How Much Are FedEx and UPS Residential Surcharges Increasing as a Result of the 2023 GRIs?

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 Residential The following illustration details the increase in Ground and Air Residential surcharges each year since 2020. Understandably, these increases are important to shippers in the growing ecommerce marketplace. Notable is a slightly smaller increase in the Ground Residential Surcharge in 2023 but greater increases for Air shipments. FedEx Residential The following illustration details the Residential surcharge amount and percentage increase for Home Delivery and Express from 2018 to 2023. Residential Home Delivery will rise more than 8% for the third year in a row and exceed $5.00 for the first time. Residential Express will also increase by over 8% in 2023. Notably, FedEx recently acknowledged on an earnings call that it was struggling with Express margins. 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).