Mhlnews 4714 Fedex Ups

LTL Rates Jump 4.9% Again at UPS and FedEx

Sept. 19, 2016
UPS and FedEx announce their annual rate increases, which includes a hike of 4.9% on LTL services.

There must be something magical about the number 4.9, because national less-than-truckload (LTL) carriers UPS Freight and FedEx Freight have both announced rate hikes in that amount—which just happens to be the same amount they hiked rates a year ago, and for that matter, the same amount from the year before that. Maybe it’s the psychology that the number looks smaller because it’s not quite 5%.

For UPS Freight, the 4.9% rate general rate increase took effect on September 19; rate hikes of the same percentage will go in effect on December 26 for UPS U.S. Ground daily rate; daily rates for UPS U.S. air and International services; and UPS Air Freight rates within and between the U.S., Canada and Puerto Rico.

According to a UPS spokesperson, the rate increases “will support ongoing expansion and capabilities enhancements” as the company continues to invest in its transportation network.

Meanwhile, FedEx Freight’s rate hike goes into effect on January 2, 2017. The rate hike of 4.9% applies to eligible FedEx Freight shipments within the U.S., between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico. Also effective January 2, the FedEx Freight Extreme Length surcharge will change from $85 to $150 and will be applied to shipments with dimensions of 12 feet or greater versus the prior 15 feet.

FedEx Ground and FedEx Home Delivery rates will also increase by 4.9%; however, those using FedEx Express will catch something of a break as the rate hike will be 3.9% for U.S. domestic, U.S. export and U.S. import services.

Typically, other national LTL carriers tend to follow suit with similar rate hikes of their own after UPS and FedEx have made their plans public, so stay tuned.

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