What Is the GRI?
The General Rate Increase (GRI) is an annual rate adjustment that UPS and FedEx announce every September/October and implement every January. It affects published rates for all services.
The headline GRI number — typically announced as 5.9% for 2026 — is an average. The actual increase varies by service, weight band, and zone.
GRI vs. Effective Rate Increase
The headline GRI number understates the actual cost increase for most shippers because it only covers base rates. Simultaneously, carriers also increase:
| Component | Also Increases? | Effect |
|---|---|---|
| Base rates | ✅ (the GRI itself) | 5.9% average |
| Surcharge amounts | ✅ (separately) | Often higher than GRI % |
| DIM divisor | Sometimes changes | Can increase DIM weight |
| Minimum charges | ✅ | Higher floor pricing |
| Service features | May change | Service downgrades possible |
The Real Impact
When you combine base rate increases, surcharge increases, and DIM changes, the effective rate increase is typically:
| Headline GRI | Effective Increase | Difference |
|---|---|---|
| 5.9% | 7–10% | +1–4% hidden increase |
How GRI Works with Your Contract
Published Rate + Discount Model
Most carrier contracts define your rate as: Published Rate × (1 – Discount%)
When the GRI increases published rates by 5.9%, your dollar discount stays the same percentage but the absolute cost increases:
Example: 50% Ground discount
- 2025 published rate: $20.00 → You pay $10.00
- 2026 published rate: $21.18 (5.9% increase) → You pay $10.59
- Your effective increase: 5.9% (same as GRI)
The discount percentage stays the same, but you pay more in absolute dollars.
Rate Cap Provisions
Some contracts include a rate cap that limits annual increases:
- “Annual increases shall not exceed X% on any single service”
- “Base rate increases capped at CPI + 2%”
- “Surcharge increases limited to published GRI percentage”
Rate caps are one of the most valuable contract provisions — negotiate for them.
Historical GRI Trends
| Year | UPS GRI | FedEx GRI |
|---|---|---|
| 2020 | 4.9% | 4.9% |
| 2021 | 4.9% | 4.9% |
| 2022 | 5.9% | 5.9% |
| 2023 | 6.9% | 6.9% |
| 2024 | 5.9% | 5.9% |
| 2025 | 5.9% | 5.9% |
| 2026 | 5.9% | 5.9% |
Both carriers have matched each other’s GRI every year for over a decade. The rate is set by the first mover (typically UPS) and immediately matched by the other.
How to Mitigate GRI Impact
1. Renegotiate Before January
If your contract doesn’t include rate caps, renegotiate in Q4 to lock in better discounts before the GRI takes effect.
2. Optimize Service Mix
Shift volume from premium services to lower-cost alternatives where delivery speed allows.
3. Right-Size Packaging
If the GRI includes DIM divisor changes, review your packaging to minimize DIM weight impact.
4. Add Rate Caps to Your Contract
The most effective long-term protection. Even a cap of “GRI or CPI + 2%, whichever is lower” provides meaningful savings in years of high GRI.
5. Audit Post-GRI Invoices
After January 1, verify that:
- Discounts are correctly applied to new rates
- Minimums haven’t changed unexpectedly
- Surcharges haven’t increased beyond what was announced
The Bottom Line
The GRI is predictable (annually, every January) and consistent (5–7% in recent years). The real risk isn’t the headline number — it’s the hidden increases in surcharges, minimums, and DIM changes that can push actual cost increases well above the advertised GRI. Protect your margins with rate caps and Q4 renegotiations.
Upload one invoice to ShipMint’s Instant Analysis to model how the GRI affects your specific rates — free.