UPS matches FedEx, DHL with 5.9% US rates hike for 2025

UPS will raise its US shipping rates for 2025 by 5.9%, matching the increases of top rivals FedEx and DHL Express.

The Atlanta-based parcels giant announced the increase, which will already take effect on December 23, 2024, on its US customer shipping information page along with other changes in rates and surcharges.

Supporting service enhancements

UPS announced: “Effective December 23, 2024, the Daily Rates for UPS® Ground, UPS Air and International services will increase an average net 5.9%.” The company noted: “The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.”

Explaining the reasons for the annual rates rise, UPS said: “This helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS. More detailed rate previews will be available at a later date.”

Other changes

In parallel, UPS announced other changes effective on or after January 27, 2025. The Large Package Surcharge (LPS) will be determined using revised calculations based either on length, weight or cubic volume of shipments.

In addition, for the Additional Handling Charge (AHC), the length plus girth definition for AHC will be replaced by a cubic volume definition to determine applicability of AHC. Other factors currently used to determine AHC applicability remain unchanged.

In another change, for invoices paid via credit card on or after October 26, 2024, an additional surcharge equal to 2% of the total amount paid will apply.

Identical increases

Like nearly every year, the annual increases for U.S. customers of the three big international express parcel companies are virtually identical. FedEx announced in mid-September that its package and freight standard list rates for U.S., U.S. export, and U.S. import services will increase by an average of 5.9% as of January 6, 2025.

DHL Express followed up at the end of last month by announcing a 5.9% general average shipment price increase for U.S. account holders on January 1, 2025. The company also noted that a limited number of services and surcharges will also be adjusted.

Peak demand surcharges

Meanwhile, both FedEx and UPS have imposed different demand surcharges in the US for this year’s peak season to cover additional operational costs.

FedEx’s surcharges cover overnight and two-day express delivery, FedEx Ground residential shipments and FedEx Home Delivery residential shipments along with an import surcharge for parcel and freight imports into the US from Hong Kong, China, and the Philippines.

UPS peak surcharges are about 10% higher or more compared to last year while there is also a separate “Surge Fee” for all shipments to the US from selected Asian markets, including China.

DHL Express has also announced a similar peak surcharge for international express shipments, effective from September 15.