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Ground is the most important service level for many shippers. The amount of increase companies will face from the FedEx and UPS 2023 GRIs will vary greatly depending on weights and zones, despite the headline average GRI increase of 6.9%. Below you’ll find excerpts from our recently published GRI reports that detail what changes shippers can expect for Ground rates. By the way, you can read our full reports on each carrier’s GRI with tips on what you can do to mitigate the 2023 increases here: Breaking Down the 2023 UPS GRI – Is This What Better and Bolder” Looks Like? Brace Yourself: FedEx Comes Strong at Shippers with Its 2023 General Rate Increase So, how much are UPS and FedEx increasing Ground rates? UPS Ground The following illustration details the overall Ground YoY percentage increase by weight, categorized by long (zones 5–8) and short zones (zones 2–4). Note that all zones will increase a minimum of 5.5%. Overall, UPS is focusing the increases to drive more revenue on packages that weigh more than 25 lbs. and travel long distances in its network. The increase for longer-zone shipments is up to 8% on packages over 25 lbs. The average increase for zones 2–4 is 6.3%, and 7.7% for zones 5–8. FedEx Ground The following illustration shows the overall YoY percentage increase by weight, categorized by long and short zones, for Ground. Notable is that regardless of weight, the increase is at least 5.5%. In other words, by implementing increases of up to 8% FedEx is looking to drive more revenue on packages that weigh more than 25 lbs. and are traveling longer distances. Contact TransImpact (info@transimpact.com) to receive a no-obligation report detailing how much your costs will go up starting December 27, 2022, under the 2023 UPS and FedEx GRIs (along with all the other fees and surcharges in place right now).
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