UPS and Federal Express Shipping Rates

FedEx announced their 2018 shipping rate changes. Express Rate Changes as of 1/1/2018  are averaging a 3.5% increase. The details affect list rates, surcharges, fees and other factors that impact shipping rates. Effective January 1, 2018, FedEx Express, FedEx Ground, FedEx Home Delivery®, FedEx SmartPost® and FedEx Freight rates increased, and FedEx One Rate® pricing will increase by an average of 3.5%.

UPS is increasing the rates for some of their services, and the first price increases were effective on December 24, 2017. There will be a second wave for packages that goes into effect on July 8, 2018. Below is an overview of rate changes for packages effective as of December 24, 2017. United Parcel Service (UPS) Rates Changed on Average 4.9% on 12/24/2017. (See below)

Some of the FedEx changes include: 

  • FedEx Express package and freight standard list rates will increase an average of 4.9% for U.S., U.S. export and U.S. import services.
  • FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9%.
  • FedEx will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost packages starting January 22.
  • Additional Handling Surcharge increases by one Dollar (9.1%) to $12
  • Address Corrections increase by one dollar (7.1%) to $15
  • Delivery Area Surcharges increase by $0.10 and $0.20 in most cases, depending on the service type
  • Residential Delivery Charge is up to $4.15, an increase of $0.30 (7.8%)
  • Oversized Charge increases by $7.50 (10.3%) to $80
  • 1lb. Ground Zone 2 increases by $0.33 to $7.58
  • A Third Party Billing Surcharge will apply to FedEx Express and FedEx Ground shipments that are billed to a third party

Some of the UPS changes include:

  • The rates for UPS® Ground, UPS Air and International services will increase an average net 4.9%.
  • 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.
  • 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.
  • The following changes will be effective July 8, 2018:
    • The Large Package Surcharge for any U.S. Domestic package delivered to a residential address will be $90.
    • The Additional Handling surcharge for any U.S. Domestic package exceeding 70 pounds in actual weight will be $19.00.