UPS is another giant that will change the rates of their services. Those rates will be applied starting December 29, 2020. Below, we will divide the content on the overview of the rate change and also tables where you can see all the changes that are applied.
Overview of the UPS 2020 rates
According to UPS, the rates will be changed in order to enhance their services and to ensure the ultimate client satisfaction. The rate overview as is follows:
These are basic changes that UPS will apply at the end of the current year. As you can see, they apply to the most commonly used services. At this point, we can add that Air freight rates between the United States and Puerto Rico and Canada will increase by 4.2%. UPS freight for all LTL shipments will increase by 3.9%.
Details on the UPS rate increase in 2020
The rate increase was revealed on the 18th of November and it is generally 4.9%. We already mentioned when they will be applied but all you have to remember that starting 2020 you can expect these rates to apply to your shipments. In order to provide as many details as possible, we have compiled several tables where you can see the rate increase in all the detail.
UPS air compared to UPS ground price increase. All values are expressed in percentages.
FedEx and UPS rate increase comparison
It is mandatory to add that FedEx is also increasing its rates in 2020. UPS rates will be slightly higher than FedEx when compared to the next day, saver next day and both 2-day services. An interesting fact is that for 3-day services, UPS is more affordable than FedEx by 16%. But for sure post, they are more expensive by 3.5% than other rivals. Here is a table with the details. Values in the table are percentages.
What this proves is that in 2020 FedEx and UPS will have almost identical rates for most of their services. The most important convergence is over max limit and large package. Surcharge for commercial large package will be $100 in 2020, while it will be $120 for residential addresses. Over max limit will cost you $875. Additional handling will be 4.3% more expensive per weight and 5.3% per dimension. Additional handling (weight) is decreased to 50 pounds from 70 pounds, as we have mentioned at the beginning. This will cost you $24.
Here is a table with the heavy and large packages and corresponding costs of UPS and FedEx explained.
EAS and DAS ZIP code changes
In 2020 we can see that FedEx will make some major changes to the DAS or Delivery Area Surcharge and EAS ZIP codes. They will add 2000 new ZIP codes. We must add that UPS offers the same change and they have 24.600 codes which are completely identical to FedEx lists. The difference is only in 28 codes. An important fact is that the related rates will be increased as well. The size or volume of the EAS and DAS will increase, hence the fees will be higher also. Below is a table with the details.
Increase of surcharges and accessorial
Last but not least important is the fact that accessorial and surcharges of UPS will be increased in 2020 and they should look similar if not identical to FedEx. The prohibited item, which refers to the transporting items that are banned according to the rules and regulations of UPS will now cost you $150. A rebilling fee is now $17 but there won’t be a $1.5 fee for UPS access point. Below is a table with all the changes regarding this matter.
The final word
Here today you were able to see all about the changes referring to the UPS 2020 rates and we explained all the major and less-known increases. The increase is expected to affect mostly shippers who ship packaged above 50 pounds of weight. Keep in mind that the general increase in the rates is 4.9% and it affects all shippers starting 29th of December 2019.