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.
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)
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.