PartnerShip® Explains 2018 FedEx and UPS Rate Increases

DECEMBER 14, 2017

The 2018 FedEx and UPS rate increases are proof that the carriers are getting smarter, hitting shippers where it hurts most. Luckily, you don’t have to navigate the changes alone. PartnerShip®, the company that manages the ILMA Shipping Program, has evaluated the new rate charts and completed a detailed analysis, so it’s easier for ILMA Members to assess the impact on their shipping costs. 

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  • FedEx Express, FedEx Ground, and FedEx Home Delivery rates will increase an average of 4.9%, effective January 1, 2018.
  • UPS Ground, UPS Air, and international rates will increase an average of 4.9%, effective December 24, 2017.
  • UPS is lowering the dimensional weight divisor to 139 for domestic packages less than or equal to one cubic foot in size (1,728 cubic inches).
  • Surcharges for larger packages will rise sharply.
  • FedEx is adding a 2.5% third party billing surcharge to match UPS. 
  • Additional surcharges and increased rates will apply during the 2017 holiday season.
The averages might be the same, but the rates vary. With higher increases for some services and lower increases for others, you can’t budget based on your costs increasing 4.9%. It’s important to look at what services you use, your package characteristics, and the locations you’re shipping to. You will need to evaluate the new rate charts, the surcharge increases, and other changes to find your biggest cost offenders.

When you enroll in the ILMA Shipping Program, you receive exclusive discounts on select FedEx® services – helping to offset the 2018 rate increases.

For more information or to enroll today, visit online or call 800-599-2902.