2026 GRI Cheat Sheet
LJM Carrier Cliff Notes: SMALL PARCEL CARRIERS ANNOUNCE 2026 GENERAL RATE INCREASES (GRI)
UPS 2026 General Rate Increase: 5.9%
Effective December 22, 2025
UPS has recently announced a 5.9% average General Rate Increase (GRI) across Ground, Air, and International services. However, actual shipper costs will rise higher — often 7% to 12%—due to expanded dimensional rules and compounding surcharge hikes.
What’s Changing:
1. New Dimensional Triggers (Effective January 26, 2026)
UPS will apply both Length + Girth and Cubic Volume thresholds for: Large Package and Additional Handling Surcharges.
(To calculate cubic inches, multiply length × width × height (all in inches). Example: 10" × 5" ×4" = 200 in.)
· Large Package: Domestic Packages with a cubic size greater than 17,280 cubic inches
· Additional Handling: Domestic Packages with a cubic size greater than 10,368 cubic inches
This dual system captures more bulky or lightweight parcels—especially in e-commerce, furniture, and promotional goods.
2. Surcharge Increases Beyond 5.9%
Accessorials will rise above the headline rate, including:
· Additional Handling Surcharges: +6% to 7%
· Large Package Surcharges: +6% to 10%
· Residential/Delivery Area Surcharges: +6% to 8%
· Address Correction Fees: +7.4%
· Printer Rental Fees: +233% (from $3.00 to $9.99 per week)
Combined with the new cubic rules for these fees can compound and substantially elevate per-package costs.
3. Two-Phase Implementation
Dec 22, 2025: UPS General Rate increases take effect.
Jan 26, 2026: New dimensional surcharge criteria launch → Shippers will feel two separate cost jumps within 35 days.
Who’s Most Impacted:
· Higher- Zone Ground shipments (Zones 6–8)
· 2nd Day Air, 3 Day Select, and Air Saver
· Residential and Remote deliveries
· Lightweight, Large-volume International parcels
· Shipments at or near published minimum charges
Useful UPS Links:
FedEx 2026 General Rate Increase: 5.9%
Effective January 5, 2026
FedEx has announced a 5.9% average General Rate Increase (GRI) across Express, Ground, and International services. While this mirrors previous years' headlines, many shippers will experience true cost increases between 7 to 12%, driven by expanded dimensional rules and layered surcharge hikes.
What’s Changing:
1. New Cubic Volume Rule (Effective January 12, 2026)
For the first time, FedEx will use Cubic Volume in addition to traditional Length + Girth when determining eligibility for Oversize and Additional Handling Surcharges.
(To calculate cubic inches, multiply length × width × height (all in inches). Example: 10" × 5" ×4" = 200 in.)
· Oversize: Domestic Packages with a cubic size greater than 17,280 cubic inches
· Additional Handling: Domestic Packages with a cubic size greater than 10,368 cubic inches
This dual trigger captures more bulky or lightweight shipments—especially in e-commerce, furniture, and promotional goods.
2. Surcharge Increases Beyond 5.9%
Most common accessorials will rise well above the average:
· Additional Handling: +5% to 7%
· Oversize Charges: +6% to 10%
· Residential & Delivery Area: +6% to 8% (Residential +6.1% Express / +8.4% Ground)
· Adult Signature: +15.6%
· Clearance Fees: ~+4%
Layered together, these surcharges can significantly increase total cost per shipment.
3. International & Risk-Related Fees
Importers and global retailers face increased clearance and brokerage costs (9–11% overall impact).
· Dangerous Goods / Hazmat: +5% to 6%
· Declared Value Coverage: +~10%
High-value and regulated products will feel the steepest increases.
Why It Matters:
The 2026 General Rate Increase represents a structural shift, not just higher list rates:
· Cubic Volume + Length +Girth expands surcharge exposure.
· Dimensional Rounding (implemented August 18, 2025) means every fraction of an inch counts.
· Stacked surcharges make “average” rate increases misleading.
· FedEx moves ahead of UPS by implementing cubic rules first, adding complexity and compliance risk.
Who’s Most Impacted:
· E-commerce shippers: Higher residential, delivery-area, and signature fees
· Manufacturers /distributors: Bulky or irregular freight crossing cubic thresholds
· Importers & global retailers: Rising clearance and brokerage costs
Useful FedEx Links:
2026 FedEx Shipping Surcharges and Fees
As Carriers implement these pricing changes, now is the time to take a closer look at your shipping profile. The LJM team is here to help. Our consultants are actively tracking the details, modeling the potential cost impact, and working alongside our clients to shift strategies as needed.
Not sure how these updates may impact your business?
Reach out and our team will review your current shipping profile and provide tailored, strategic recommendations.
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