UPS Rates Increase 5.9% During Peak Holiday Season

October 12, 2024

UPS Rate Increase December 23rd by 5.9%. Just in time for holiday peak season.

UPS has announced that its 2025 rate increase will take effect on December 23, 2024, just in time for the holiday season. The General Rate Increase (GRI) will average 5.9%, marking a significant adjustment for shippers.


Among the most impactful changes are the updates to the Large Package Surcharge (LPS) and the Additional Handling Charge (AHC):


  • Effective January 27, 2025:
  • The Large Package Surcharge (LPS) will now be calculated based on revised criteria, factoring in the length, weight, or cubic volume of shipments, whichever results in the higher surcharge.
  • The Additional Handling Charge (AHC) will shift from the traditional length plus girth measurement to a cubic volume calculation. However, other existing factors determining AHC will remain unchanged.


This is the first time in recent memory that UPS has implemented a rate increase before Christmas, which means businesses will feel the effects earlier than usual. The changes will likely lead to higher shipping costs for customers while boosting UPS's revenue.

If you're concerned about how these changes will impact your shipping expenses, Mindful Logistics can help.


Contact us for a free analysis to understand how these rate increases will affect your business and how you can mitigate these costs before the new rates take effect in just over 60 days. Also read 2025 Fedex rate increase Here.


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