And consider that we’re talking about a very wide range of weights as packages weighing more than 30 lbs.

How, then, do the carriers get to claim that the average is only 4.9%? The answer is, primarily by lowering the increase on heavier weight packages. When you look at the increase, year after year, on packages weighing less than 30 lbs., you can see that it’s consistently at or above the announced increase of 4.9%, with most increases coming above five percent and many pushing six percent. The one notable similarity is the relatively low percentage of the increase burden being shared by packages weighing more than 31 lbs. But also, notice the higher increase in 2018 for every zone except Zone 8 for packages weighing between one and five pounds. Notice the higher increases in Zone 8 for every weight group in 2017 as compared to 2018. Lower increases on Ground relative to all express services (except for a few exceptions on express services to shorter zones.).

Lower increases on Overnight relative to 2 Day and 3 Day.Initially, they look very similar, sharing the following trends: Below are two charts (Tables 1 and 2) comparing the actual increase by service level and zone for 2017 and for 2018. You probably also understand that not all 4.9% rate increases are created equal.Īs stated above, the announced average increase for Ground in 2017 was 4.9%, the same as the announced average increase for 2018. Those of you who have been paying attention over the years and who have either been able to quantify the true impact of the increase to your business or those who have hired a consultant to help you do so know that there is likely little relationship between that true impact number and the carriers’ announced average increase.

Notice a trend? Since the carriers (UPS and FedEx) began announcing an annual general rate increase (GRI), they’ve been consistent in their announced average increase.

2010: 4.9% for Ground, 5.9% for Express (to be offset by fuel surcharge reduction).

2011: 5.9% for Ground and Express (to be offset by fuel surcharge reduction).

2012: 5.9% for Ground and Express (to be offset by fuel surcharge reduction).

2013: 5.9% for Ground and Express (to be offset by fuel surcharge reduction).

Here are the FedEx announced average rate increases for the past few years: If that number sounds familiar, it should. As has been widely reported in many industry trade journals, FedEx Corp announced that it will be raising shipping rates in 2018 for FedEx Ground, FedEx Express, and FedEx Freight by 4.9%.

Fedex zone chart 2015