The 2024 General Rate Increase Guide for UPS and FedEx

Another year, another increase. Businesses that rely on shipping have come to expect these increases every year as just a cost of doing business. And no one expects that either FedEx or UPS will suddenly decide to decrease their rates. So, while this year’s announced 5.9% increase was less than the record increases of the past few years, it would be easy to brush it off as less of an increase. The big two are still doing everything in their power to increase the amount of money they make from servicing your business.

Each year our data scientists undertake a massive modeling and simulation process that re-rates every package sent by our clients the previous year, based on their current agreements, to determine the actual average impact of the new rates and surcharges. This year, Reveel’s analysis found that in 2024 the average UPS customer will pay 7.72% and the average FedEx customer will pay 8.17%, instead of the announced rate of 5.9%.

That’s less than last year’s record increases, but it’s still a large increase - and a bigger impact on your profitability than either of the big two would lead you to believe.

That said, the fluctuations in business volume that each carrier experienced this past year as inflation and a decrease in consumer spending took hold means that each is very willing to negotiate contract terms. Put simply, they are looking to retain existing customers and capture new business, which is an opportunity for shippers.

In order to negotiate properly, however, you need information. The real-world shipping cost analysis and projections provided by Reveel’s Shipping Intelligence Platform can help shippers see exactly what impact new rates and surcharges will have on their bottom line - and where there is opportunity to negotiate. Don’t be fooled by other GRI analysis tools that use simple math to formulate the impact. Only Reveel builds a digital model of your unique carrier agreement and runs a simulation - right down to the package level - to give you the real impact.