If you are wondering why your shipping spend seems to climb every January, this is because major carriers like UPS and FedEx impose an annual General Rate Increase (GRI).
This can look like a modest percentage hike, but when combined with surcharges, minimums, and zone-based pricing, the true impact can be noticed. In our blog post, we will explain what exactly GRI is and how understanding this can help businesses reduce the shock of rising shipping costs.
What is a GRI?
A General Rate Increase is the annual adjustment to a carrier’s base shipping rates. These rate changes are applied to published pricing tables, which vary based on:
- Package weight
- Shipping zone (distance)
- Service level (Ground, Express, etc.)
While carriers announce a percentage increase, that number is an average – not every zone or service increases equally. Some routes and services may exceed the stated percentage, while others may rise less.
GRI Rates Over the Years (UPS & FedEx)
| Year | Announced GRI |
| 2025 | 5.9% |
| 2024 | 5.9% |
| 2023 | 6.9% |
| 2022 | 5.9% |
| 2015–2021 | 4.9% annually |
GRI = Total Cost Increases
It’s important to know: GRIs apply only to transportation rates. They do not include:
- Fuel surcharges
- All Surcharges (Delivery area surcharges, Residential fees, Additional handling, but to name a few)
Surcharges Are Rising Even Faster
In 2025, carriers announced surcharge increases up to 27% for some fees. These surcharges often added after the base rate can quietly double the true cost of shipping.
What GRI means for Your business?
The true impact of GRI can be higher on your shipping bills depending on several factors:
- Package Characteristics: Compared to regular ground shipment, the increases for express and international services are typically higher.
- Surcharges: Often rising in conjunction with base rate hikes are accessorial costs such as residential delivery fees, delivery area surcharges, and fuel surcharges.
- Zones: Compared to regular ground shipment, the increases for express and international services are typically more pronounced.
How nVision Global Can Help?
Our small parcel experts monitor carrier rate increases, model your true cost exposure, and help you respond with:
- Smart contract negotiation.
- Service and zone mix optimization.
- Surcharge mitigation strategies.
- Year-over-year spend visibility.
Dealing with big carriers inevitably involves annual general rate increases, but you don’t have to be caught off guard by the effects. You can take proactive measures to safeguard your margins by being aware of how surcharges and GRIs combine to increase your expenses.
At nVision Global, we provide the tools, insights, and expertise to help you stay ahead of these rising expenses. From negotiating smarter contracts to optimizing your shipping strategy, our team ensures you’re not paying more than you need to.
Don’t let hidden increases shrink your margin. Let us help you get ahead of the next GRI. Talk to a Parcel Strategy Expert.