Dear Parcel Shipper,

Over the past decade (2008-2018), UPS and FedEx ground tari� rates have increased 76.6% while air tari� rates have

increased 84.2%. As usual, these numbers do not take into account the accessorial increases or the impact of the

dimensional weight changes both carriers continuously make.

What are you doing to o�set this year’s increase?

This document summarizes the UPS and FedEx General Price Increase (GPI) for 2018.

How do these changes a�ect your bottom line? Of course, the impact to you will vary according to your specific shipping

profile (e.g. service level usage, zone density, etc) and distribution model. If you’d like to discuss strategies to help mitigate

the increases, please contact us.

Best wishes in 2018.

Cheers,

Jared Fisher

Executive Vice President

Lojistic

UPS

E�ective Date:December 24, 2017

Avg. Air Increase4.9%

Avg. Ground Increase4.9%

FedEx

E�ective Date:January 1, 2018

Avg. Air Increase4.9%

Avg. Ground Increase4.9%

2018 Carrier Rate Increase

76.6%HAVE INCREASEDOVER THE PAST DECADE

GROUND SHIPPING RATES

84.2%HAVE INCREASEDOVER THE PAST DECADE

AIR SHIPPING RATES

* *

*combined UPS & FedEx average

AIR PRICE INCREASE YEAR TO YEAR

GROUND RESIDENTIAL FEE

GROUND PRICE INCREASE YEAR TO YEAR

$4.00

$3.00

$2.00

$1.00

$0.00

2009

$2.05

2008

$1.95

2010

$2.20

2011

$2.45

2012

$2.55

2013

$2.80

2014

$2.90

2015

$3.10

2016

$3.25

2017

Annual Carrier General Price Increase

4.9% 20172017 2017 4.9% 20174.9% 3.9%

4.9% 2010

5.9% 2011

5.9% 2012

5.9% 2013

4.9% 2014

4.9% 2015

4.9% 2016

4.9% 2008

5.9% 2009

6.9% 2010

6.9% 2011

6.9% 2012

6.5% 2013

4.9% 2014

2016

4.9% 2015

6.9% 2008

6.9% 2009

5.9% 2010

5.9% 2011

5.9% 2012

5.9% 2013

3.9% 2014

2016

4.9% 2015

6.9% 2008

6.9% 2009

4.9% 2010

5.9% 2011

5.9% 2012

5.9% 2013

4.9% 2014

4.9% 2016

4.9% 2015

4.9% 2008

5.9% 2009

5.2% 4.9%

UPSUPS FedEx FedEx

4.9% 20182018 2018 4.9% 20184.9% 4.9%

$3.40

UPS

$3.45

FedEx

2018

$3.60

UPS

$3.60

FedEx

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GROUND COMMERICAL MINIMUM CHARGE

$8.00

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$0.00

GROUND RESIDENTIAL MINIMUM CHARGE

$12.00

$11.00

$10.00

$9.00

$8.00

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$0.00

Annual Carrier General Price Increase

2008

$4.20

2009

$4.57

2010

$4.84

2011

$5.17

2012

$5.49

2013

$5.84

2014

$6.24

2015

$6.62

2016

$6.94

2017 2018

$7.32

UPS$7.25

FedEx

$7.57

UPS

$7.58

FedEx

2008

$6.15

2009

$6.62

2010

$7.04

2011

$7.62

2012

$8.04

2013

$8.64

2014

$9.14

2015

$9.71

2016

$10.19

2017 2018

$10.72

UPS

$10.70

FedEx

$11.17UPS

$11.18FedEx

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E�ective December 24, 2017 (UPS) & January 1, 2018 (FedEx), the carriers will implement another costly general price increase for small

parcel shippers. In addition to the service level rate increases, this year’s changes impact a wider range of packages as both carriers

have further adjusted weight-to-size related charges and made significant increases to other accessorial surcharges. As an example,

FedEx announced that, e�ective January 22, 2018, it will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost

packages. UPS also announced that the DIM factor on packages measuring less than one-cubic foot will decrease from 166 to 139.

See below for information on specific charges.

2018 | Summary of Carrier Rate Increase

UPS - E�ective December 24, 2017

UPS Ground: Ground rate increase was announced at 4.9%. Important changes include:• Ground Commercial Minimum Charge: Increase of $0.25 (3.4%) from $7.32 to $7.57• Ground Residential Minimum Charge: Increase of $0.45 (4.2%) from $10.72 to $11.17

UPS Air & International: Air & International rate increase was announced at 4.9%

Surcharge & Accessorial Changes:• Air Residential: Increase of $0.15 (3.8%) from $4.00 to $4.15• Ground Residential: Increase of $0.20 (5.9%) from $3.40 to $3.60• DAS Commercial Ground: Increase of $0.30 (12.2%) from $2.30 to $2.60• DAS Commercial Air: Increase of $0.30 (13%) from $2.45 to $2.75• DAS Commercial Ground Extended: Increase of $0.20 (8.3%) from $2.40 to $2.60• DAS Commercial Air Extended: Increase of $0.20 (7.8%) from $2.55 to $2.75• DAS Residential Ground: Increase of $0.25 (7.7%) from $3.25 to $3.50• DAS Residential Air: Increase of $0.25 (6.6%) from $3.80 to $4.05• DAS Residential Ground & Air Extended: Increase of $0.25 (6.0%) from $4.20 to $4.45• Delivery Signature (Signature Required): Increase of $0.25 (5.6%) from $4.50 to $4.75• Delivery Confirmation Adult Signature Required: Increase of $0.25 (4.5%) from $5.50 to $5.75• Address Correction Fee: Increase of $2.50 (18.7%) from $13.40 to $15.90• Additional Handling Surcharge: Increase of $1.15 (10.6%) from $10.90 to $12.05• Large Package Surcharge: Increase of $10.00 (14.3%) from $70.00 to $80.00 • Over Maximum Limits Charge Charge: Increase of $350.00 (233.3%) from $150.00 to $500.00 • DIM Divisor: Packages less than or equal to 1,728 cubic inches will decrease from 166 to 139 divisor

FedEx - E�ective January 1, 2018

FedEx Ground: Ground rate increase was announced at 4.9%. Important changes include:• Ground Commercial Minimum Charge: Increase of $0.33 (4.6%) from $7.25 to $7.58• Ground Residential Home Delivery Minimum Charge: Increase of $0.48 (4.5%) from $10.70 to $11.18

FedEx Air & International: Air & International rate increase was announced at 4.9%

Surcharge & Accessorial Changes:• Express & Ground Residential: Increase of $0.30 (7.8%) from $3.85 to $4.15• Home Delivery Fee: Increase of $0.15 (4.3%) from $3.45 to $3.60• DAS Commercial Express (includes Extended): Increase of $0.10 (3.8%) from $2.60 to $2.70• DAS Commercial Ground (includes Extended): Increase of $0.10 (4.1%) from $2.45 to $2.55• DAS Residential Express & Ground: Increase of $0.10 (2.6%) from $3.90 to $4.00• DAS Residential Home Delivery: Increase of $0.10 (3.0%) from $3.35 to $3.45• DAS Residential Extended (Express & Ground): Increase of $0.20 (4.8%) from $4.20 to $4.40• Address Correction Fee: Increase of $1.00 (7.1%) from $14.00 to $15.00• Additional Handling Surcharge: Increase of $1.00 (9.1%) from $11.00 to $12.00• Delivery Signature (Signature Required): Increase of $0.25 (5.6%) from $4.50 to $4.75• Delivery Confirmation Adult Signature Required: Increase of $0.25 (4.5%) from $5.50 to $5.75• Oversize Charge: Increase of $7.50 (10.3%) from $72.50 to $80.00

2018 Carrier Rate Increase

UPS & FedEx Rates Calculator

This UPS and FedEx shipping cost calculator

will help identify the lowest-cost shipping option.

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Compare UPS & FedEx rates side by side to

see where you can save money.

UPS & FedEx Rates Comparison Tool

It is important to understand that the announced rate increases are only averages and the impact to your company could vary greatly.

If you would like to find out how this will a�ect your company and to discuss strategies to help mitigate the increases, please contact us.

And as an added bonus we created some calculators that have these 2018 increases in them to help you determine the impact they will have on your 2018 shipping costs.

CREATE A CUSTOM RATE SHEET NOW

(800) 783-5753 bryan.vs@lojistic.com