If you regularly ship packages with UPS or FedEx, you may have heard the term “GRI” or “General Rate Increase.” This is a fee that is applied by both carriers on an annual basis, and it can significantly impact your shipping costs.

So, what exactly is the GRI and how does it affect your business? Let’s take a closer look.

What is the GRI?

The GRI, or General Rate Increase, is an annual adjustment to shipping rates that is applied by both UPS and FedEx. It is typically announced in the fall, and the new rates take effect at the beginning of the new year. The GRI applies to all shipping services, including ground, air, and international shipments.

The purpose of the GRI is to help carriers keep up with rising operating costs, such as fuel prices, labor costs, and technology investments. It also allows carriers to invest in new services and technologies that can improve the shipping experience for customers.

How does the GRI impact your shipping costs?

The GRI can have a significant impact on your shipping costs, especially if you ship a large volume of packages. The exact amount of the increase varies from year to year and may differ between UPS and FedEx. For example, in 2022, UPS announced a GRI of 5.9% for domestic shipments, while FedEx announced a GRI of 4.9%.

To put this into perspective, let’s say you typically ship 1,000 packages per month with UPS, and the average cost of each package is $10. With a 5.9% GRI, your shipping costs would increase by $590 per month or $7,080 per year.

How can you mitigate the impact of the GRI?

While you can’t completely avoid the GRI, consulting with one of our parcel experts can help your bottom significantly by lowering your shipping spend and optimizing your shipping methods. Contact us today!

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