Your 2017 Rate Change Overview

Your 2017 Rate Change Overview

Each year, as the major carriers announce rate changes, it becomes imperative for shippers to take a closer look at their practices, to reevaluate their carrier agreements, and to seek out room for improvement. As your comprehensive small parcel auditing solution and shipping contract experts, Intelligent Audit analyzes all pieces of the logistics puzzle in order to save our clients on shipping costs. This, of course, includes a line-by-line audit of rate changes that might affect your business in the coming fiscal year.

To that end, here is an overview of some of the biggest and potentially most consequential changes the major carriers have announced thus far for FY 2017. We begin by looking at these changes in broad percentage terms before zeroing in on some specific surcharge increases announced by the two major carriers.

Rate Percentage Increases

  • UPS U.S. Ground service will increase by an average net 4.9%
  • UPS U.S. Air and International services will increase by an average net 4.9%
  • UPS Air Freight rates within and between the U.S., Canada and Puerto Rico will increase by an average net 4.9%
  • UPS Freight service will increase by an average net 4.9%
  • FedEx Express will increase by an average of 3.9% for U.S. domestic, U.S. export, and U.S. import services
  • FedEx Ground and FedEx Home Delivery rates will increase by an average of 4.9%
  • FedEx Freight service will increase by an average of 4.9%

UPS Surcharge Increases (per http://rates.ups.com/index.html)

  • Additional Handling charge will increase $0.35.
  • Address Correction surcharge will increase $0.40.
  • Remote Area Surcharge applied to Alaska will increase $1.00, and for Hawaii will increase $0.25.
  • Charge for C.O.D will increase $0.40.
  • Charges for Delivery Confirmation Signature Required and Delivery Confirmation Adult Signature Required will increase $0.25.
  • Charges for UPS Delivery Intercept® request will increase $0.50 for requests made electronically and $0.70 for requests made by telephone.
  • Large Package Surcharge will increase $2.50.
  • Over Maximum Limits charge will increase $3.50.
  • Oversize Pallet Handling Surcharge will increase $3.50.
  • Residential Surcharge for U.S. UPS® Ground Service and UPS® Standard to/from Canada and UPS® Standard from Mexico shipments will increase $0.15.
  • Residential Surcharge for U.S. UPS Air Services and UPS International Air Services imported to the U.S. or destined for Canada and billed to a U.S. payer will increase $0.35.
  • Residential Surcharge for a UPS Hundredweight Service® shipments will increase $1.30 and the Residential Surcharge for UPS Worldwide Express Freight® shipments will increase $5.00.
  • Weekly charge assessed for Daily, Daily On-Route, and Day-Specific 4 Day Pickup service will increase $0.40 for customers with billing totals of $75.00 or more per week and $0.80 for customers with billing totals less than $75.00 per week.
  • Weekly charge assessed for Day-Specific 3 Day will increase $0.35 for customers with billing totals of $75.00 or more per week and $0.45 for customers with billing totals less than $75.00 per week.
  • Weekly charge assessed for UPS Smart Pickup®, Day-Specific 2 Day and Day-Specific 1 Day Pickup will increase $0.35.

FedEx Surcharge Increases (per http://www.fedex.com/us/shipping-rates/surcharges-and-fees.html)

  • Additional Handling Surcharge for U.S. express package services and U.S. and International ground services will increase $.50 per package
  • Additional Handling surcharge for U.S. express freight services will increase $10 per piece, skid or pallet
  • Address Correction surcharge for U.S. express package services; international express package and freight services; and U.S. and international ground services will increase $1.00 per correction
  • Address Correction Surcharge for U.S. express freight services will increase $4.30 per correction
  • Alaska and Hawaii Pickup or Delivery Surcharge for FedEx SameDay® will increase $50 per shipment
  • C.O.D. Surcharge for U.S. express package services will increase $.50 per package
  • C.O.D. Surcharge for U.S. express freight services will increase $2 per shipment
  • Delivery Signature Options Surcharge for Adult Signature Require, Direct Signature Required and Indirect Signature Required will increase $.25 per package/shipment
  • Metro Service Area Delivery and Pickup Surcharges for U.S. express freight services will increase $5 per shipment
  • Oversize Charges for U.S. express package services and U.S. and international ground services will increase $5 per package
  • Residential Delivery Charge for U.S. express package services and U.S. and international ground services will increase $.20 per package
  • Weekly Pickup Fee for Ground services will increase $.50 per week for customers with weekly shipping charges of $75 or more
  • Weekly Pickup Fee for Ground services will increase $1 per week for customers with weekly shipping charges of less than $75

These are just some of the many surcharge increases and rate changes already scheduled for 2017, and if recent history provides any indication of things to come, you can bet there will be more changes on the way. If you’d like help reviewing the above rate changes and determining how they’ll affect your business, contact Intelligent Audit and request a cost-free analysis.

Intelligent Audit provides its clients with a global, all-mode transportation audit, recovery, freight payment, and business intelligence reporting partner.

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