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Dear Parcel Shipper,
Over the past decade (2011 - 2021), UPS and FedEx ground tari� rates have increased 74.9% while air tari� rates have
increased 75.7%. As usual, these numbers do not take into account the accessorial increases or the impact of the
size-to-weight related charge changes both carriers have made.
How will the increased rates, surcharges and fees a�ect your profitability in 2021? Of course, the impact to you will vary
according to the characteristics that comprise your unique shipping profile (e.g. service level usage, zone density, billed vs
actual weight, etc.) and distribution model. If your business relies on UPS and FedEx, there’s a lot that can be done to push
back against growing shipping expenses. Create your free Lojistic account to quantify specific areas of overspend, then
use that information to take action. If you’d like to discuss strategies to help mitigate the rate increases, let’s chat.
Best wishes in 2021.
Cheers,
Jared Fisher
Executive Vice President
Lojistic
UPS
E�ective Date:December 27, 2020
Avg. Air Increase4.9%
Avg. Ground Increase4.9%
Lorem ipsum
FedEx
E�ective Date:January 4, 2021
Avg. Air Increase4.9%
Avg. Ground Increase4.9%
74.9%HAVE INCREASEDOVER THE PAST DECADE
GROUND SHIPPING RATES
75.7%HAVE INCREASEDOVER THE PAST DECADE
AIR SHIPPING RATES
* *
*combined UPS & FedEx average
2021 Carrier Rate Increase
AIR PRICE INCREASE YEAR TO YEAR
GROUND RESIDENTIAL FEE
GROUND PRICE INCREASE YEAR TO YEAR
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2011
$2.45
2012
$2.55
2013
$2.80
2014
$2.90
2015
$3.10
2016
$3.25
2017
$3.40
UP
S
$3.45
Fe
dE
x
2018
$3.60
UP
S
$3.60
Fe
dE
x
2019 2020 2021
$3.95
UP
S
$3.80
Fe
dE
x
$4.00
Fe
dE
x
$4.10
UP
S
$4.35
Fe
dE
x
$4.45
UP
S
Annual Carrier General Price Increase
UPSUPS FedEx FedEx
4.9% 2021 4.9% 20214.9% 2021 4.9% 2021
4.9% 2017 4.9% 2017
5.9% 2011
5.9% 2012
5.9% 2013
4.9% 2014
4.9% 2015
4.9% 2016
5.9% 2011
5.9% 2012
5.9% 2013
4.9% 2014
4.9% 2016
4.9% 2015
4.9% 2018 4.9% 2018
2017 20174.9% 3.9%
6.9% 2011
6.9% 2012
6.5% 2013
4.9% 2014
2016
4.9% 2015
5.9% 2011
5.9% 2012
5.9% 2013
3.9% 2014
2016
4.9% 2015
5.2% 4.9%
2018 20184.9% 4.9%
4.9% 2019 4.9% 20192019 20194.9% 4.9%
4.9% 2020 4.9% 20202020 20204.9% 4.9%
GROUND COMMERICAL MINIMUM CHARGE
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
GROUND RESIDENTIAL MINIMUM CHARGE (INCLUDES RESIDENTIAL FEE)
$14.00
$13.00
$12.00
$11.00
$10.00
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2011
$5.17
2012
$5.49
2013
$5.84
2014
$6.24
2015
$6.62
2016
$6.94
2017 2018
$7.32
UP
S
$7.25
Fe
dE
x
$7.57
UP
S
$7.58
Fe
dE
x
2011
$7.62
2012
$8.04
2013
$8.64
2014
$9.14
2015
$9.71
2016
$10.19
2017 2018
$10.72
UP
S
$10.70
Fe
dE
x
$11.17
UP
S
$11.18
Fe
dE
x
2019
$7.85
UP
S
$7.85
Fe
dE
x
$8.23
UP
S
$8.23
Fe
dE
x
$8.76
UP
S
$8.76
Fe
dE
x
2019
2020 2021
2020 2021
$11.80
UP
S
$11.65
Fe
dE
x
$12.33
UP
S
$12.23
Fe
dE
x$13.21
UP
S
$13.11
Fe
dE
x
Annual Carrier General Price Increase
2020 wasn’t such a bad year…if you happen to be UPS or FedEx. Despite rolling out several new mid-year surcharges,
eliminating a shipper’s ability to file for late shipments, and posting record profits, UPS and FedEx will raise their rates, once
again, for 2021.
The 2021 General Price Increase (GPI) is 4.9% for both UPS and FedEx and applies only to the weight/zone rates for their
Air, Ground and International services. The GPI will be made e�ective December 27, 2020 for UPS and January 4, 2021 for
FedEx.
The advertised 4.9% increase can be misleading, as it is an average. A shipper’s actual increase will vary according to
weight/zone characteristics and service levels used. Additionally, the 4.9% increase does not factor in the increases to all
accessorial surcharges, which are typically higher than the 4.9% average.
Here are some of the key takeaways from the 2021 GPI:
• Both carriers continue focusing on margin improvements for low weight shipments. What this means is that they are
applying the biggest increases to the lightest packages for most service levels.
• 2-day and 3-day services are taking larger increases.
• Longer zone Air services are taking larger increases than shorter zone Air services.
• Nearly all surcharges are increasing by more than 4.9%.
• Both carriers continue to penalize those who ship “undesirable” larger packages. For example, the Additional Handling
Weight Fee is increasing from $24 to $25.50. Both carriers have also announced that any package measuring greater
than 105 inches (length and girth combined) will be subject to the Additional Handling – Dimension Fee; which will
increase from $15 to $16.
• Both carriers are revising the ZIP code ranges for which their Delivery Area Surcharges (DAS) will be assessed; making
more ZIP codes eligible for DAS surcharges.
• Both carriers are keeping the published 139 dimensional weight factor consistent with 2020 and carrying it over into 2021
for domestic and international shipments.
• UPS is changing how they apply their Additional Handling and Large Package Surcharges:
- E�ective April 11, 2021, Additional Handling and Large Package Surcharges for non-hundredweight service
packages will di�er by zone.
- E�ective July 11, 2021, Additional Handling and Large Package Surcharges for hundredweight service packages
will di�er by zone.
• FedEx is following UPS’s lead in penalizing late payments by instituting a 6% late payment fee.
2021 Summary of Carrier Rate Increase
UPS Ground:
Ground rate increase announced at 4.9%. Important changes include:
• Ground Commercial Minimum Charge: Increase of $0.53 (6.4%) from $8.23 to $8.76
• Ground Residential Minimum Charge: Increase of $0.88 (7.1%) from $12.33 to $13.21
UPS Air & International:
Air & International rate increase announced at 4.9%
Surcharge & Accessorial Changes:
These changes apply to some of the more commonly seen surcharges and accessorial fees:
• Air Residential: Increase of $0.30 (6.4%) from $4.70 to $5.00
• Ground Residential: Increase of $0.35 (8.5%) from $4.10 to $4.45
• DAS Commercial Ground: Increase of $0.15 (5.1%) from $2.95 to $3.10
• DAS Commercial Air: Increase of $0.15 (4.8%) from $3.10 to $3.25
• DAS Commercial Ground Extended: Increase of $0.25 (7.2%) from $3.45 to $3.70
• DAS Commercial Air Extended: Increase of $0.25 (6.9%) from $3.60 to $3.85
• DAS Residential Ground: Increase of $0.30 (7.5%) from $4.00 to $4.30
• DAS Residential Air: Increase of $0.30 (6.8%) from $4.40 to $4.70
• DAS Residential Ground & Air Extended: Increase of $0.50 (9.3%) from $5.40 to $5.90
• Delivery Confirmation Signature Required: Increase of $0.30 (5.7%) from $5.25 to $5.55
• Delivery Confirmation Adult Signature Required: Increase of $0.35 (5.5%) from $6.35 to $6.70
• Address Correction Fee Increase of $1.00 (5.9%) from $17.00 to $18.00
• Additional Handling Surcharge (Weight): Increase of $1.50 (6.3%) from $24.00 to $25.50
• Additional Handling Surcharge (Length & Width): Increase of $1.00 (6.7%) from $15.00 to $16.00
• Large Package Surcharge (Commercial): Increase of $5.00 (5.0%) from $100.00 to $105.00
• Large Package Surcharge (Residential): Increase of $10.00 (8.3%) from $120.00 to $130.00
• Large Package Surcharge (International) Increase of $5.00 (5.0%) from $100.00 to $105.00
• Over Maximum Limits Charge: Increase of $45.00 (5.1%) from $875.00 to $920.00
UPS - E�ective December 27, 2020
2021 Summary of Carrier Rate Increase
FedEx Ground:
Ground rate increase announced at 4.9%. Important changes include:
• Ground Commercial Minimum Charge: Increase of $0.53 (6.4%) from $8.23 to $8.76
• Ground Residential Home Delivery Minimum Charge: Increase of $0.88 (7.2%) from $12.23 to $13.11
UPS Air & International:
Air & International rate increase announced at 4.9%
Surcharge & Accessorial Changes:
These changes apply to some of the more commonly seen surcharges and accessorial fees:
• Express & Ground Residential: Increase of $0.30 (6.5%) from $4.65 to $4.95
• Home Delivery Residential: Increase of $0.35 (8.8%) from $4.00 to $4.35
• DAS Commercial Express (includes Extended): Increase of $0.15 (4.8%) from $3.10 to $3.25
• DAS Commercial Ground (includes Extended): Increase of $0.15 (5.1%) from $2.95 to $3.10
• DAS Residential Express & Ground: Increase of $0.30 (6.8%) from $4.40 to $4.70
• DAS Residential Home Delivery: Increase of $0.30 (7.5%) from $4.00 to $4.30
• DAS Residential Extended (Express & Ground): Increase of $0.50 (9.3%) from $5.40 to $5.90
• Address Correction Fee: Increase of $1.00 (5.9%) from $17.00 to $18.00
• Additional Handling Surcharge (Dimensions): Increase of $1.00 (6.7%) from $15.00 to $16.00
• Additional Handling Surcharge (Weight): Increase of $1.50 (6.3%) from $24.00 to $25.50
• Ground Unauthorized Charge: Increase of $45.00 (5.1%) from $875.00 to $920.00
• Delivery Signature (Signature Required): Increase of $0.30 (5.7%) from $5.25 to $5.55
• Delivery Confirmation Adult Signature Required: Increase of $0.35 (5.5%) from $6.35 to $6.70
• Oversize Charge: Increase of $5.00 (5.0%) from $100.00 to $105.00
FedEx - E�ective January 4, 2021
2021 Summary of Carrier Rate Increase
FedEx - E�ective January 4, 2021
Annual Carrier General Price Increase
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