United Parcel Service announced their 2023 General Rate Increase taking effect December 27, 2022. Overall, UPS Ground, Air, and international rates, will increase an average of 6.9%.

However, there will be some key changes within the accessorial, fee, and surcharge categories. Shippers with larger packages will be in for quite a sticker shock. Most notably, domestic Additional Handling will see an average increase of 16.2% and Large Package Surcharge rates will incur an average increase of 19.2%.

In addition, there will be a new Remote Area Surcharge ($12) applied to select zip codes within the US. UPS Daily Base Freight rates are even higher than last year’s increase and will mirror that of FedEx’s 6.9% for 2023. SurePost rates have not yet been posted. We will let you know as soon as they become available.

As always it is important to keep in mind these increases are only service level averages. A Company’s unique characteristics and shipping patterns will determine the true impact. Let the pros at AFMS help you sift through these changes and assist you in mitigating these cost increases to your transportation budgets. 

Click here to read the full article and analysis.

Home Delivery DAS Surcharge Up 10.4%
Additional Handling Surcharge to exceed 21%

FedEx announced their 2023 General Rate Increase on September 22 nd to be Effective January 2, 2023. Overall, FedEx Ground, Home Delivery, Express, and WW International rates, will increase an average of 6.9%. An additional percentage point higher than 2022 increase of 5.9%. Accessorials, fees, and surcharges will see similar increases as last year with some products as high as 24%. Both Ground Economy (formerly known as SmartPost) and Ground Multi-Weight service increases have yet to be posted. We will update our clients as soon as information is made available.

FedEx rolling out complex “Peaking Factor”
​As of August 5th, FedEx has announced a new version of how they will calculate this year’s Peak Season
Surcharges. High volume shippers will continue to be the target, while application of these charges include both
U.S. Domestic Ground and Express services. Over and above a general “Peak Surcharge”, these new charges will
extend to Additional Handling, Oversize, Unauthorized and Residential packages. Changes will take effect
beginning September 5th.

AFMS is the leading transportation price benchmarking firm in North America and Europe with business intelligence analytics focused on reducing transportation costs through carrier contract negotiations and automated freight audit and recovery. AFMS specializes in benchmarking your freight rates to tell you exactly what market discounts and concessions you deserve with your current carrier.

See video from Automotive Logistics Conference.  

Freight pricing specialists AFMS, CEO Mike Erickson,  gives an inside track on best practices to negotiate best-in-class shipping rates with major carriers in North America and beyond. 
For a copy of the full video, please email info@afms.com or call 800-246-3521. ​

As part of it’s 10-year plan to achieve financial sustainability and service excellence, the United States Postal Service has filed notice with the Postal Regulatory Commission (PRC) of price changes for shipping products including Priority Mail and Priority Mail Express products to take effect Jan. 9, 2022.  See attached Press Release and Industry Alert.    

Effective March 26, 2020, we suspended the UPS® Service Guarantee for all shipments from any origin to any destination. For all U.S. origin shipments, the Service Guarantee suspension became effective as of March 24, 2020.
The UPS Service Guarantee has been reinstated for the following services only:

​The Service Guarantee remains suspended for all other UPS® shipments not specified in the above sections, from any origin to any destination.

As the effects of the Coronavirus impact our infrastructure, we will continue to seek guidance from local, state, and national government entities to ensure that we fully align with their regulations. We are committed to continue operating globally except where constrained by government restrictions.

Prior to shipping, please check to see if the recipient’s location is open, since many some businesses’ hours may have changed either due to local restrictions or at the business’s discretion. We will make three routine delivery attempts* before returning a package to the sender. Please continue to visit this site for the most up-to-date information regarding the impact of Coronavirus on UPS services.

*Where three routine delivery attempts do not coincide with a recipient’s adjusted (e.g., shortened, or weekend-only) business hours, the package will be returned to sender.

For your convenience, The UPS Store® and UPS Access Point® locations all provide access to your vital deliveries. Where available, you can sign up for free UPS My Choice which enables you to provide more specific delivery instructions such as where to leave deliveries, or redirect deliveries to another location, and also provides you with the ability to receive delivery notifications.
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Service guarantees are subject to change. For further details, see the UPS Tariff/Terms and Conditions.