The following are key notes related to this analysis and the 2024 UPS SurePost GRI.
- This analysis is intended to highlight and compare notable points from the GRI announcement of UPS SurePost, a domestic-residential USPS-partner service that is among the slowest and cheapest UPS offers.
- The headline (a.k.a., “Average”) increases correlate with inflation. And while the increases are softer than in 2023, they are a historically high 5.9% average. Shippers should note that the surcharge increases listed below are NOT included in the headline/average increase.
- The effect of the SurePost increases will vary for shippers, with the ideal packages (those that are standard shapes and sizes and easiest for the carrier to handle) increasing by less than 5%. Surcharges, however, have increases of up to 20% from 2023.
UPS SurePost increase by year
The following illustrations highlight how the UPS 2024 SurePost GRI rate of increase is slightly higher than in 2022, but lower than 2023. As we’ve established in our other GRI analyses (FedEx vs. UPS 2024 GRI Comparison Analysis Report), the preceding years’ (2021 and 2023) rates of inflation were similar. Thus, the GRIs have been similar as well. Peak inflation in 2022 led to the historically high GRIs in 2023.
However, when we isolate the 2024 SurePost price increase between 1 and 9 lbs., the increase is notably less than in 2022. One reason could be that 1 to 9 lb. packages are the ideal fit for this slower, residential-only service offering. Shippers are very price sensitive and the competition is strong for this package volume. It’s also possible the carrier is using pricing, or lack of aggressive increases, to encourage volume shifts to this service.
UPS SurePost increase of zone types by weight
The following illustration compares short-zoned (smaller distances) and long-zoned (larger distances) prices to the overall average. Short-zoned prices include packages shipping in Zones 2-4, with long-zoned packages shipping in Zones 5-8. As in prior years, the price increases are less than 5% for shipments under 9 pounds, as these packages are easiest for the carriers to handle, and often, these types of shippers are very price sensitive. Additionally, the price increase for shorter zones is much lower than the overall average above 50 pounds. The longer-zoned price increase is the opposite, surpassing the average increase above 50 pounds.
UPS SurePost surcharge increases
SurePost maintains its own surcharges (different than other services such as GROUND or OVERNIGHT). Although one key benefit of SurePost is the lack of a Residential surcharge, these accessorial fees must be considered, as one “offending” package could offset any savings. Although smaller than 2023, this year’s increases are among the highest ever.
Notably, some surcharges have increased by 20%. In addition to the DAS fee increases, the Non-Machinable charge was discontinued, as UPS is choosing to focus its fees more granularly instead of imposing a blanket surcharge on bulky items.
Conclusion
The 2024 SurePost GRI is historically high at a 5.9% average, second only to last year’s all-time increase. And hidden in the increases are specific fees and surcharges going up by as much as 20%.
If you are interested in learning how using your parcel data can help you prevent many of these large surcharge increases from hitting your bottom line, check out our Parcel Spend Intelligence Solutions to learn what our technology and our experts can do to help. Or, email info@transimpact.com.