December 2021 - Audintel

Main takeaways from the UPS General Rate Increase of 2022

UPS General Rate Increase for 2022 will affect businesses. So, know the new surcharges announced by UPS. Further, find out how to minimize shipping costs.

It’s that time of the year again! The time when different parcel carriers announce an increase in their shipping rates. Incidentally, UPS has announced its General Rate Increase (GRI) some time back. In addition, UPS has also made changes in surcharges and fees. This article will explore UPS GRI, new changes, and its impact on businesses. Also, we will discuss the ways to minimize the overall shipping costs due to UPS GRI.

What’s new in UPS GRI 2022?

Shipping carriers like UPS announce their annual General Rate Increase. According to the UPS notification, UPS GRI will be effective from December 26, 2021. There is an increase in shipping rates for UPS ground, air, and international services to around 5.9%. Parameters like the weight of the packages, zones, and zip codes are part of the rate increase. Some of the UPS services like:

UPS SurePost services
UPS 3 Day Select services
UPS Next Day Air Services

seems to show a marked increase in shipping rates.

In addition to the rate increase, there have been changes in surcharges too.

Changes in accessorial fees and surcharges

UPS GRI does not include the fees and surcharges which have seen an increase. The surcharges include:

Peak Surcharge

It is also known as a demand surcharge. When the demand for shipments is more at the peak time of the year, UPS charges more. But, for 2022, a peak surcharge has been introduced for international packages shipped to and from the United States. The shipped packages will be charged based on the weight and at different service levels. In addition, this surcharge also applies to UPS domestic shipments such as UPS® Air Residential, UPS® Ground Residential, and UPS SurePost® Packages.

Value-added Services and other charges

UPS has increased the charges for additional handling of packages based on weight and dimensions. In addition, large package surcharges are also rising in 2022. On the other hand, minimum charges for packages between 1 and 5 lbs are also set to rise. Further, shipments to remote areas will see an upward rise under US48 Remote Area Surcharge (RAS). UPS has added a delivery area surcharge due to the population rise in some zip codes. The RAS includes additional zip codes in the delivery area. For example, package delivery to Hawaii will cost $1.35 more in 2022.

Fuel surcharge

Like all other parcel carriers, UPS has altered the fuel surcharges. The U.S. Ground and Air Services will see the change due to fuel surcharges. Fuel surcharges change without initial notice to consumers. The fuel surcharges apply to transportation charges and other charges such as Delivery charges, pickup charges, Saturday delivery and pickup, and more. For further information on fuel rates, click here.

Impact of GRI on businesses

GRI is declared by parcel carriers annually. In addition, the surcharges also increase exponentially every year. In such circumstances, shippers need to either bear the expenses or pass on the extra costs to the customers. It leads to shopping cart abandonment by many customers. The impact of GRI on businesses like furniture, home goods, etc., is massive. The shippers need to find a way around it. Alternatively, shippers need to renegotiate the carrier agreements with the parcel carriers. Parcel audit companies like Audintel advise businesses about the impact of GRI and surcharges. We, at Audintel, read the fine print of the contracts so that shippers get a fair deal.

How does Audintel minimize the overall shipping costs due to GRI?

Each business has its shipping attributes and profiles. Audintel studies the different aspects of each business shipment and its shipping needs. We guide shippers in negotiating with shipping carriers regarding discounts and the impact of GRI. So, any change in GRI and surcharges reduce the effect on our customers. Our team of experts guides businesses in selecting alternative parcel carriers and service levels to minimize the GRI impact. For instance, if our customer finds UPS Select Services expensive, we recommend alternate cheaper services provided by competitive parcel carriers.

To Summarize

UPS GRI 2022 has brought many changes in the shipping rates and surcharges. These changes make a tremendous impact on the shipping costs of businesses. E-commerce retailers get alert about the general rate increase from the corresponding carriers. They can avoid the impact on their businesses by making quick decisions. Shippers partner with parcel audit companies like Audintel to balance their shipping costs. Our team negotiates on behalf of businesses to get favorable carrier agreements. Shippers save money and time with the advice given by the experts of Audintel. For further information about GRI and other issues, contact us at [email protected]. You can also visit our Audintel website or call us at +1 (619) 354 8539.

FedEx Rate Increase 2022 – Impact on your business

With the year 2021 drawing to a close, businesses are preparing their budget for 2022. Did you know that the yearly shipping rates offered by carriers have seen an exponential increase? FedEx announced the rate increase for 2022, and it is not the same as before. Here, we will discuss the FedEx rate increase for 2022 and its impact on business. Further, we will explore how small parcel audit services help shippers save money despite the rate increase.

General Rate Increase by FedEx

Initially, we need to discuss the concept of a General Rate Increase (GRI). A GRI denotes an increase in shipping rates applied by the shipping carriers. According to US regulations, a shipper has to receive notification of a new GRI at least 30 days in advance. Since 2013, the GRI yearly increase was about 4.9%. However, for 2022, parcel carriers like FedEx and UPS have increased the GRI by an average of 5.9%. The hike is due to the high demand for e-commerce shipments. The parcel carriers are spending more to transport small parcels and freight.

Ways to handle GRI with audit intelligence

Shippers prepare their annual budget early with the announcement of the new GRI. Partnering with small parcel audit services like Audintel helps shippers understand their shipping profiles. The different aspects of a business’ shipping profile include

the type of services
weight of packages
dimensions of packages
pick-up and delivery locations
surcharges.

Audintel helps its customers identify the specific aspects of the shipping profile that need consideration. For instance, customer X ships products through FedEx Ground service. Our role is helping customer X receive discounts on fees and surcharges, specifically for FedEx Ground service.

Contrasting features between GRI and Surcharges

GRI involves an increase in the shipping rates for a long time. For instance, GRI was about 4.9% since 2013. Further, surcharges are the additional top-up costs for a specific service, zone and have a short timeline. The change in global demand and supply of goods affects GRI. Surcharges vary with each shipment and may change randomly. For example, an additional handling surcharge is not for every shipment. The surcharges may differ for each shipping carrier.

FedEx Rate Increase of 2022 and its impact on businesses

FedEx announced FedEx Rate Increase for FedEx Express, FedEx Ground, and FedEx Home Delivery services from January 3, 2022. The increase is for domestic, export, and import Services. This rate increase of 5.9% does not include surcharges and other fees of the shipping carriers. The rise in shipping rates, new surcharges, and fees impact businesses. As a consequence, shippers have to adjust their annual budget or pass on the extra expenses to the customers. Alternatively, shippers can balance out their shipping costs to some extent by using the software solutions offered by audit services.

FedEx surcharges of 2022

FedEx surcharge increase is different for each shipper, based on the corresponding agreement. The fuel surcharge is in effect from November 1, 2021. It is due to fluctuating fuel prices and the rates calculated by the oil companies. Similarly, there are surcharges such as Additional Handling Surcharge, Delivery and Returns surcharge, and many more. The surcharge increase is by zone as well as by weight. For instance, the Oversize surcharge by FedEx US express/ Ground in zone 2 has increased by 4.76%. For further information about FedEx’s surcharges and fees, click here.

How can Audintel help shippers?

Audintel analyzes the data and the kind of packages shipped by the clients. Our team studies the shipping patterns of shippers. Audintel recommends cost-reducing opportunities to shippers. We help our clients receive discounts on surcharges and fees from the parcel carriers. In addition, we negotiate or renegotiate the shipping contracts on behalf of our clients. Audintel also suggests alternatives to FedEx with cheaper regional carriers. In this way, we optimize shipping costs for our clients.

Conclusion

When expenses rise, we often wonder whether we can afford them. Similarly, the FedEx rate increase has made shippers think about their shipping costs. Audintel explains complex carrier agreements to our clients so that they get the best rates. We help businesses negotiate their shipping contracts effectively and save money. Our experts help shippers optimize their shipping spend. We have the best audit services to manage shipping costs. For further information about FedEx General Rate Increase (GRI), contact us at [email protected]. Learn about us by visiting the Audintel website or call us at +1 (619) 354 8539.