2019 General Rate Increases

Following the pattern from year’s past, the major carriers have implemented their General Rate Increases (“GRIs”) for 2019.

UPS GRI went into effect December 26, 2018 and affect UPS Ground, Air and International services with an increase of 4.9%. Additionally, they have increased the amount of shipments affected by added fuel surcharges as well as adding a processing fee when package level detail is missing from the shipment. You can find more information on the UPS website.

FedEx rate increases went into effect on January 7, 2019 and in line with UPS, they increased their FedEx Express, Ground and Home Delivery rates 4.9%. Additionally, their International, Ground Multi-weight and Smartpost rates increased. FedEx freight also went up 5.9% for specified zones and all retail rates went up, as well. You can find more information on the FedEx website.

The USPS GRI went into effect on January 27, 2019. The approximate increases combined, taking everything into considerations, equates to about 2.5% general increase. Priority Mail is going up by 5.9% and Priority Mail Express is going up 3.9%. The USPS will also be increasing stamp prices and other retail items such as flat rate boxes and envelopes. You can find more information on the USPS website.

As a final note, on January 1, 2019, DHL Express increased their international service rates by approximately 5.4%.

Rate increases occur yearly in part to allow the carriers to meet the increasing volumes and demands of consumers and retailers. UPS and FedEx continue to expand their service locations and technology capabilities while the USPS receives no tax dollars for operating expenses so they have to fund their own operations. If you have any questions about how this will affect your rates at TAGG, please contact your Client Service Representative.

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