UPS announces 2026 GRI: 5.9% average increase but don’t miss the details
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5 minutes to read
UPS announced its 2026 General Rate Increase (GRI) of 5.9% on October 30. But be careful just reading the 5.9% headline, that “average” masks six key changes shippers need to understand:
1. Targeted increases in lighter weights
Packages weighing between 1 and 5 pounds will see these higher-than-average increases for key services:
Next Day Air Saver: +6.5%
2nd Day Air: +6.7%
2. Average increase across services and zones
Below are the details of the percentage increases by serviced and zone:
3. Good news? Surcharge moderation vs. 2025
The new Handling and Large Package increases are under 10% on average, but still higher than the GRI average but lower than the 20%+ average increase we faced last year. But with that moderation, it’s fair to ask and wonder: where will UPS make up the difference mid-year?
4. New Large Package Surcharge trigger
Not listed in the surcharge table above, is a new 110 lb actual-weight qualifier is being added on top of existing dimensional rules. Unclear who they are targeting here, but maybe UPS is expecting an influx of fire hydrant shippers (watch out Mueller Co.)?
5. DAS (Delivery Area Surcharge) ZIP realignment
UPS announced their standard ZIP realignment. As we analyze the detailed data, we expect to see UPS remove more ZIPs than they add by count, but unfortunately the ZIPs they add tend to be far more population-dense. Translation: DAS frequency (and with that shippers’ costs) usually goes up after these realignments—even if the list looks “smaller.”
6. Zone & ZIP alignment changes
Another wave of distribution center closures and zone changes are also hidden inside the details. With network consolidation and center closures, it’s critical that you review and understand high-density delivery ZIPs. A former Zone 3 could become Zone 4, quietly raising costs.
All these changes landed after a positive quarterly earnings report, so we’re all asking what comes next.
Free expert GRI analysis available from Loop
The complexity of the 2026 GRI makes it clear that a proactive, data-driven strategy is essential. Traditionally, accessing the level of parcel expertise required to build such a strategy involved significant and costly consulting engagements. At Loop, our parcel experts, Matt Sumowski and Paul Yaussy, are changing that by offering initial GRI analysis free of charge.
The free analysis includes:
Detailed breakdown of GRI impact specific to the shipper's network
Rate target identification by service level and zone
Contract language review including amendment and termination clauses
Strategic guidance on negotiation timing and approach
If you want a read on what this means for your network, grab time with our team and we’ll walk your data line-by-line.
Interested in a free GRI analysis with industry experts? Contact us today.
Turn your data into a competitive advantage
The 2026 General Rate Increases, from both FedEx and UPS, are a masterclass in strategic pricing, where the headline serves to mask a far more intricate and impactful reality. In this environment, shippers face a critical choice: absorb these escalating costs or take control.
Success in 2026 will be defined by two key capabilities:
Strong data foundation: First is the ability to understand your own data with meticulous detail. You must move beyond averages to see precisely how these changes affect your unique shipping profile, your budget, and your customers. This is exactly what Loop’s AI-native platform, trained on millions of logistics documents, does better than anyone, providing a detailed and accurate data foundation for modern business intelligence.
Trusted partner: Second is the need to partner with trusted, experienced experts who can help you interpret that data, identify opportunities for optimization, and build a winning strategy for carrier negotiations and network design.
By combining a world-class data platform with industry-leading expertise, Loop provides the comprehensive solution shippers need to not only mitigate the impact of the 2026 GRI but to turn their transportation data into a true competitive advantage. Contact us today.
