Ecommerce Shipping BlogHoliday2022 UPS Rate Change: What You Need to Know

2022 UPS Rate Change: What You Need to Know

Posted on November 6, 2021 by

UPS’ shipping rates for 2022 were announced on November 5th and the rate increases 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 shipping 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 UPS air versus UPS ground shipping profile.

Shipping 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 changes prices for additional handling based on packaging, weight, and dimensions.

For more details on the UPS surcharges for specific services, you can download a PDF version from UPS. 

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

Fuel surcharges for U.S. UPS® Ground and Air services are increasing from their 10% and 11% rates. Both surcharges will see weekly adjustments, in accordance with the U.S. Gulf Coast Jet Fuel and Average On-Highway Diesel Fuel prices. A full breakdown of these costs can be found on the UPS website.

Additional 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. 

UPS also announced an update to its US Fuel Surcharges for Ground and Air services, effective November 15.

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.  

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