On October 16, 2023, UPS released their 2024 rates, detailing the 5.9% average increase announced last month. The increase by UPS mirrors that of FedEx in nearly every area.
Like FedEx, UPS claims a 5.9% average increase however many shippers will likely see higher increases. Below is further detail highlighting the specific increases.
Looking at domestic air service zone 2-8 and under 150 pounds each service is seeing over the advertised 5.9% increase. 3 Day will see the largest increase of all air services at 8.5%.
2024 Domestic Express Minimums and Percent Increase
The chart below shows the average increase by zone for each domestic air service. Next Day services will see a similar increase across all zones while 2 Day and 3 Day are seeing larger increases at longer zones.
The overall Ground increase in 2024 will be 6.2%—again above the advertised 5.9%. The Ground Minimum increase is 5.94%. The published 1 lb. zone 2 rate will go from $10.10 to $10.70. In 2023 1-5 lbs. shipments saw a substantial increase compared to the heavier weight shipments. In 2024 we will see just the opposite, as everything under 10 lbs. averages below the 5.9% advertised increase.
When looking at the average Ground increase by zone, only zones 2 and 3 will see an average increase below 5.9%.
UPS did not announce the increase to their full list of surcharges; however, they did provide the 2024 rates for the most common. Nearly all surcharge increases are above the 5.9% advertised increase with Additional Handling and Large Package being the largest at 18-21%.