Tuesday, 20 December 2016 16:40

Understanding the UPS and FedEx Rate Increases

Every year small package carriers FedEx and UPS evaluate their shipping rates and make adjustments that can have a substantial effect on you and your business. The UPS rate increases take effect on December 26, 2016, while the new FedEx rates take effect on January 2, 2017. As always, how much more expensive your particular small package shipments will be in the new year largely depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts:

  • FedEx Express and International rates are increasing an average of 3.9%
  • UPS Air and International rates are increasing an average of 4.9%
  • FedEx Ground and Home Delivery® rates are increasing an average of 4.9%
  • UPS Ground rates are increasing an average of 4.9%
  • The dimensional divisor for FedEx is changing from 166 to 139
  • FedEx SmartPost®, FedEx One Rate®, and UPS SurePost® rates will be changing

The important takeaway when thinking about your shipping expenses in 2017 is that the announced average increases paint an inaccurate picture of the true impact these new rates could have on your business. The shipping experts at PartnerShip® have dug into the details and analyzed the new rate tables to assess the true impact to shippers and help you make sense of these changes. Learn more about how the 2017 rate increases will affect your shipping costs by downloading the free white paper at PartnerShip.com/RateIncrease.

This tip is brought to you by PartnerShip, the company that manages the FRF Shipping Program. To enroll and receive exclusive discounts on select FedEx® services, visit PartnerShip.com/72frf. For more information, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 800-599-2902.

Published in Retail News

Basic Tip: If not controlled/reviewed, using your stores’ capabilities and resources to ship from the store is an easy way for an employee to move unpaid-for merchandise out of your store. To combat/deter this – review any and all shipments made from stores and cross reference them to employee address files, receipts of sales made and/or known addresses to ensure no fraud has taken place.

Advanced Tip: If shipping from your store is a shared responsibility amount employee, one warning sign of possible fraud is the consistent request or action of a single associate to complete the task. To combat/deter this – ensure multiple associates share the responsibility of shipping from your store to your customers or add an approval/sign off at the end of the process before pickup is made at the store.