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The two major national carriers will both increase rates by 6.9% next year. 


Effective Dec 27, 2022, UPS will be increasing rates for Ground, Air, and International shipping by an average of 6.9%. UPS will also be increasing its accessorial charges, as well as updating the list of zip codes affected by its Delivery Area Surcharges.  

Further, UPS is increasing late payment fees up to 8%, compared to 6% last year. This comes as carriers continue to tighten the reins on contractual payment terms.  

Among other changes, UPS is updating its Fuel Surcharge index for Standard services to Canada and Mexico. By changing the index that it uses to calculate fuel surcharges, UPS is able to raise fuel rates even when the national average fuel price remains flat. While this change will not affect most small parcel shippers’ profiles, it foreshadows future fuel index changes. Look for this change to come to domestic U.S. shipping rates in 2023. 

The fuel surcharge index is one of the sneakier methods carriers use to hide cost increases. One of the best tools in the fight against cost increases is to have a clear view into your transportation spend. It is important to know how FedEx’s and UPS’s rates are changing, but it is even more important to know how they impact your company. ConData has the tools to take your parcel spend and show you what these changes mean for your bottom line. 

ConData works with shippers every day, helping them manage their transportation spend. While this year’s GRI may represent the biggest year-over-year increase the parcel industry has ever seen, ConData continues to see success in helping our clients achieve meaningful savings through contract-negotiation projects and cost-mitigation strategies. 

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