UPS rates will increase by 5.9% on average for ground, air and international services starting Dec. 22, the parcel delivery giant announced on its website.
The change to UPS' listed daily rates matches the increase the carrier applied in 2023 and 2024, albeit with a slightly earlier timing at the tail end of the peak season shipping rush. Rival FedEx previously announced a 5.9% rate bump of its own, which will take effect in January.
The rate hike will help "support ongoing expansion and capability enhancements," the carrier said. The impact on customers will vary by shipping characteristics and the terms of their UPS contracts.
Additionally, UPS will increase the prices of various surcharges it applies to certain shipments on Dec. 22, including fees for residential deliveries, additional handling and deliveries to more remote locations.
Examples of UPS surcharges increasing on Dec. 22
| Surcharge | Current price | Price starting Dec. 22 |
|---|---|---|
| Additional handling (Zone 2, weight based) | $43.50 | $46.50 |
| Additional handling (Zones 3-4, dimension based) | $31 | $33.25 |
| Additional handling (Zones 7+, packaging based) | $31.50 | $33.75 |
| Delivery area (Ground residential) | $6.15 | $6.55 |
| Delivery area (Air commercial) | $4.20 | $4.50 |
| Residential surcharge (Ground) | $6.10 | $6.50 |
| Residential surcharge (Air) | $6.55 | $7 |
Source: UPS
Along with rate and surcharge increases, UPS plans to change which ZIP codes its area surcharges apply to starting Dec. 22. The carrier said it will also adjust the list of ZIP codes aligned to certain shipping zones.
The looming UPS rate and surcharge increases add to the pricing pressures parcel shippers have faced recently. A combination of pricier surcharges, waning discounts and added fees is keeping ground delivery costs elevated this year, per the TD Cowen/AFS Freight Index.
