Instead, they plan to use rate increases to offset volume declines and ensure revenue growth goals are met. With reports of excess capacity in all parcel networks, one would think carriers might use GRI announcements as a mechanism to acquire customers. While it was unfortunately predictable, increasing the 2023 GRI by another full point still comes as a shock as shippers grapple with a potential worldwide recession. That one-point increase was a jolt to the industry, especially considering their customers’ pandemic-fueled struggles and UPS’s already record-setting profits. For nearly a decade, the carriers set their annual increase at 4.9%, but broke that trend for 2022 and announced 5.9%. UPS waited four full weeks to announce its 2023 GRI, and to no one’s surprise it matched FedEx at 6.9%.

UPS matches FedEx and sets an all-time high GRI While it’s impossible to analyze every change, below are some important takeaways for all shippers to note and assess:ġ. It’s important you understand how base rate and surcharge increases will impact your 2023 UPS spend. While the FedEx increases are effective January 3, 2023, the new UPS rates will go into effect a week earlier on December 27, 2022.Īs is always the case with carrier GRI, and noted with an asterisk at the bottom of the announcement, “the impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.” Translated, very few shippers will realize an increase equivalent to 6.9% most will be higher. Matching rival FedEx’s September announcement, UPS has revealed its 2023 General Rate Increase (GRI) will also set an all-time high of 6.9%. Editor's Note: This article was updated on 10/28/22 to reflect a correction to 3 Day Select Rates and the Large Package International Fee

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