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GRIs, DIM Changes, Surcharge Adjustments...Are You Ready for 2018

December 15, 2018

It’s typical for parcel carriers to announce changes to their pricing structures each year. These usually equate to a General Rate Increase (GRI) and include adjustments to surcharges and handling fees.

For the second year in a row, FedEx and UPS released changes beyond the expected adjustments. FedEx and UPS are the only major carriers to have announced these changes, but other carriers may follow with similar changes.

To help you prepare for 2018, we’ve gathered a comprehensive list of FedEx and UPS changes and the dates they will go into effect.

FedEx UPS
Dimensional Weight Calculation Changes Divisor will remain 139 for all packages less than or equal to 1,728 cubic inches.
Effective January 1, 2018
Divisor will remain 139 for all packages.
Effective January 1, 2018
Additional Handling Surcharge Changes Surcharge will change from $11.00 to $12.00.
Effective January 1, 2018
Effective December 24, 2017, the surcharge will increase by $1.15.
Effective July 8, 2018 the surcharge for any U.S. domestic package exceeding 70 lbs in actual weight will increase by $7.00.
Effective December 24, 2017 & July 8, 2018
Delivery Area Surcharge FedEx Ground for commercial shipping will increase from $2.45/package to $2.55/package.
FedEx U.S. Express package services and residential will change from $3.90/package to $4/package.
Effective January 1, 2018
Surcharge on daily rates will increase by $0.20. Surcharge on retail rates will increase by $0.10.
Effective December 24, 2017
Residential Surcharge Changes Surcharge for U.S. Express and U.S. International Ground will increase by $0.30.
Effective January 2, 2017
Surcharge for U.S. Ground and Standard to/from Canada and Mexico will increase by $0.20.
The surcharge for U.S. Air and International Air will increase by $0.15.
The surcharge for UPS Hundredweight Services® shipping will increase by $4.45 per shipment.
Effective December 24, 2017
 

FedEx General Rate Increase

The FedEx GRI will go into effect on January 1, 2018, and will be automatically adjusted within the Shipwire Platform.

  • FedEx Express package and freight standard list rates will increase by 4.9% on average for U.S., U.S. export and U.S. import services.
  • FedEx Ground and FedEx Home Delivery standard list rates will increase by 4.9% on average.
  • Effective Jan. 22, 2018, FedEx SmartPost will apply dimensional weight pricing with a dimensional weight divisor of 139 to all shipments. FedEx will also introduce per-pound rates for packages rated above 70 lbs. For more on SmartPost changes, click here.
  • For general FedEx rate increase information, click here.
 

UPS General Rate Increase

The UPS GRI will go into effect on December 24, 2017. However, these rates will not be adjusted within the Shipwire Platform until January 15, 2018.

  • The rates for UPS® Ground, UPS Air and International services will increase by 4.9% on average.
  • The Large Package Surcharge will apply to any U.S. domestic package with a length exceeding 96 inches, or if the length-plus-girth sum is greater than 130 inches.
  • The dimensional weight divisor for packages less than or equal to one cubic foot in size (1,728 cubic inches) will be 139. This applies to all U.S. domestic services subject to daily rates or Alaska and Hawaii Rates.
  • UPS SurePost rate increases. For packages 1 pound or more, the following criteria will result in an additional $2.50 charge per package:
    • Any package with one dimension measuring more than 34 inches and not exceeding 48 inches
    • Any package with any two dimensions each measuring more than 17 inches and not exceeding 30 inches
    • Any package weighing over 35 lb.
  • For more information about UPS rate increases, click here.
 

Erica Solis

Erica Solis is a Customer Marketing Manager at Ingram Micro Commerce & Fulfillment focusing on customer experience, demand generation and customer marketing processes & systems. She is a “Jane of all trades” and marketer at heart. Prior to Ingram Micro Commerce & Fulfillment, Erica spent a number of years marketing and developing startups in residential real-estate, fin-tech and healthcare industries.