UPS
Service |
Last Day to Ship |
Ground |
Wed. Dec. 13 |
3 Day Select |
Tues. Dec. 19 |
2nd Day Air |
Wed. Dec. 20 |
Next Day Air |
Thu. Dec. 21 |
FedEx
Service |
Last Day to Ship |
Ground Economy |
Wed. Dec 13 |
Ground |
Fri. Dec. 15 |
Express Saver |
Tues. Dec. 19 |
2 Day Services |
Wed. Dec. 20 |
Overnight |
Thu. Dec. 21 |
Same Day |
Fri. Dec. 22 |
*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.