Shipping prices increase yearly, and in 2024, UPS and FedEx will go up by nearly 6% as consumer demands keep slowing down.
Since 2015, FedEx and UPS have increased their shipping rates annually by 4.9% until 2021. After seven years, high inflations, global economic pressure, and fuel price hikes pushed the companies to increase their prices by 5.9%, the record highest ever this year, at nearly 7%. It stabilizes more from next year, with UPS and FedEx setting their price hikes on average at 5.9%.
Breaking down the data
Locate2u has returned to the archives to put these price increases into perspective. In 2014, FedEx and UPS increased their shipping prices by 3.9%. It was the last time in nearly a decade that the annual hike was this low. In 2015, it spiked to a 4.9% yearly increase, which stayed at a steady rate for seven years before COVID-19 hit. In 2022, in the aftermath of the global financial crisis triggered by the pandemic, prices went up to a record high of nearly 7% this year.
Next year’s price hike for the world’s largest shipping companies could be seen as a slight reprieve with an average of where it was last in 2022, as explained in the following graphs.
| 2015 – 2021 | 2022 | 2023 | 2024 | |
| FedEx | 4.9% | 5.9% | 6.9% | 5.9% |
| UPS | 4.9% | 5.9% | 6.9% | 5.9% |
Experts warn about a hefty 2024 hike
Experts have warned that as consumer demands decline, the price of deliveries will increase. There are still concerns about what could happen next year. Shippers are urged to start reworking their budgets to make way for more inflation-driven increases.
This was why this year’s hike of 6.9% for both UPS and FedEx took place.
Why increases are necessary
It is common practice to raise the costs of freight shipping. It is linked to carriers’ decisions. When they raise rates across trade routes, it triggers shipping rates. Carriers adjust their prices due to a supply and demand chain change.
According to Millie Tarallo, chief revenue officer at Dropoff, carriers are required by law to give shippers at least a month’s notice.
With a tight economy and more inflation pressuring the private sector, it remains to be seen if the annual increases would return to a steady 4.9% increase again.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
