Resource Center/Article • 01/03/2025
Understanding FedEx and UPS 2025 GRIs: What Shippers Need to Know
Discover insights into FedEx and UPS 2025 General Rate Increases (GRIs) and how these changes impact shippers.
Sam Sealey
Sr. Manager, Analytics
Sam Sealey is a Sr. Manager of Analytics at Green Mountain, a Parcel Spend Management service provider for shippers with over 10 million parcels per year. In this role, Sam partners with clients and internal Green Mountain teams to drive excellence in analytics by focusing on strategic decision-making, fostering innovation, and optimizing operational processes. Sam […]
Green Mountain experts, Cassidy Cordell and Scott Bounds recently shared insights into FedEx and UPS’s 2025 General Rate Increases (GRIs) such as the definition of GRIs, and the historical trends of base freight costs and specific accessorial surcharges. Below, I dive deeper into these concepts to examine how these increases will develop in 2025 by analyzing service, zone, weight, and accessorial surcharges.
What is a GRI and is NOT a GRI?
GRI stands for general rate increase and is just that – general. This increase is based on the average package characteristics (service, zone, and weight) across all services or the broader service classification, such as Air/Express or Ground. A GRI is not the singular increase of each service and the zone/weight combination within each service. In fact, services can vary in terms of percentage increases, as well as variations in the rates within each service.
Below are examples using FedEx Ground rates:
| Service | Zone | Weight | 2024 | 2025 | Difference ($) | Difference (%) |
|---|---|---|---|---|---|---|
| Ground | 2 | 1 | $10.70 | $11.32 | $0.62 | 5.79% |
| Ground | 2 | 2 | $11.53 | $12.08 | $0.55 | 4.77% |
Furthermore, the announced increase includes only base freight rates and does not include accessorial and fuel surcharges. Accessorial surcharges will increase at different rates based on the specific surcharge and service level. Fuel will increase only if changes are made to fuel indexes and/or to accessorial surcharge application rules.
Behind the GRI: Examining Base Freight
In September/October 2024, both FedEx and UPS announced 5.9% GRIs for 2025 for their US domestic (not including Ground Economy/SurePost), US export, and US import services. As stated previously, 5.9% is the average increase. In December 2024, FedEx and UPS announced their 2025 Ground Economy and SurePost rates, respectively. Below are how both FedEx and UPS service classes vary by zone (zones 2 to 8 only) and weight.
| Carrier | Service Classification | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Grand Total |
|---|---|---|---|---|---|---|---|---|---|
| FedEx | Express | 5.8% | 6.9% | 5.6% | 6.0% | 6.2% | 6.3% | 6.3% | 6.1% |
| Ground | 5.4% | 5.3% | 5.4% | 5.4% | 5.9% | 6.2% | 6.1% | 5.5% | |
| Ground Economy | 5.0% | 4.6% | 4.5% | 4.5% | 4.8% | 4.9% | 4.9% | 4.7% | |
| Total | 5.4% | 5.5% | 5.3% | 5.6% | 5.9% | 6.1% | 6.1% | 5.6% | |
| UPS | Air | 5.2% | 5.9% | 6.0% | 6.3% | 6.4% | 6.2% | 6.5% | 6.2% |
| Ground | 5.9% | 5.5% | 5.4% | 5.5% | 5.7% | 6.0% | 6.2% | 5.7% | |
| SurePost | 9.7% | 9.7% | 9.7% | 9.6% | 9.6% | 9.6% | 9.6% | 9.7% | |
| Total | 6.3% | 6.2% | 6.2% | 6.4% | 6.6% | 6.5% | 6.7% | 6.4% |
| Carrier | Service Classification | 0-0.9 lbs | 1-3 lbs | 4-6 lbs | 7-10 lbs | 11-15 lbs | 16-20 lbs | 21-50 lbs | 51-70 lbs | 71-100 lbs | 100+ lbs | Grand Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FedEx | Express | 6.4% | 6.1% | 6.0% | 6.0% | 6.0% | 6.2% | 6.1% | 6.7% | 6.3% | 6.3% | 6.1% |
| Ground | 5.0% | 5.1% | 5.0% | 6.0% | 5.9% | 5.9% | 6.1% | 6.3% | 6.2% | 5.5% | ||
| Ground Economy | 5.1% | 5.0% | 5.1% | 4.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.7% | |
| Total | 5.3% | 5.5% | 5.5% | 5.4% | 5.8% | 5.8% | 5.9% | 6.2% | 6.3% | 6.2% | 5.6% | |
| UPS | Air | 6.2% | 6.1% | 6.2% | 6.2% | 6.2% | 6.4% | 6.5% | 6.5% | 6.4% | 6.4% | 6.2% |
| Ground | 5.3% | 5.5% | 5.5% | 6.1% | 6.1% | 6.1% | 6.1% | 5.5% | 5.6% | 5.7% | ||
| SurePost | 9.9% | 9.9% | 9.9% | 9.5% | 6.2% | 6.1% | 6.1% | 6.2% | 6.1% | 6.0% | 9.7% | |
| Total | 9.3% | 6.5% | 6.5% | 6.1% | 6.2% | 6.2% | 6.2% | 6.2% | 5.7% | 5.6% | 6.4% |
Both carriers have varying increases by zone and both carriers show higher increases in zone 6 to 8 for Express and Ground while Ground Economy and SurePost services show lower increases in zones 6 to 8. The trends between the carriers, however, are different when it comes to weight. The increases for both carriers are higher for ounce and letter/pack rates (< 1 lb). FedEx Ground and Express increases are directly proportional to weight increases. FedEx Ground Economy increases are steady up to 9 lbs. but show no increases over 9 lbs. The UPS Ground and Air increases appear to peak around 70 lbs. and then decrease at 71 lbs. UPS SurePost’s increases are highest at lower weights but decrease by 3 percentage points at 10 lbs. and greater.
Each carrier shows different increases by service. Both carriers show Express/Air increase over 6% and Ground increases slightly below the 5.9% average. More specifically, First Overnight and Early A.M. show the lowest increases at approximately 1 percentage point below the 5.9% average despite having the highest costs. FedEx and UPS 2-Day and 3-Day services have the highest Express/Ground increases ranging from 6.9% to 7.1%. UPS SurePost rates have the highest rate increases of 9.7% while FedEx Ground Economy rates have the lowest rate increases of 4.7%.
| Carrier | Service Classification | Service | Grand Total |
|---|---|---|---|
| FedEx | Express | First Overnight | 4.5% |
| FedEx | Express | Priority Overnight | 5.5% |
| FedEx | Express | Standard Overnight | 5.7% |
| FedEx | Express | 2 Day AM | 6.9% |
| FedEx | Express | 2Day | 7.0% |
| FedEx | Express | Express Saver | 7.1% |
| FedEx | Ground | Ground | 5.6% |
| FedEx | Ground | Home Delivery | 5.4% |
| FedEx | Ground Economy | < 1 lbs | 5.1% |
| FedEx | Ground Economy | > 1 lbs | 4.6% |
| UPS | Air | Early A.M. | 4.9% |
| UPS | Air | Next Day Air | 6.0% |
| UPS | Air | Next Day Air Saver | 6.0% |
| UPS | Air | 2nd Day Air A.M. | 6.6% |
| UPS | Air | 2nd Day Air | 6.8% |
| UPS | Air | 3 Day Select | 6.6% |
| UPS | Ground | Ground Commercial | 5.8% |
| UPS | Ground | Standard Ground | 5.7% |
| UPS | SurePost | < 1 lbs | 9.9% |
| UPS | SurePost | > 1 lbs | 9.6% |
The overall increases show as follows:
| Carrier | Service Classification | Weight Distribution | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Grand Total |
|---|---|---|---|---|---|---|---|---|---|---|
| FedEx | Express | 0 - 0.9 lbs | 6.3% | 6.1% | 6.0% | 6.6% | 6.6% | 6.5% | 6.6% | 6.4% |
| 1 - 3 lbs | 5.8% | 6.6% | 5.7% | 6.0% | 6.2% | 6.2% | 6.2% | 6.1% | ||
| 4 - 6 lbs | 5.8% | 6.8% | 5.3% | 5.8% | 6.3% | 6.4% | 6.3% | 6.0% | ||
| 7 - 10 lbs | 5.7% | 7.5% | 5.3% | 6.0% | 5.9% | 6.3% | 6.4% | 6.0% | ||
| 11 - 15 lbs | 5.7% | 7.5% | 5.5% | 6.1% | 5.8% | 6.2% | 6.3% | 6.0% | ||
| 16 - 20 lbs | 5.7% | 7.4% | 5.6% | 6.0% | 6.5% | 6.0% | 6.5% | 6.2% | ||
| 21 - 50 lbs | 5.8% | 7.4% | 5.4% | 5.8% | 6.3% | 6.3% | 6.5% | 6.1% | ||
| 51 - 70 lbs | 5.8% | 7.5% | 6.1% | 6.6% | 6.9% | 6.8% | 6.9% | 6.7% | ||
| 71 - 100 lbs | 5.1% | 5.5% | 5.1% | 6.3% | 6.8% | 6.7% | 6.8% | 6.3% | ||
| 100+ lbs | 4.9% | 4.9% | 5.0% | 6.7% | 6.9% | 6.7% | 6.6% | 6.3% | ||
| Express Total | 5.8% | 6.9% | 5.6% | 6.0% | 6.2% | 6.3% | 6.3% | 6.1% | ||
| Ground | 1 - 3 lbs | 5.1% | 4.8% | 4.8% | 4.8% | 5.1% | 5.2% | 5.5% | 5.0% | |
| 4 - 6 lbs | 5.1% | 5.1% | 4.8% | 4.8% | 5.2% | 5.9% | 5.3% | 5.1% | ||
| 7 - 10 lbs | 5.0% | 5.0% | 4.9% | 4.7% | 5.0% | 5.7% | 5.1% | 5.0% | ||
| 11 - 15 lbs | 5.8% | 5.7% | 5.8% | 6.0% | 6.5% | 6.4% | 6.5% | 6.0% | ||
| 16 - 20 lbs | 5.7% | 5.7% | 5.9% | 5.9% | 6.3% | 6.4% | 6.5% | 5.9% | ||
| 21 - 50 lbs | 5.7% | 5.6% | 5.9% | 5.9% | 6.4% | 6.7% | 6.7% | 5.9% | ||
| 51 - 70 lbs | 5.3% | 5.3% | 6.3% | 6.4% | 7.0% | 7.2% | 6.7% | 6.1% | ||
| 71 - 100 lbs | 5.6% | 5.5% | 6.2% | 6.4% | 6.9% | 7.2% | 6.9% | 6.3% | ||
| 100+ lbs | 5.7% | 5.5% | 6.1% | 6.6% | 6.9% | 6.8% | 6.6% | 6.2% | ||
| Ground Total | 5.4% | 5.3% | 5.4% | 5.4% | 5.9% | 6.2% | 6.1% | 5.5% | ||
| Ground Economy | 0 - 0.9 lbs | 5.8% | 4.8% | 4.4% | 4.5% | 5.5% | 5.0% | 5.9% | 5.1% | |
| 1 - 3 lbs | 5.0% | 4.8% | 4.8% | 4.8% | 5.0% | 5.3% | 5.4% | 5.0% | ||
| 4 - 6 lbs | 5.1% | 5.1% | 4.8% | 4.9% | 5.3% | 5.9% | 5.4% | 5.1% | ||
| 7 - 10 lbs | 4.5% | 4.4% | 4.4% | 4.1% | 4.4% | 4.9% | 4.5% | 4.4% | ||
| 11 - 15 lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| 16 - 20 lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| 21 - 50 lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| 51 - 70 lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| 71 - 100 lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| 100+ lbs | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||
| Ground Economy Total | 5.0% | 4.6% | 4.5% | 4.5% | 4.8% | 4.9% | 4.9% | 4.7% | ||
| FedEx Total | 5.4% | 5.5% | 5.3% | 5.6% | 5.9% | 6.1% | 6.1% | 5.6% |
| Carrier | Service Classification | Weight Distribution | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Grand Total |
|---|---|---|---|---|---|---|---|---|---|---|
| UPS | Air | 0 - 0.9 lbs | 5.9% | 6.2% | 6.0% | 6.4% | 6.4% | 6.1% | 6.0% | 6.2% |
| 1 - 3 lbs | 5.3% | 5.8% | 6.0% | 6.3% | 6.4% | 5.9% | 6.2% | 6.1% | ||
| 4 - 6 lbs | 5.3% | 5.9% | 5.9% | 6.1% | 6.3% | 6.2% | 6.6% | 6.2% | ||
| 7 - 10 lbs | 5.2% | 6.0% | 6.0% | 6.3% | 6.3% | 6.1% | 6.5% | 6.2% | ||
| 11 - 15 lbs | 5.1% | 5.9% | 6.0% | 6.4% | 6.3% | 6.3% | 6.6% | 6.2% | ||
| 16 - 20 lbs | 5.0% | 6.0% | 6.0% | 6.4% | 6.9% | 6.2% | 6.8% | 6.4% | ||
| 21 - 50 lbs | 5.0% | 6.1% | 6.0% | 6.5% | 6.9% | 6.6% | 6.9% | 6.5% | ||
| 51 - 70 lbs | 5.0% | 5.8% | 6.2% | 6.5% | 6.9% | 6.7% | 6.6% | 6.5% | ||
| 71 - 100 lbs | 4.9% | 5.2% | 6.2% | 6.4% | 6.8% | 6.7% | 6.8% | 6.4% | ||
| 100+ lbs | 4.4% | 5.1% | 6.0% | 6.3% | 6.7% | 6.6% | 6.8% | 6.4% | ||
| Air Total | 5.2% | 5.9% | 6.0% | 6.3% | 6.4% | 6.2% | 6.5% | 6.2% | ||
| Ground | 1 -3 lbs | 5.3% | 5.1% | 5.1% | 5.2% | 5.5% | 5.6% | 5.5% | 5.3% | |
| 4 - 6 lbs | 5.6% | 5.6% | 5.3% | 5.2% | 5.7% | 6.1% | 5.3% | 5.5% | ||
| 7 - 10 lbs | 5.7% | 5.2% | 5.6% | 5.1% | 5.4% | 5.9% | 5.2% | 5.5% | ||
| 11 - 15 lbs | 6.4% | 5.8% | 5.6% | 5.8% | 5.9% | 6.1% | 6.9% | 6.1% | ||
| 16 - 20 lbs | 6.4% | 5.8% | 5.6% | 5.8% | 5.9% | 6.1% | 6.9% | 6.1% | ||
| 21 - 50 lbs | 6.4% | 5.8% | 5.6% | 5.8% | 5.9% | 6.1% | 6.9% | 6.1% | ||
| 51 - 70 lbs | 6.4% | 5.8% | 5.6% | 5.8% | 5.9% | 6.1% | 6.9% | 6.1% | ||
| 71 - 100 lbs | 5.7% | 5.3% | 5.1% | 5.3% | 5.4% | 5.6% | 6.1% | 5.5% | ||
| 100+ lbs | 5.9% | 6.4% | 5.1% | 5.3% | 5.4% | 5.6% | 5.4% | 5.6% | ||
| Ground Total | 5.9% | 5.5% | 5.4% | 5.5% | 5.7% | 6.0% | 6.2% | 5.7% | ||
| SurePost | 0 - 0.9 lbs | 9.8% | 9.9% | 9.8% | 9.9% | 9.9% | 10.0% | 10.0% | 9.9% | |
| 1 - 3 lbs | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | ||
| 4 - 6 lbs | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | 9.9% | ||
| 7 - 10 lbs | 9.5% | 9.5% | 9.5% | 9.4% | 9.4% | 9.4% | 9.4% | 9.5% | ||
| 11 - 15 lbs | 6.4% | 5.9% | 5.9% | 5.9% | 5.9% | 6.0% | 6.8% | 6.2% | ||
| 16 - 20 lbs | 6.4% | 5.9% | 5.9% | 5.9% | 5.9% | 6.0% | 6.8% | 6.1% | ||
| 21 - 50 lbs | 6.4% | 5.9% | 5.9% | 5.9% | 5.9% | 5.9% | 6.7% | 6.1% | ||
| 51 - 70 lbs | 6.3% | 5.9% | 5.9% | 5.9% | 5.9% | 6.1% | 6.9% | 6.2% | ||
| 71 - 100 lbs | 6.0% | 5.6% | 6.0% | 5.5% | 6.1% | 6.1% | 6.9% | 6.1% | ||
| 100+ lbs | 6.0% | 5.6% | 6.0% | 5.5% | 6.1% | 6.1% | 6.9% | 6.0% | ||
| UPS | SurePost Total | 9.7% | 9.7% | 9.7% | 9.6% | 9.6% | 9.6% | 9.6% | 9.7% | |
| UPS Total | 6.3% | 6.2% | 6.2% | 6.4% | 6.6% | 6.5% | 6.7% | 6.4% |
More Increases: Examining Accessorial Surcharges
FedEx and UPS accessorial surcharges increase at different rates based on the surcharge and service. Overall, each surcharge increases ranging from 6% to 30%. For example, FedEx Express and Ground Additional Handling and Oversize surcharge increases range between 26.5% to 28%, but Express and Ground Delivery Area Surcharges increase by 6% to 9%. Below are high-level increase summaries for FedEx and UPS.
| Carrier | Service Classification | Surcharge Type | Avg 2024 Rate | Avg 2025 Rate | Diff $ | Diff % |
|---|---|---|---|---|---|---|
| FedEx | Express | Additional Handing Dimension | $26.43 | $33.43 | $7.07 | 26.4% |
| Additional Handling Packaging | $23.36 | $29.57 | $6.34 | 26.5% | ||
| Additional Handling Weight | $39.50 | $49.93 | $10.56 | 26.4% | ||
| Address Correction | $22.50 | $24.00 | $1.50 | 6.7% | ||
| Adult Signature | $8.15 | $8.65 | $0.50 | 6.1% | ||
| DAS Commercial | $3.95 | $4.20 | $0.25 | 6.3% | ||
| DAS Commercial Extended | $4.90 | $5.25 | $0.35 | 7.1% | ||
| DAS Residential | $5.85 | $6.20 | $.035 | 6.0% | ||
| DAS Residential Extended | $7.70 | $8.30 | $0.60 | 7.8% | ||
| Indirect Signature | $6.75 | $7.15 | $0.40 | 5.9% | ||
| Over Maximum Limits | $160.00 | $205.00 | $45.00 | 28.1% | ||
| Oversize/Large Package Commercial | $185.71 | $236.43 | $51.05 | 27.2% | ||
| Oversize/Large Package Residential | $185.71 | $236.43 | $51.18 | 27.2% | ||
| Remote Area Surcharge US 48 | $14.25 | $15.50 | $1.25 | 8.8% | ||
| Residential Surcharge | $6.15 | $6.55 | $0.40 | 6.5% | ||
| Signature Required | $6.75 | $7.15 | $0.40 | 5.9% | ||
| Express Total | $6.80 | $7.38 | $0.58 | 8.5% | ||
| Ground | Additional Handling Dimension | $26.43 | $33.43 | $6.65 | 26.6% | |
| Additional Handling Packaging | $23.36 | $29.57 | $6.06 | 26.8% | ||
| Additional Handling Weight | $39.50 | $49.93 | $10.02 | 26.4% | ||
| Address Correction | $22.50 | $24.00 | $1.50 | 6.7% | ||
| Adult Signature | $8.15 | $8.65 | $0.50 | 6.1% | ||
| DAS Commercial | $3.95 | $4.20 | $0.25 | 6.3% | ||
| DAS Commercial Extended | $4.90 | $5.25 | $0.35 | 7.1% | ||
| DAS Residential | $5.70 | $6.20 | $0.50 | 8.8% | ||
| DAS Residential - Home Delivery | $5.70 | $6.20 | $0.50 | 8.8% | ||
| DAS Residential Extended | $7.70 | $8.30 | $0.60 | 7.8% | ||
| DAS Residential Extended - Home Delivery | $7.70 | $8.30 | $0.60 | 7.8% | ||
| Indirect Signature | $6.75 | $7.15 | $0.40 | 5.9% | ||
| Over Maximum Limits | $1,250.00 | $1,325.00 | $75.00 | 6.0% | ||
| Oversize/Large Package Commercial | $185.71 | $236.43 | $49.46 | 27.6% | ||
| Oversize/Large Package Residential | $220.00 | $278.57 | $55.71 | 26.5% | ||
| Remote Area Surcharge US 48 | $14.25 | $15.50 | $1.25 | 8.8% | ||
| Residential Surcharge | $5.55 | $5.95 | $0.40 | 7.2% | ||
| Residential Surcharge - Home Delivery | $5.55 | $5.95 | $0.40 | 7.2% | ||
| Signature Required | $6.75 | $7.15 | $0.40 | 5.9% | ||
| Ground Total | $7.82 | $8.82 | $1.00 | 12.8% | ||
| Ground Economy | Additional Handling Dimension | $6.05 | $6.55 | $0.50 | 8.3% | |
| Additional Handling Packaging | $6.05 | $6.55 | $0.50 | 8.3% | ||
| Additional Handling Weight | $6.05 | $6.55 | $0.50 | 8.3% | ||
| DAS Postal | $3.80 | $4.00 | $0.20 | 5.3% | ||
| DAS Postal Extended | $5.05 | $5.35 | $0.30 | 5.9% | ||
| Ground Economy Total | $4.21 | $4.44 | $0.23 | 5.6% |
| Carrier | Service Classification | Surcharge Type | Avg 2024 Rate | Avg 2025 Rate | Diff $ | Diff % |
|---|---|---|---|---|---|---|
| UPS | Air | Additional Handling Dimension | $26.29 | $33.43 | $7.29 | 27.2% |
| Additional Handling Packaging | $23.36 | $29.57 | $6.34 | 26.5% | ||
| Additional Handling Weight | $39.36 | $49.93 | $10.75 | 26.9% | ||
| Address Correction | $22.00 | $23.50 | $1.50 | 6.8% | ||
| Adult Signature | $8.15 | $8.70 | $0.55 | 6.7% | ||
| DAS Commercial | $3.95 | $4.20 | $0.25 | 6.3% | ||
| DAS Commercial Extended | $4.90 | $5.35 | $0.45 | 9.2% | ||
| DAS Residential | $5.85 | $6.15 | $0.30 | 5.1% | ||
| DAS Residential Extended | $7.70 | $8.30 | $0.60 | 7.8% | ||
| Indirect Signature | $6.75 | $7.20 | $0.45 | 6.7% | ||
| Over Maximum Limits | $1,250.00 | $1,325.00 | $75.00 | 6.0% | ||
| Oversize/Large Package Commercial | $185.71 | $236.43 | $51.38 | 27.2% | ||
| Oversize/Large Package Residential | $220.00 | $278.57 | $59.33 | 26.6% | ||
| Remote Area Surcharge US 48 | $14.15 | $15.35 | $1.20 | 8.5% | ||
| Residential Surcharge | $6.20 | $6.55 | $0.35 | 5.6% | ||
| Signature Required | $6.75 | $7.20 | $0.45 | 6.7% | ||
| Air Total | $6.84 | $7.39 | $0.55 | 8.0% | ||
| Ground | Additional Handling Dimension | $26.29 | $33.43 | $6.79 | 27.1% | |
| Additional Handling Packaging | $23.36 | $29.57 | $6.06 | 26.7% | ||
| Additional Handling Weight | $39.36 | $49.93 | $10.13 | 26.7% | ||
| Address Correction | $22.00 | $23.50 | $1.50 | 6.8% | ||
| Adult Signature | $8.15 | $8.70 | $0.55 | 6.7% | ||
| DAS Commercial | $3.95 | $4.20 | $0.25 | 6.3% | ||
| DAS Commercial Extended | $4.90 | $5.35 | $0.45 | 9.2% | ||
| DAS Residential | $5.70 | $6.15 | $0.45 | 7.9% | ||
| DAS Residential Extended | $7.70 | $8.30 | $0.60 | 7.8% | ||
| Indirect Signature | $6.75 | $7.20 | $0.45 | 6.7% | ||
| Over Maximum Limits | $1,250.00 | $1,325.00 | $75.00 | 6.0% | ||
| Oversize/Large Package Commercial | $185.71 | $236.43 | $49.77 | 27.7% | ||
| Oversize/Large Package Residential | $220.00 | $278.57 | $55.58 | 26.6% | ||
| Remote Area Surcharge US 48 | $14.15 | $15.35 | $1.20 | 8.5% | ||
| Residential Surcharge | $5.65 | $6.10 | $0.45 | 8.0% | ||
| Signature Required | $6.75 | $7.20 | $0.45 | 6.7% | ||
| Ground Total | $7.83 | $8.84 | $1.01 | 13.0% | ||
| SurePost | Additional Handling Dimension | $26.29 | $33.43 | $7.09 | 27.1% | |
| Additional Handling Packaging | $23.36 | $29.57 | $6.21 | 26.6% | ||
| Additional Handling Weight | $39.36 | $49.93 | $9.88 | 26.6% | ||
| Address Correction | $22.00 | $23.50 | $1.50 | 6.8% | ||
| DAS Postal | $3.80 | $6.15 | $2.35 | 61.8% | ||
| DAS Postal Extended | $4.90 | $8.30 | $3.40 | 69.4% | ||
| SurePost Total | $4.33 | $7.04 | $2.71 | 62.6% |
FedEx, also, announced changes to their Delivery Area Surcharge (DAS) ZIP codes and Additional Handling - Dimensions minimum billable weight of 40 lbs. The DAS changes will cause DAS occurrences to increase yielding additional DAS cost increases between 8% to 10% due to ZIP codes moving into higher cost DAS categories. Additional Handling - Dimensions surcharges will not change count, but the minimum billable weight for these shipments will increase 10 lbs. to 15 lbs. per package yielding higher base freight rates.
UPS announced changes to their US Domestic Ground/SurePost and Air fuel surcharge indexes. The graphs below show how each index trends across increasing fuel costs.
UPS’s more recent index changes only affected the fuel surcharge percentage, whereas these changes also affect the threshold ranges. The Ground/SurePost index will change from $0.12 threshold ranges to $0.18 threshold ranges for on-highway diesel fuel costs below $3.55 and $0.09 threshold ranges at and above $3.55. Furthermore, each threshold fuel surcharge percentage will increase between 1 to 2 percentage points. The average cost for on-highway diesel fuel is $3.51 between 11/11/2024 and 12/16/2024, and the monthly 2024 average is $3.79. Using these values will produce the following results:
| Fuel Index | Time Range | Average Fuel Cost | 2024 Fuel Surcharge | 2025 Fuel Surcharge | Difference | Fuel Cost % Increase |
|---|---|---|---|---|---|---|
| US Domestic Ground/SurePost | 11/11/2024 - 12/16/2024 | $3.51 | 16.50% | 17.50% | +1.00% | +6.1% |
| January 2024 - November 2024 | $3.79 | 17.00% | 18.25% | +1.25% | +7.4% |
The US Domestic Air index will change from $0.05 threshold ranges to $0.09 threshold ranges for kerosene-type jet fuel costs below $2.11 and the threshold ranges at and above $2.11 will remain at $0.05. The air index’s surcharge percentages will increase 0.5% to 2.25%. The average cost for kerosene-type jet fuel between 11/8/2024 and 12/13/2024 is $2.06, and the monthly 2024 average is $2.36. Using these values will produce the following results:
| Fuel Index | Time Range | Average Fuel Cost | 2024 Fuel Surcharge | 2025 Fuel Surcharge | Difference | Fuel Cost % Increase |
|---|---|---|---|---|---|---|
| US Domestic Air | 11/8/2024 - 12/13/2024 | $2.06 | 16.00% | 16.75% | +0.75% | +4.7% |
| January 2024 - November 2024 | $2.36 | 17.50% | 18.25% | +0.75% | +4.3% |
The changes to each index also show widening gaps between the 2024 and 2025 indexes as the cost of fuel decreases. For example, on-highway diesel fuel costs of $3.41 and $2.41 yields 7.7% and 14.3% Ground/SurePost fuel cost increases, respectively. Similarly, kerosene-type jet fuel costs of $2.28 and $1.48 yield 4.4% and 17.3% Air fuel cost increases, respectively.
FedEx’s accessorial surcharges (including the DAS ZIP and Additional Handling changes) will range between 5% to 28% while UPS’s accessorial surcharges will range between 5% to 69%. UPS’s fuel surcharge index change will yield cost increases ranging between 4% to 17%. Be mindful that the UPS fuel index changes will also be applied to the increasing costs of base freight and accessorial surcharges which will further increase fuel costs.
What Does It All Mean for Shippers?
For planning purposes, shippers must consider all charges that will increase and not just the announced average increase. This will entail applying this and last year’s rates, charges, and accessorial surcharge changes to historical shipments in addition to any forecasted package growth or shrinkage. While the base freight rates will increase an average of 5.9%, the increases for accessorial and fuel surcharge will vary but may have larger increases than base freight. This will yield overall increases higher than the announced GRIs. Parcel pricing depends on a few factors such as distance between origin and destination, weight, service used, applied surcharges, and contractual pricing. These factors also determine the amount of increase shippers should expect in 2025.
To better understand how these rate changes affect your business, it is best to evaluate historical shipments by applying both the 2024 and 2025 rates and comparing the costs. At Green Mountain, our tenured, seasoned experts have the experience needed to complete these analyses and help you optimize your 2025 parcel spend. Learn more about our guided solutions for peak performance, trusted by the world’s top shippers.
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