UPS RATE INCREASES

As anticipated, United Parcel Service (“UPS”) has followed FedEx and announced its Annual General

Rate Increase (“GRI”), to be effective December 24, 2017. The UPS GRI will affect all UPS Ground, UPS

Air, UPS International Services, as well as all UPS Air rates within and between the US, Canada and Puerto

Rico.

According to the UPS announcement:

Package

The following changes will be effective December 24, 2017:

• The rates for UPS® Ground, UPS Air and International services will increase an average net 4.9%.
• The Large Package Surcharge will apply to any U.S. Domestic package with a length

exceeding 96 inches or a length plus girth greater than 130 inches.

• The dimensional weight divisor for packages less than or equal to one cubic foot in size (1,728

cubic inches) will be 139 for all U.S. Domestic services subject to Daily Rates or Alaska and

Hawaii Rates.

The following changes will be effective July 8, 2018:

• The Large Package Surcharge for any U.S. Domestic package delivered to a residential address

will be $90.

• The Additional Handling surcharge for any U.S. Domestic package exceeding 70 pounds in

actual weight will be $19.00.

Air Freight

Effective December 24, 2017 the rates for UPS Air Freight within and between the U.S., Canada

and Puerto Rico will increase an average net 4.9%.

Visit http://www.rates.ups.com/ for more information.

As our readers should know by now, the devil is in the details and what matters is how the rate increases

will impact your traffic. An average rate increase of 4.9% means that some rates will increase less than

4.9%, but others will increase at much higher percentages.

Some examples are:

Large Package Surcharges will be increasing 14.3% to $80.00 effective on December 24,

2017 and will increase again on July 8, 2018 to $90.00, which will be an additional increase of

12.5% for an overall increase of 26.8%

Minimum Charge for Ground Shipments will be increasing 3.42%. The new Minimum Charge

will be $7.57

Additional Handling charge will increase 10.6% on December 24, 2018 to $12.00 and then will

be increased again on July 8, 2018 to $19.00. The overall increase from the current charge of

$10.85 to $19.00, the charge after the July 8, 2018 increase, will be 75.1%

However, the General Rate Increase Winner is the “Over Maximum Limits” Surcharge, because

that charge will increase a whopping 233% from $150.00 to $500.00.

If you are looking to minimize the impact of above mentioned increases please contact our Sales Department at sales@pnglc.com or 717-626-1107 x 3.