Coming on the heels of the 2022 FedEx shipping increases, the 2022 UPS Rate Increase is here! UPS announced increases in the 2022 shipping rates. In short, the rates for UPS ground, air, and international services will increase an average net of 5.9% effective December 26, 2021.
As you can see, the price increase for the domestic rates is above and below for different services. The two services with the highest price increase are next-day air and 3 day select, with an increase of 6.09% and 9.48%. With the Amazonification of e-commerce and buyer preferences, these are the two services that will see the greatest increase in usage in 2022. Customers want to ship at a lower cost and at their front door sooner.
UPS Ground Price Increase in 2022
Zone 44 is metro Alaska and Hawaii, zone 45 is Puerto Rico and zone 46 is remote Alaska and Hawaii. UPS ground price increase averages 6.40% for all zones and services with 1 to 10 pound packages seeing the greatest increase of 6.65%.
UPS Express Price Increases for 2022
Historical UPS Rate Increases
Minimum Charge Increase
All UPS packages are subject to a minimum charge, as discussed in a past blog post. No matter how great your discounts may be, every package is subject to this rule, and you could be losing valuable discounts. In 2021 the UPS Ground minimum package charge was $8.76. This will increase by 6.85% and become $9.36 in 2022, the same minimum package charge as FedEx ground and home delivery. Therefore, no matter how low your UPS discount is, the minimum charge will be $9.36.
How to Mitigate Yearly Price Increases
Most companies accept the 2022 UPS rate increase without any delay. They merely assign the additional logistics expense to the end user’s costs. Shopping cart abandonment is linked to high shipping costs. Now’s more critical than ever that your company has a parcel auditing plan in place. Remember to file for any guaranteed service refunds that you are entitled to.
A company can mitigate these costs with a comprehensive contract analysis and agreement renegotiation. In addition, some of our UPS clients will not have this increase impact their shipping costs at all! They negotiated to have rates for transportation, value-added services, and other charges continue to be based on the 2021 UPS Rate and Service Guide through December 29, 2022.
Contact your carrier representative to request an exception to the yearly price increases, or contact us at Refund Retriever. In conclusion, we can evaluate your shipping needs and help with a complete contract negotiation.