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All shipping carriers have annual rate increases that typically take effect in January of each year. FedEx and USPS shipping rates have both increased in 2019, and UPS has now followed suit. As of December 26, 2018, UPS increased rates by 4.9%. The UPS rate increase change impacted:

  • UPS Air Freight Rates
  • UPS Alaska and Hawaii Daily Package Rates
  • UPS Daily Package Rates including UPS Air, UPS Ground, and UPS International
  • UPS Hundredweight Service Package Rates
  • UPS Retail Package Rates including UPS Air, UPS Ground, and UPS International
  • UPS SurePost Rates
  • U.S. Origin UPS Express Freight Premium Direct Rates

While this increase happened late last year, you may just barely be feeling the effects depending on what and where you’re shipping. This is especially true when you learn that the 4.9% increase wasn’t the only change for shipping rates. In addition to the increases to base freight charges are additional handling fees, processing charges, and other extra costs. So, how do these excess fees affect your business?

General UPS Price Increase

First, let’s breakdown all of the new prices following the UPS price increase. While products shipped may vary from business to business, the type of shipping may be similar. You may be wondering why your shipping prices have increased lately and where these extra fees are originating from. It’s a valid question, so XPS is here make it easier:

  • UPS Ground, UPS Air, and International services increased an average of 4.9%
  • Fuel surcharges now apply to Additional Handling, Signature Requires, Adult Signature Required, and Over Maximum Limits
  • $2.00 processing fee per package if Package Level Detail (PLD) is not provided prior to delivery
  • $4.00 fee for Additional Handling on U.S. domestic packages exceeding 70 pounds
  • Value-added services and other charges also increased

You may be wondering how severely all the prices have changed. Here is a handy chart to navigate the new pricing.

Service 2018 Rate 2019 Rate Percentage Increase
Next Day Air $27.97 $29.47 5.36%
Next Day Air Saver $25.91 $27.32 5.44%
2 Day $17.69 $18.40 4.01%
3 Day $10.75 $11.23 4.47%
Ground $7.57 $7.85 3.70%
SurePost>1lb $7.74 $8.52 10.08%
SurePost<1lb $7.70 $8.46 9.87%
These may seem like small changes, but some surcharges increased by nearly 20% which is not something to brush off. Check out this breakdown of how much each surcharge has increased since the recent UPS rate increase.
Surcharge 2018 Rate 2019 Rate Percentage Increase
Delivery Area Surcharge, Commercial Ground $2.60 $2.80 7.69%
Delivery Area Surcharge, Commercial Air $2.75 $2.95 7.27%
Delivery Area Surcharge, Commercial Ground Extended $2.60 $2.80 7.69%
Delivery Area Surcharge, Commercial Air Extended $2.75 $2.95 7.27%
Delivery Area Surcharge, Residential Ground $3.50 $3.80 8.57%
Delivery Area Surcharge, Residential Ground Extended $4.45 $4.85 8.99%
Delivery Area Surcharge, Residential Air $4.05 $4.35 7.41%
Delivery Area Surcharge, Residential Air Extended $4.45 $4.85 8.99%
Residential Surcharge, Ground $3.60 $3.95 9.72%
Residential Surcharge, Air $4.15 $4.55 9.64%
Additional Handling, Weight (Over 70lbs.) $19.00 $23.00 21.05%
Additional Handling, Length $12.00 $14.25 18.75%
Additional Handling, Width $12.00 $14.25 18.75%
Additional Handling, Packaging $12.00 $14.25 18.75%
COD $13.50 $14.50 7.41%
Ground Weekly Pick Up (>$75/week) $12.50 $13.50 8.00%
Ground Weekly Pick Up (<$75/week) $25.00 $27.00 8.00%
Address Correction $15.90 $16.40 3.14%
Dry Ice $5.25 $5.55 5.71%
Large Package Surcharge, Commercial $80.00 $95.00 18.75%
Large Package Surcharge, Residential $90.00 $115.00 27.78%
Hazardous Materials Air, Accessible Goods $48.00 $53.00 10.42%
Hazardous Materials, Air, Inaccessible Goods $46.50 $49.00 5.38%
Hazardous Materials, Ground $33.00 $35.00 6.06%

Additional charges include:

Surcharge 2018 Rate 2019 Rate Percentage Increase
Delivery Confirmation Signature Required $4.75 $5.00 5.26%
Delivery Confirmation Signature Required Audit $5.75 $6.05 5.22%
Third Party Billing Fee 2.5% 4.5% 80.00%
Over Maximum Limits $500.00 $850.00 70.00%

How the UPS Rate Increase Affects You

The recent increase was expected to hit retail the hardest, and if you have an eCommerce or brick and mortar store, you’re probably feeling the effects. Adjusting to these fees is easier with XPS Ship’s UPS shipping software. We help you streamline your shipping efficiency and costs with our integrated features. Our tools provide transparency to the shipment process and are extremely important when combating rising shipping prices for any of the major carriers. XPS provides you with the most competitive rates and gives you access to all your shipping tools in one user-friendly platform. Contact us today to schedule a free demo and learn how XPS can help you through this recent price hike!