FedEx and UPS had a challenging fiscal quarter, as both carriers reported year-over-year revenue declines during recent earnings calls.

The new year is here, which means the annual general rate increase for FedEx and UPS are now in effect. While the overall increase to base rates is lower than the previous year’s, recent trends around faster-rising surcharges and the extension of “peak season” continue into 2024.

UPS national contract negotiations began this month between company leadership and the Teamsters union that represents its workers. Read on to learn more about what’s happening, what’s at stake — and how you can prepare.

Peak surcharges for UPS and FedEx are here to stay well into the new year. Instead of being allowed to expire as holiday demand fades, these additional charges remain “until further notice,” both carriers have announced.

While we expect yearly rate increases from FedEx and UPS, the 2023 hikes are (once again) the highest ever announced.

Learn more about how the rate increases will affect you — and how you can prepare.