We’re excited to say that the team of experts at TransImpact is at it again this year and predicting the average GRI from FedEx® and UPS®.
Keep reading to find out how much your rates are going up. But first, here’s some background on what’s happening in the parcel shipping market and with the carriers that’s led to our prediction.
The following is an excerpt from our full report (downloadable below) that includes specifics on not just the top-level increases, but detailed predictions on major fees and accessorials, too.
“It’s not you; it’s them (the carriers, that is). Both small parcel carriers have to deal with many of the same challenges as other businesses. Generally high inflation, rising labor costs, and fluctuating fuel costs are all real pressures on their business operations.
There is a business shift happening that is at play for FedEx and UPS, as well. These higher operating costs are on top of several years spent investing in their delivery networks and efficiency, as well as a necessary adaptation to the market shift towards ecommerce and more residential deliveries. Both carriers have also stated that they are focused on future growth through ‘quality’ revenue.
Taken all together, it’s not hard to see where the carriers are likely heading with their 2023 GRIs.”
Our Prediction for the 2023 GRI
Unfortunately, the pieces are in place for another large GRI from FedEx and UPS in 2023. While factors like capacity (and even fuel) may be improving, inflation and labor costs are still a concern.
TransImpact predicts an average GRI from FedEx and UPS for 2023 of 6.1%, higher than last year’s 5.9% increase.
This high-level number is important, but as with all GRI announcements it’s the details that matter. To help you understand what you can expect and make the best of a bad situation, we’ve got the details behind the anticipated increases so you can strategize to avoid as many of them as possible.
We’ve added a few BOLD non-GRI predictions for 2023 at the end of the report that you’ll want to read.