2019 UPS Rate Changes

Another new year brings another shipping cost increase.

Compared to the 2017 UPS domestic rates (2 years ago), we expect an average of 11% increase for packages under 70lbs. For packages 70lbs and up, the increase will be around 25%. Larger packages will also see new surcharges, which will affect some mufflers and radiators. Similar or identical increases are seen for shipping to Canada.

Fuel surcharges are dropping, but are still higher than a few years ago, and are also calculated at a higher rate. For example, the cost of diesel in September 2016 resulted in a 5% ground package surcharge, that same cost would now result in a 6% surcharge. The current surcharge is 7.25%. Air shipment fuel surcharges are 30% lower than in October 2018, resulting in a 2.5% relative drop in air shipment costs.

We estimate the actual average year over year increase to be about 10% relative to 2018 rates. FedEx has a similar rate increase that is effective in a few days. The next Priority Mail International rate increase will be on the January 27th 2019 and be around 4%, this will only affect international shipments.