UPS plans 5.9% rate increase on Dec. 21

The carrier’s average rate bump will match FedEx’s upcoming increase, but UPS also has additional changes in store.

The 5.9% increase will arrive at the tail end of the holiday shipping rush, a period in which shippers are expected to be grappling with record-high delivery prices aided by fuel surcharges and peak season fees.

Rival FedEx also revealed plans last month for a 5.9% rate hike slated to take effect Jan. 4, 2027. But how UPS will compare to FedEx when looking at service used, weight and shipping distance is unclear, as UPS has not yet disclosed the precise changes within its average increase.

"Don’t plan around 5.9%," Paul Yaussy, head of parcel contract intelligence at logistics data platform Loop, said in a LinkedIn post. "It’s an average on base rates and won’t reflect your actual cost."

This story was originally published by Supply Chain Dive. Read the full story at Supply Chain Dive →