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.