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 Large Package
The following illustration details the YoY percentage increase to the Large Package Surcharge by zone and service type. Shorter, low-zone shipments are facing larger increases compared to longer-zone shipments, with some going up by more than 20% (zones 2–4), but all charges will increase by at least 17%. Keep in mind, the LPS can go as high as $200 in 2023. Notable is that the surcharge was capped at $90 in 2018 and has increased by over 100% since.
FedEx Oversize
The following illustration details the YoY percentage increase for Oversize charges by zone. Shorter zones will face larger increases than longer zones, with zones 2 to 4 exceeding 20%. In 2018, Oversize surcharges were below $80. In 2023, these charges top out at $200 — an increase of 150% in only five years.
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).