UPS announced their 2022 rate change on November 5th and the rate increase will go into effect on November 14th. The announced rate increase of an average net 5.9% can mean different things to you as a shipper based on your shipment profile. This average rate increase matches rate adjustments already announced by rival carriers FedEx and DHL.
As in every general rate increase announcement, the year over year increase is introduced as an average net increase as a percentage. Based on your shipping profile, however, this increase can mean more to you based on your specific air versus ground shipping profile.
Surcharges are increasing at a faster rate than transportation services. As a rule, many surcharges tend to increase at a rate faster than the rate of transportation. Many factors influence these changes, such as the costs of delivery and new technologies. Much like their competitors, UPS is increasing the costs for additional handling based on packaging, weight, and dimensions.
2021/2022 UPS Rate Changes
2022 UPS Daily Package Rates
As of January 9, 2022, the carrier will also be renaming “Peak Surcharges” to “Peak/Demand Surcharges” and adjusting the Zip Codes for which Area Surcharges will apply.
Domestic U.S. Shipments
Peak surcharges for all domestic U.S. shipments are going to change. The increase of the surcharge will be dependent on the service.
Fuel surcharges for U.S. UPS® Ground and Air services will also be changing from their current 10% and 11% rates. Both surcharges will be adjusted weekly, in accordance with the U.S. Gulf Coast Jet Fuel and Average On-Highway Diesel Fuel prices. You can find a list of the current charges on UPS’s website.
Other UPS Adjustments
All UPS rates will be increasing for 2022, and this change will officially begin on December 26, 2021. UPS® Ground, UPS Air, and International services are going to see an increase of an average of 5.9%. The UPS Air Freight rates will also see an increase of an average of 5.2% for those shipments going within/between the U.S., Canada, and Puerto Rico.
Along with this price increase announcement, UPS also announced an update to its US Fuel Surcharges for Ground and Air services, effective November 15.
And shippers should not forget about applicable Peak Surcharges, some of which are already in effect for this holiday season.
What Does This Mean For You As a Merchant?
As always, it is critically important to evaluate your own shipping habits to ensure that you are using the right services for you to reach your customers. An emphasis on the delivery objective itself and your buyer’s needs for shipment delivery and visibility will help to ensure you are using the right carrier services to satisfy the right needs. Accurately measuring your packages and reducing unnecessary space has become a critical factor in shipping cost management. Lastly, communication with your carrier is more important than ever to discuss your customer’s delivery needs and match them with the right carrier service offering.