On top of the recently announced UPS general rate increase which included a 1% increase in the fuel surcharge table across all thresholds, UPS has just announced another bump of 1%, effective January 3rd, 2022. This is on top of the November 15th increase that already took place, totaling four increases now in the course of a year.
This is unprecedented in the industry and is evidence of UPS leveraging shippers to their advantage. The market largely misunderstands that fuel table changes have little to do with fuel prices, and when table changes are made the carrier simply updates their website, erasing the previous table change history and posts the new table.
It is effectively like doing small rate increase throughout the course of the year multiple times so that the end of the year they have really applied two increases within one calendar year. UPS is not acting alone as it is anticipated FedEx will also follow shortly.
The end game here is that UPS and FedEx are using the LTL and truckload fuel surcharge as the high watermark for the industry and will continue to adjust their tables until they are within striking distance of the trucking fuel surcharges.
Shippers, has UPS communicated these changes to you, and why do they not discuss them as being related to the GRI?