An Update From PartnerShip on FedEx and UPS Rate Increases

Here, PartnerShip, an ABA business service affinity partner, offers details about new shipping rates going into effect for 2018. Earlier this year, PartnerShip provided an update on holiday shipping surcharges.

With the New Year approaching, it’s time to look at the UPS and FedEx rate increases for 2018 and how they will affect your costs. In September, FedEx announced an average increase of 4.9 percent on Express and Ground services. UPS joined the party in October, announcing that they will also be increasing their rates by an average of 4.9 percent. The new UPS rates will take effect on December 24, 2017, while FedEx will be instating them a week later, on January 1, 2018.

Here are some quick facts:

• FedEx Express, FedEx Ground, and FedEx Home Delivery rates will increase an average of 4.9 percent
• UPS Ground, UPS Air, and international rates will increase an average of 4.9 percent
• UPS is lowering the dimensional weight divisor to 139 for domestic packages less than or equal to one cubic foot in size (1,728 cubic inches)
• Surcharges for larger packages will rise sharply
• FedEx is adding a 2.5 percent third-party billing surcharge to match UPS
• Additional surcharges and increased rates will apply during the 2017 holiday season

The averages might be the same, but the rates vary. With higher increases for some services and lower increases for others, you can’t budget based on your costs increasing 4.9 percent. It’s important to look at what services you use, your package characteristics, and the locations you’re shipping to. You will need to evaluate the new rate charts, the surcharge increases, and other changes to find your biggest cost offenders.

You don’t have to navigate the 2018 FedEx and UPS rate changes alone. PartnerShip®, the company that manages the ABA Shipping Program, has evaluated the new rate charts and completed a detailed analysis, so it’s easier for ABA members to assess the impact on their shipping costs.

Download the free white paper at PartnerShip.com/RateIncrease.

ABA members receive exclusive discounts on select FedEx® services through the ABA Shipping Program. For more information or to enroll, visit PartnerShip online or call (800) 599-2902.