UPS and FedEx Announce Rate Increase for 2025

On September 13, FedEx announced an average rate increase of 5.9%, effective January 6, 2025. Following this, UPS revealed its own 5.9% rate increase, set to take effect on December 23, 2024, matching FedEx’s announcement.

It’s important to note that this rate increase applies solely to service level discounts (transportation charges) and does not encompass surcharges, which may see even larger increases than the stated 5.9%. FedEx has already published its surcharge increases, indicating hikes in Additional Handling charges ranging from 25% to 29%.

You can review the full list of FedEx surcharge and fee updates [here]. UPS has yet to release its complete list of increases.

If you have questions about how the 2025 rate increases may impact your business, please reach out to eShipping.