9/11/23 Parcel News Update

by Grayson Gilbert

Sep 11, 2023

2 min read

1. FedEx Releases 2024 GRI

After previewing a 5.9% GRI, FedEx released the full details of their 2024 rate increases last week. According to Sifted VP of Data of Insights Kevin Miller, most increases seem relatively “normal,” but FedEx continues to target large packages with steep increases, sending a clear message that they prefer the most profitable, easily-conveyable shipments.

Additional Handling Surcharge: Up ~$5 or 19.5% from 2023
Oversize Charge: Up $30 or 18.5% from 2023

Sifted will soon release a full analysis of FedEx’s GRI.

FedEx 2024 GRI Page

2. UPS Follows FedEx, Previews 5.9% GRI and Releases Demand Surcharges

Much like FedEx previewed a 5.9% average rate increase weeks ahead of the full GRI release, UPS has announced a preview of their 2024 increases, matching FedEx’s 5.9% average. The new rates will go into effect December 26, 2023.

Unlike, FedEx, however, they did not provide a date when full rate and surcharge increases will be published.

UPS also released peak season Demand Surcharges, which were slightly higher than those of FedEx.

UPS Demand Surcharges will apply to shippers sending over 20,000 packages per week, and will be in effect from October through January.

Large packages are being hit particularly hard:

Additional Handling: $6.90 (up from $6.50 last year)
Large Package: $74.90 (up from $70 last year)
Over Maximum: $410 (up from $400 last year)

View all of UPS’ 2024 Demand Surcharges.

Article from Mark Solomon, FreightWaves

3. UPS Gains FAA Exemption, Allowed to Operate Drones Beyond Line of Sight

The Federal Aviation Administration (FAA) has granted UPS an exemption from regulations restricting drone operations beyond a visual line of sight, opening a critical door for UPS to scale drone delivery operations.

UPS Flight Forward, their drone-focused subsidiary, can adjust operations, which have required multiple visual observers in the past, for greater scale. Drones can now be operated from a remote operations center in Kentucky. Flights will operate in Florida, North Carolina, Ohio, and potentially more states in the future.

Article from Max Garland, Supply Chain Dive

Grayson Gilbert

Grayson is the Marketing Specialist at Sifted. He leads our earned media efforts, podcast production, and review generation, all the while tracking industry news for our team and clients. His media relations skills have landed Sifted’s thought leaders in top publications like FreightWaves, Supply Chain Dive, PARCEL Magazine, and Yahoo! Finance. Connect with Grayson on LinkedIn here.

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