Preparing for the 2019 GRI (General Rate Increase 2019)
There are very few sure things in life. Benjamin Franklin once famously said the only two were death and taxes. In business, one thing you can absolutely count on like clockwork is that shipping price increases near the end of the year.
Every year in the late third or beginning of the fourth quarter, the news drops about how much rates are going to go up from all of the carriers. It’s an unwelcome yearly occurrence, so familiar that it has its own term: the General Rate Increase or GRI for short. These rates increase year after year so carriers can meet the growing demand for shipping that has come with the boom of the e-commerce industry. In the last decade alone, FedEx’s volume has increased by 16.97%.
And these increases are not insubstantial. In 2018, depending on the service, some UPS rates went up anywhere from 3% to 6%. And that’s only the base freight rate. Surcharges also go up, often more than base freight, and more often, sometimes several times in one year. Combined, the base freight and surcharge increases can top 10% or more.
So what changes can e-commerce shippers expect for 2019? Here are the highlights of the annual rate and surcharge increases from the UPS, USPS, and FedEx:
UPS® General Rate Increase 2019
- UPS Ground, UPS Air and International services, and UPS Air Freight rates will increase an average net 4.9% effective December 26th, 2018.
- There will also be changes to UPS minimums and surcharges also effective on December 26th.
- UPS also announced Express and Ground minimum increases that range from 3.7% to 10.08%.
Trending GoBeyond.ai articles:
USPS® General Rate Increase 2019
- The USPS® GRI will take effect January 27, 2019 across all shipping services.
- Priority Mail Rates will increase for most packages by an average of 6.2% (3.9% average for International)
- One of the major changes for USPS rates is that First Class Package rates will be calculated based on Zones like Priority Mail is today. Zone 1 & 2 rates are the same as 2018’s overall rates and serves as a starting point for the other zones. This will experience an 11.9% average rate increase (3.9% average for International).
- Parcel Select Ground will actually have an average decrease in rates of 1.3%
FedEx® General Rate Increase 2019
- FedEx Express, FedEx Ground, FedEx Home Delivery®, FedEx SmartPost®, and FedEx Freight rates will increase on average 4.9% effective January 7th, 2018.
- There will be changes to FedEx surcharges and fees also effective on January 7th, 2018. The largest changes are related to packaging size and dimensions.
For more details on the 2019 General Rate Increases check out the carriers announcements:
2019 General Rate Increase Announcements:
- USPS General Rate Increase 2019
- UPS General Rate Increase 2019
- FedEx General Rate Increase 2019
- DHL General Rate Increase 2019
If you need assistance navigating the General Rate Increase, SnapShip can run an analysis based on your current shipment data and implement a strategy to mitigate the costs.
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