08 Nov 2018 UPS Rate Changes Increase Rates 4.9%
UPS Announces Their 2018 Rate Changes
Coming on the heels of pretty hefty across the board FedEx shipping increases, UPS just announced a notable increase in shipping rates. 2018 UPS rate changes increase rates on U.S. ground and air shipments and international services by an average of 4.9% starting Dec. 24. Air-freight rates within and between the U.S., Puerto Rico and Canada will increase by the same amount.
All of this due to an effort UPS describes as needed to support ongoing expansion and capability enhancements.
2018 UPS Rate Changes in Detail
Generally, when one of the carriers announces a rate change, you have to dig into the details to figure out exactly how it will impact your shipping profile. This year – with a few exceptions – it’s pretty straight forward. Though UPS announced the 2018 rate changes in several bullets in their press release (we’ll include their language below), it boils down to if you use UPS to ship, you will see a 4.9% increase.
In addition to a general rate hike across all services, UPS raised the rates 4.9% on December 4 for UPS Freight non-contractual less-than-truckload (LTL) shipments rated on the current UPS Freight Tariff 580 and will be available at ltl.upsfreight.com.
On July 8, 2018, UPS shippers will see additional increases to service. The Large Package surcharge delivered to any U.S. domestic address will cost $90. A Large Package is determined by Dimensional Weight. A Large Package Surcharge will be applied to each UPS package when its length exceeds 96 inches or length plus girth [(2 x width) + (2 x height)] combined exceeds 130 inches but does not exceed the maximum UPS size of 165 inches. Large Packages are subject to a minimum billable weight of 90 pounds in addition to the Large Package Surcharge. Previously the added surcharge fee also covered additional handling. Not anymore! Starting July 8, 2018, if your package qualifies as a Large Package and over 70 lbs actual weight, you pay the $90 surcharge, and also subject to a $19 increase in handling fees. If these fees seem too extraordinary, find out if Regional Parcel Carriers fits your business.
With all of this in mind, it’s more important than ever that you have a parcel auditing plan in place and that you are on top of filing for any guaranteed service refunds that you are entitled to
Here are the details from the recent UPS press release.
- Effective December 24, 2017, the rates for UPS® Ground, UPS Air and International services will increase an average net 4.9%.
- Effective December 24, 2017, The Large Package Surcharge will apply to any U.S. Domestic package with a length exceeding 96 inches or a length plus girth greater than 130 inches.
- Effective December 24, 2017, The dimensional weight divisor for packages less than or equal to one cubic foot in size (1,728 cubic inches) will be 139 for all U.S. Domestic services subject to Daily Rates or Alaska and Hawaii Rates.
- Effective July 8, 2018, The Large Package Surcharge for any U.S. Domestic package delivered to a residential address will be $90.
- Effective July 8, 2018, The Additional Handling surcharge for any U.S. Domestic package exceeding 70 pounds in actual weight will be $19.00.
For Air Freight
- Effective December 24, 2017, the rates for UPS Air Freight within and between the U.S., Canada and Puerto Rico will increase an average net 4.9%.
For UPS® Freight
- Effective December 24, 2017, The rates for UPS Freight non-contractual less-than-truckload (LTL) shipments rated on the current UPS Freight Tariff 580 will increase an average net 4.9% and will be available at ltl.upsfreight.com. This increase applies only to Tariff 580 UPS Freight density-based rates.
*The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.