Parcel Industry News | The Impact of the 2019 UPS GRI

With little time left before the new year, or for shippers to plan, UPS has announced its GRI for 2019. The overall rate increase of 4.9% takes effect on December 26, 2018. The announcement comes very late compared to other carriers — the USPS and FedEx announced their increases weeks ago. And, UPS offered no explanation for the timing of this announcement.

The following is our analysis of the GRI and shows in detail how current UPS shippers will be affected.

The bottom line? The GRI has made the overall rate gap larger between the carriers. FedEx now has a greater cost advantage when it comes to many Accessorials and Surcharges, as well as when comparing the carriers’ postal solutions.

As is always the case with GRIs, it’s necessary to look past the stated average increase, which is meaningless to individual shippers. Keep reading to understand how your company will be impacted.

The Increases (the following is from the UPS release)

Effective December 26, 2018, the published rates for our services will increase. This supports ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS. Below is an overview of our 2019 Rates.

The following changes will be effective December 26, 2018:

• The rates for UPS^® Ground, UPS Air and International services will increase an average net 4.9%.
• Fuel surcharges will apply to Additional Handling, Over Maximum Limits, Signature Required and Adult Signature Required accessorials.
• A processing fee will be charged when Package Level Detail (PLD) is not provided to UPS prior to delivery.
• The rates for certain value-added services and other charges will increase.

Of course, there is much more to the story.

Click Here to read our complete UPS 2019 GRI Analysis.