www.supplychaindive.com Open in urlscan Pro
2606:4700:4400::6812:2911 Public Scan

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Submitted URL:
https://hello.easypost.com/api/mailings/click/PMRGSZBCHI4TGNRWFQRHK4TMEI5CE2DUORYHGORPF53XO5ZOON2XA4DMPFRWQYLJNZSGS5TFFZRW6...
Effective URL:
https://www.supplychaindive.com/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/
Submission: On January 03 via manual (January 3rd 2024, 12:25:09 pm UTC) from US — Scanned from DE

Form analysis
9 forms found in the DOM

Name: signup-inter-form — POST /signup/

<form id="signup-inter-form" class="form-basic" name="signup-inter-form" action="/signup/" method="POST">
  <input type="hidden" name="signup_box_location" value="interstitial">
  <input type="hidden" name="signup_initial_url_path" value="/news/shipping-lines-divert-ships-suez-canal-red-sea-cargo-ship-attacks/702824/">
  <h1> Don’t miss tomorrow’s supply chain industry news </h1>
  <p class="interstitial-text"> Let Supply Chain Dive’s free newsletter keep you informed, straight from your inbox. </p>
  <p class="form-error__message" id="interstitial-error"></p>
  <div id="form-interstitial">
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_a2b749_email">
    <div id="newsletter-list-section">
      <ul id="id_a2b749_site_newsletters" class="list-no-bullets">
        <li><label for="id_a2b749_site_newsletters_0"><input type="checkbox" name="site_newsletters" value="55" class="list-no-bullets" id="id_a2b749_site_newsletters_0"> Daily Dive <span class="secondary-label">M-F</span>
            <a class="xsmall signup-view-sample" href="/user_media/thumbnails/newsletter_lists/sc_2018.png" target="_blank">view sample</a>
            <p class="newsletter-description small">Topics covered: Logistics, freight, operations, procurement, regulations, technology, risk/resilience</p>
          </label>
        </li>
        <li><label for="id_a2b749_site_newsletters_1"><input type="checkbox" name="site_newsletters" value="326" class="list-no-bullets" id="id_a2b749_site_newsletters_1"> Operations Weekly <span class="secondary-label">Every Tuesday</span>
            <a class="xsmall signup-view-sample" href="/user_media/thumbnails/newsletter_lists/sc_operations_2018.png" target="_blank">view sample</a>
            <p class="newsletter-description small">Topics covered: S&amp;OP, inventory/demand planning, technology integration, DC/warehouse management</p>
          </label>
        </li>
        <li><label for="id_a2b749_site_newsletters_2"><input type="checkbox" name="site_newsletters" value="719" class="list-no-bullets" id="id_a2b749_site_newsletters_2"> Procurement Weekly <span class="secondary-label">Every Thursday</span>
            <p class="newsletter-description small">Topics covered: Supplier relationships, payments &amp; contracts, risk management, sustainability &amp; ethics, trade &amp; tariffs</p>
          </label>
        </li>
        <li><label for="id_a2b749_site_newsletters_3"><input type="checkbox" name="site_newsletters" value="2109" class="list-no-bullets" id="id_a2b749_site_newsletters_3"> Logistics Weekly <span class="secondary-label">Every Wednesday</span>
            <p class="newsletter-description small">Topics covered: Last mile, shipper-carrier relations, trends in rail, ocean, air, truck, and parcel shipping</p>
          </label>
        </li>
      </ul>
    </div>
    <div id="interstitial-consent-container">
      <input name="user_consent" value="1" id="id_user_consent" type="checkbox">
      <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
        <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
    </div>
  </div>
  <input id="signup-inter-submit" class="email_submit submit button" type="submit" data-role="none" value="Subscribe today">
</form>

GET /search/

<form action="/search/" method="GET" data-ajax="false">
  <label for="search-desktop">
    <span class="screen-reader-text search">Search</span>
  </label>
  <input id="search-desktop" type="search" name="q" placeholder="Search" data-role="none">
  <button type="submit" value="" data-role="none" class="search-button-front analytics t-search-navigation-drawer">
    <img src="/static/img/menu_icons/search.svg?320116291121" alt="search" height="16" width="16" loading="lazy">
  </button>
  <img class="close" src="/static/img/menu_icons/close.svg?273117231121" width="16" height="16" alt="close search" loading="lazy">
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST" target="_blank">
  <label for="id_49fb7_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_49fb7_email">
  </label>
  <input type="hidden" name="signup_box_location" value="inline">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_49fb7_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-inline-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-inline-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-inline-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-inline-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-inline" value="1" class="checkbox">
      <label for="id_user_consent-inline">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
    </li>
  </ul>
  <button class="button button--medium signup-button" type="submit" value="Sign up">Sign up</button>
  <label class="error email_error" style="display:none;">A valid email address is required.</label>
  <label class="error newsletter-error" style="display:none;">Please select at least one newsletter.</label>
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST" target="_blank">
  <label for="id_5e6678_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_5e6678_email">
  </label>
  <input type="hidden" name="signup_box_location" value="inline">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_5e6678_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-inline-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-inline-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-inline-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-inline-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-inline-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-inline" value="1" class="checkbox">
      <label for="id_user_consent-inline">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
    </li>
  </ul>
  <button class="button button--medium signup-button" type="submit" value="Sign up">Sign up</button>
  <label class="error email_error" style="display:none;">A valid email address is required.</label>
  <label class="error newsletter-error" style="display:none;">Please select at least one newsletter.</label>
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST">
  <label for="id_dbc057_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_dbc057_email">
  </label>
  <input type="hidden" name="signup_box_location" value="elevated_footer">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_dbc057_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-elevated_footer-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-elevated_footer" value="1" class="checkbox">
      <label for="id_user_consent-elevated_footer">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
    </li>
  </ul>
  <button class="button button--medium signup-button" type="submit" value="Sign up">Sign up</button>
  <label class="error email_error" style="display:none;">A valid email address is required.</label>
  <label class="error newsletter-error" style="display:none;">Please select at least one newsletter.</label>
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST">
  <label for="id_66a3ab_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_66a3ab_email">
  </label>
  <input type="hidden" name="signup_box_location" value="sidebar">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_66a3ab_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-sidebar-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-sidebar-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-sidebar-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-sidebar-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-sidebar-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-sidebar-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-sidebar-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-sidebar-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-sidebar" value="1" class="checkbox">
      <label for="id_user_consent-sidebar">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
    </li>
  </ul>
  <button class="button button--medium signup-button" type="submit" value="Sign up">Sign up</button>
  <label class="error email_error" style="display:none;">A valid email address is required.</label>
  <label class="error newsletter-error" style="display:none;">Please select at least one newsletter.</label>
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST">
  <label for="id_53aed6_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_53aed6_email">
  </label>
  <input type="hidden" name="signup_box_location" value="elevated_footer">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_53aed6_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-elevated_footer-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-elevated_footer-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-elevated_footer-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-elevated_footer" value="1" class="checkbox">
      <label for="id_user_consent-elevated_footer">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
    </li>
  </ul>
  <button class="button button--medium signup-button" type="submit" value="Sign up">Sign up</button>
  <label class="error email_error" style="display:none;">A valid email address is required.</label>
  <label class="error newsletter-error" style="display:none;">Please select at least one newsletter.</label>
</form>

GET /search/

<form action="/search/" method="GET" data-ajax="false">
  <label for="search-mobile">
    <span class="screen-reader-text">Search</span>
    <input id="search-mobile" type="search" name="q" placeholder="Search" data-role="none">
  </label>
  <button type="submit" value="" data-role="none" class="search-button-front analytics t-search-navigation-mobile">
    <img src="/static/img/menu_icons/search.svg?320116291121" width="15" height="15" alt="search">
  </button>
</form>

Name: signup — POST /signup/

<form class="form js-form-email-validate" name="signup" action="/signup/" method="POST">
  <label for="id_67dc12_email" class="email-input js-email-input">
    <span class="screen-reader-text">Email:</span>
    <input type="email" name="email" placeholder="Work email address" class="email" required="" id="id_67dc12_email">
  </label>
  <input type="hidden" name="signup_box_location" value="integrated_menu">
  <input type="hidden" name="signup_initial_url_path" value="/news/fedex-ups-2024-rate-increase-gri-what-shippers-should-know/699121/">
  <input type="hidden" name="js_enabled" value="1" id="id_67dc12_js_enabled">
  <ul class="signup-list list-no-bullets">
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-integrated_menu-checkbox-55" type="checkbox" name="site_newsletters" value="55" class="checkbox" checked="">
      <label for="newsletter-integrated_menu-checkbox-55">
        <span class="newsletter-title">Daily Dive</span>
        <span class="secondary-label">M-F</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-integrated_menu-checkbox-326" type="checkbox" name="site_newsletters" value="326" class="checkbox">
      <label for="newsletter-integrated_menu-checkbox-326">
        <span class="newsletter-title">Operations Weekly</span>
        <span class="secondary-label">Every Tuesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-integrated_menu-checkbox-719" type="checkbox" name="site_newsletters" value="719" class="checkbox">
      <label for="newsletter-integrated_menu-checkbox-719">
        <span class="newsletter-title">Procurement Weekly</span>
        <span class="secondary-label">Every Thursday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select Newsletter:</span></label>
      <input id="newsletter-integrated_menu-checkbox-2109" type="checkbox" name="site_newsletters" value="2109" class="checkbox">
      <label for="newsletter-integrated_menu-checkbox-2109">
        <span class="newsletter-title">Logistics Weekly</span>
        <span class="secondary-label">Every Wednesday</span>
      </label>
    </li>
    <li>
      <label><span class="screen-reader-text">Select user consent:</span></label>
      <input type="checkbox" name="user_consent" id="id_user_consent-integrated_menu" value="1" class="checkbox">
      <label for="id_user_consent-integrated_menu">
        <span class="signup-user-consent_box">
          <span> By signing up to receive our newsletter, you agree to our <a href="https://www.industrydive.com/terms-of-use/" target="_blank">Terms of Use</a> and
            <a href="https://www.industrydive.com/privacy-policy/" target="_blank">Privacy Policy</a>. You can unsubscribe at anytime. </span>
        </span>
      </label>
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An article from
Deep Dive


FEDEX, UPS 2024 RATE INCREASES: WHAT SHIPPERS SHOULD KNOW

The variances within the carriers’ price hikes indicate what services are seeing
the most pressure from competitors, experts say.

Published Nov. 8, 2023
Max Garland Senior Reporter
 * 
 * 
 * 
 * 
 * 


A UPS worker delivers packages on December 26, 2013 in Chicago, Illinois. Parcel
spend experts say FedEx and UPS’ annual rate increases unsurprisingly mirror
each other, even beyond the 5.9% average. Scott Olson/Getty Images via Getty
Images
Listen to the article 7 min
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The parcel delivery market may be swinging in shippers’ favor, but UPS and FedEx
customers will still have to contend with rate increases for 2024.

The delivery giants announced a 5.9% average rate increase on their various
shipping services that will take effect on Dec. 26 for UPS and Jan. 1 for FedEx.
It’s a smaller increase than the 6.9% bump both unveiled for 2023 as they
contend with declining demand.

FedEx and UPS have since released the full details of these rate increases and
accompanying surcharges. Parcel spend experts say the rivals unsurprisingly
mirror each other’s changes even beyond the 5.9% average.

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Rising costs and market volatility have led retailers to adapt to adversity. A
selection of stories shows how.

Read on to find out what shipment types will see the largest rate increases,
what it suggests about the carriers’ evolving strategies and how shippers can
minimize the impact of higher delivery costs.


INCREASES TARGET EXPEDITED, LONG-DISTANCE DELIVERIES

The 5.9% rate hike at FedEx and UPS is only an average. The actual increases
shippers will encounter vary depending on each delivery’s shipping
characteristics. These include:

 * Distance traveled: Shipments moved over longer distances, which the carriers
   measure by “zones”, will encounter sharper rate increases than those being
   delivered to a closer location. For FedEx, ground and air deliveries in zones
   2-4 will see an average increase of 5.91%, while those in zones 5-8 will see
   a 6.39% average increase, according to an analysis from LJM Group. UPS has
   similar discrepancies.
 * Package weight: Heavier packages will generally see greater shipping rate
   increases compared to lightweight parcels at both FedEx and UPS. For example,
   shipments weighing 1 to 5 pounds will see a rate increase of 5.5% for
   commercial ground services at both FedEx and UPS, according to a Shipware
   analysis. But packages weighing 11 pounds or more will see rates jump by at
   least 6%.
 * Service used: Packages delivered by faster shipping services will generally
   see price increases above the 5.9% average. A Shipware analysis shows rates
   for minimum charges that FedEx and UPS levy for their air cargo services
   versus slower ground transportation offerings.

OVERNIGHT SERVICES SEE THE HIGHEST RATE HIKES

FedEx service Increase to minimum charge Priority Overnight 7.88% Standard
Overnight 7.5% 2Day 5.49% Express Saver 4.47% Ground/Home Delivery 5.94% UPS
service   Next Day Air 7.91% Next Day Air Saver 7.51% 2 Day 5.48% 3 Day Select
4.52% Ground 5.94%

Source: Shipware analysis. Note: UPS’ increases take effect Dec. 26, 2023.
FedEx’s increases take effect Jan. 1, 2024.

Shippers should also consider any surcharges that apply to their shipments,
which aren’t factored into the carriers’ base rates but will also see increases
for 2024. Added fees that FedEx and UPS levy include charges for large and
oversized goods, packages that require additional handling and deliveries to
remote locations.

AFS Logistics Chief Analytics Officer Mingshu Bates said UPS is adjusting which
ZIP codes it considers rural or remote areas of the U.S., which comes with an
added delivery fee for shippers.

How UPS classifies these ZIP codes has a marked impact on a package’s shipping
cost. Delivery area surcharges for 2024 will range between $3.95 and $7.70,
while remote area surcharges will cost $14.15 in all states except for Alaska.

“If you happen to shift to one of those fortunate or unfortunate ZIP codes,
you’re going to see a huge difference,” Bates said.


FEDEX AND UPS ADJUST TO COMPETITION

The variances within rate hikes indicate what shipment types FedEx and UPS face
greater competition for.

There are plenty of alternative carriers serving specific regions that shippers
can use for shorter-distance deliveries, and these companies continue to expand
their coverage areas and capacity.

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Trendline


DRIVING SUPPLY CHAIN SUSTAINABILITY

Amid pressure from consumers, investors and governments, companies are
scrambling to measure and reduce the impact of their supply chains on the world.

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“I think that speaks to them feeling a little bit more of a competition from
regional carriers than they’re willing to admit,” said Paul Yaussy, a senior
consultant of professional services at Shipware.

FedEx and UPS also have competition for lightweight packages that don’t require
expedited delivery, even at longer distances. Amazon Shipping is touting lower
shipping prices than what shippers can expect from the parcel delivery giants.

“We have some of our clients getting some offers from Amazon Shipping, and the
offers are pretty aggressive,” Yaussy said. “We’ve seen that their service guide
is very, very similar to those that FedEx and UPS have.”

Competition is less heated for longer-distance and heavier shipments using
expedited services, allowing FedEx and UPS to impose higher rate increases
without dissuading too many shippers. These shipments are also more expensive
for carriers pushing to reduce operating costs and increase efficiencies.


HOW SHIPPERS CAN REDUCE RATE HIKES’ STING

Despite the rate hikes, shippers are in a prime position to negotiate better
contract terms as delivery demand remains soft. Parcel carriers are offering up
more robust discounts to secure volume, benefiting customers like Macy’s and
Rent the Runway.

A key for shippers in negotiations is to make sure they understand their biggest
strengths as a customer that could lead to reduced charges, said Nicholas
Fanelli, managing director of Shippingwise.

“Do you have multiple packages shipping from the origin to the same destination
on the same day? In that case, you have a strong argument to be negotiating
certain surcharges, like the fuel surcharge or residential surcharge, because
they’re already going there,” Fanelli said.

Companies should also consider what they can adjust internally to avoid
unnecessary shipping costs, experts told Supply Chain Dive.

Keep up with the story. Subscribe to the Supply Chain Dive free daily newsletter

Email:
 * Select Newsletter: Daily Dive M-F
 * Select Newsletter: Operations Weekly Every Tuesday
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READ MORE IN LOGISTICS


Jan 02, 2024
UPS plans reduced sorting operations, layoffs at Louisville hub
Dec 22, 2023
Suez Canal at risk: What shippers should know to mitigate disruption
Dec 22, 2023
FedEx redesigns air network to boost speed, profits
Dec 20, 2023
Shippers consider alternatives after rail border closures
Dec 20, 2023
Hub Group acquires Forward Air’s final mile business for $262M
Dec 20, 2023
Amazon’s logistics, delivery services expanded beyond its website in 2023
Dec 18, 2023
Rail border crossings reopen at Eagle Pass and El Paso, Texas
Dec 18, 2023
Shipping lines avoid Suez Canal as Red Sea attacks continue
Want to see more stories in Logistics?
Read More ➔

This could include exploring ways to put products in less bulky packaging or
splitting a large item into two individual shipments to avoid surcharges.
Shippers may also opt for less expensive ground transportation for more
time-sensitive deliveries if the destination is close enough to the shipment’s
origin.

Carriers welcome these types of adjustments from customers, as it makes their
volume easier to handle, said Kevin Miller, VP of data insights at logistics
software provider Sifted.

“[Carriers] can give you suggestions as well on how to improve your network to
help them be more efficient,” Miller said. “By doing so, it will save both
companies money.”

Editor’s note: This story was first published in our Logistics Weekly
newsletter. Sign up here.


RECOMMENDED READING

 * FedEx to hike Express, Ground shipping rates by 5.9% in 2024 By Max Garland •
   Aug. 29, 2023
 * UPS unveils 5.9% shipping rate increase, higher peak season surcharges By Max
   Garland • Sept. 8, 2023

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EDITORS’ PICKS

 * Drew Angerer via Getty Images
   
   
   WHITE HOUSE CREATES CABINET-LEVEL SUPPLY CHAIN COUNCIL
   
   After years of focusing on supply chains’ role in the economy, President Joe
   Biden is expanding high-level meetings on the topic.
   
   By Edwin Lopez • Nov. 27, 2023
 * Joe Raedle/Getty Images via Getty Images
   
   
   GROUND PARCEL DELIVERY COSTS FALL AS CARRIERS OFFER UP DISCOUNTS
   
   The pricing environment has shifted in favor of shippers with demand cooling
   off, according to the TD Cowen/AFS Freight Index.
   
   By Max Garland • Oct. 31, 2023

Access now➔

Trendline


DRIVING SUPPLY CHAIN SUSTAINABILITY

Amid pressure from consumers, investors and governments, companies are
scrambling to measure and reduce the impact of their supply chains on the world.


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COMPANY ANNOUNCEMENTS

View all | Post a press release
First In Line: FreightWise Celebrates Kuebix’s First New Client Win Post
Acquisition
From FreightWise
December 18, 2023
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From Tai Software
December 14, 2023
Flowspace Elevates Karen Chao to Chief Product Officer; Celebrates 2023 Awards
and Accolades
From Flowspace
December 13, 2023
VODAFONE, SUMITOMO CORPORATION, DELOITTE AND NEXXIOT JOIN FORCES TO SUPPORT
AUTONOMOUS FREIGH…
From Nexxiot
December 14, 2023
Editors’ picks
 * Drew Angerer via Getty Images
   
   
   WHITE HOUSE CREATES CABINET-LEVEL SUPPLY CHAIN COUNCIL
   
   After years of focusing on supply chains’ role in the economy, President Joe
   Biden is expanding high-level meetings on the topic.
   
   By Edwin Lopez • Nov. 27, 2023
 * Joe Raedle/Getty Images via Getty Images
   
   
   GROUND PARCEL DELIVERY COSTS FALL AS CARRIERS OFFER UP DISCOUNTS
   
   The pricing environment has shifted in favor of shippers with demand cooling
   off, according to the TD Cowen/AFS Freight Index.
   
   By Max Garland • Oct. 31, 2023

Latest in Logistics
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 * Shippers consider alternatives after rail border closures
   By Larry Avila

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