UPS Announces 2014 Rates for Air, Ground and International Parcel Products
Last week, UPS announced its 2014 general rate increase. Ground, air and international parcel products will increase an average of 4.9 percent, effective Dec. 30, 2013.
However, as it's historically done, UPS ground increases are higher at the lighter weights and less impacting at heavier weights (see chart below):
The 2014 ground minimum charge is $6.24, a 6.8 percent increase from 2013.
For years, the UPS "daily rates" were better than FedEx's list rates. However, with the 2014 rate increase, the UPS daily rates are now a lot closer with FedEx, especially for one-day to two-day service options. On the whole, UPS daily rates are still less expensive for three-day air than FedEx Express Saver, but it depends on weight and zone configurations.
Again in 2014, UPS "Standard Rates" will match FedEx's published rates.
UPS also announced increases to package surcharges and accessorial charges. To preview rates and review surcharge increases, visit http://rates.ups.com/surcharges.html.
FedEx's average 3.9 percent rate increase for express products takes effect Jan. 6, 2014, one week after the UPS increase. FedEx hasn't yet announced its 2014 ground and FedEx home delivery increases, but it's expected to match UPS within the next few days.
It's important to note that FedEx maintains a more favorable fuel surcharge threshold than UPS for both express and ground packages (at current fuel prices).
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.