UPS just announced their 2025 General Rate Increase for Surepost parcels effective January 13, 2025.
In an unprecedented move, UPS has sent a clear message to the Ecommerce shipping community sending lightweight packages.
Surepost rates (1-9lbs) will incur a 9.9% increase, while (10-70lbs) will tack on an additional 6%.
Add in a whopping increase to both Delivery Area Surcharge of 61.8% ($3.80 to $6.15) and Delivery Area Surcharge Extended of 69.4% ($4.90 to $8.30) and it becomes clear…get ready for a Surepost rate “Tsunami” …
Strategic decisions need to be considered. Understanding your organization’s impact to the transportation budget, discussing carrier alternatives and negotiating contract terms need to be at the top of the list.
SUREPOST
Surepost (1-9lbs) core weight range will increase 9.9% over 2024, while Heavier weight packages (10-70lbs) will absorb smaller increases ranging from 5.9%-7.1%.
FUEL SURCHARGE INDEX
In addition, changes to both Ground and Surepost Fuel Surcharge indices will result in an effective increase ranging between 1.25%-1.5%. As a reminder, fuel is “adjusted” weekly depending on the US National average cost of a gallon of On-Highway Diesel as it relates to the index. As of today, the Ground/Surepost index falls in the $3.38-$3.50 range or 16.25%…under the new index…it would jump to 17.5%!
As always, details on Fuel index ranges and current effective applications can be found at www.UPS.com.
For over 30 years AFMS’s expert team of former carrier pricing executives and analysts from UPS, FedEx, DHL, USPS and the major LTL carriers, with over 500 years of combined industry experience, have helped more than 3,000 companies reduce their shipping costs by 10-25%. Specializing in transportation pricing benchmarking, carrier contract negotiations, full RFP and RFQ support for carrier optimization & invoice auditing of your parcel and LTL carriers.
For a No Cost rate impact analysis, please contact AFMS at (800) 246-3521 or email us at [email protected].
