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What’s Next For Shippers – 2024 FedEx & UPS GRI Analysis

In true duopoly fashion, FedEx and UPS have announced the same GRI for 2024 at 5.9%. Down 1% from 2023’s 6.9% general rate increase.

Remember: The 5.9% average General Rate Increase is just that. General. An average of the rate increases across the board. So if you’re taking 5.9% and running with it for budgeting, it won’t be accurate.

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General Rate Increase Analysis

2024 UPS General Rate Increase (GRI) Details
  • Base UPS Rate Increases – Some express services are hovering in the 7% range – well over the 5.9% announced general rate increase average.
  • UPS Additional Handling & Large Packages – Domestic charges are zone-based for additional handling and large packages. Last year, these increases started at 13% and now they start at 18%
  • UPS Residential Delivery Surcharge – A key difference in FedEx and UPS GRI this year is in this category. UPS increased their residential surcharges/fees by 7.6% for Ground and 6% for Air. FedEx matched them on Air/Express® at 6%, but they only increased their Ground® Residential Fee by 1%. UPS is making it clear that Ground® residential packages aren’t efficient for them.
  • UPS Delivery Area Surcharges – UPS Delivery Area Surcharges (DAS) will increase at a minimum of 6.8% for Ground services and up to 5.5% for Air. DAS’s are billed based on which zip codes each package is delivered to. It’s one of those ‘destination-based’ charges, and while you can’t control where your customers want packages shipped, you can make some adjustments on your end to help lower the cost.

For further UPS GRI analysis, details, and examples, download the free report. Ready to take action? Schedule a quick demo.

2024 FedEx General Rate Increase (GRI) Details
  • Base FedEx Rate Increases – Some express services are hovering in the 7% range – well over the 5.9% announced average general rate increase.
  • Zone-Based Additional Handling & Oversize Surcharges – If you ship heavy packages, weight and dimensions-based fees are up as much as 21%. Zone-based charges to calculate additional handling and oversize fees are here to stay. And anything being shipped to zone 7+ or higher will get tacked with charges that pack an extra punch. Zones 7+ will see price increases of 20%. On average, the Additional Handling Surcharge is going up 19.6%. Oversize fees are up 19.6% for Express/Ground and 20.1% for Home Delivery.
  • FedEx Residential Delivery Surcharge – The average Residential Delivery Surcharge for FedEx Ground® is lower than the announced average at 1%. But Express shippers aren’t so lucky. They’ll see a 6% increase.
  • FedEx Delivery Area Surcharges – DAS fees for Express shippers are up 5.3%+. 7.5% for FedEx Ground®. The 2023 Delivery Area Surcharge Remote Fee® has a massive $14.25 price tag for Ground and Express. $71.25 for Maximum charge with Ground/Express Multiweight Pricing!

For further UPS GRI analysis, details, and examples, download the free report. Ready to take action? Schedule a quick demo.

How to Reduce Your Shipping Costs From the 2024 GRI

Sifted offers a variety of GRI Tools to help shippers respond to the general rate increase for UPS and FedEx. Start by downloading our free 2024 FedEx & UPS GRI Analysis.

Sifted Logistics Intelligence can model changes for you to help manage your landed costs after the 2024 general rate increases. Our dedicated GRI Dashboard helps you analyze exactly how the GRI increases will affect you. Ready to take action? Schedule a Free Analysis.

General Rate Increase Modeling & Decision Support

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GRI & Peak Season Analysis

Prep for rate increases.

FedEx & UPS rate increases are constantly headed your way. Getting ahead of their impact is key. Our GRI and peak season analysis helps you do just that. See how new rates will affect your business and avoid costly surprises down the road.

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