We know your head’s still in the holiday shipping mindset, but we wanted to let you know about some of the shipping rate increases that USPS, FedEx and UPS are implementing in the new year.
Wondering what the following changes mean for your business? As with any rate increase, this serves as a wonderful opportunity to review your shipping strategy to ensure you’re getting the best possible rates. ShipWorks will continue to provide the lowest rates available and automatically update the new rates into our software.
Here’s a rundown of some of the changes going into effect next year:
FedEx plans to implement the following rate increase and changes to products and services on Jan. 2, 2017:
- FedEx Express package and freight standard list rates will increase an average of 3.9 percent for U.S., U.S. export and U.S. import services.
- FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9 percent.
- FedEx International Premium, FedEx Ground Multiweight and FedEx SmartPost rates will change.
- Minimum rates for FedEx Express services will change.
Also changing on Jan. 2 is the dimensional weight (DIM) divisor for FedEx Express and FedEx Ground packages from 166 to 139. On and after that date, DIM weight for all shipments within the U.S. and FedEx Express shipments between the U.S. and Puerto Rico will be calculated by multiplying the length by width by height of each package in inches and dividing the total by 139.
There are also fuel surcharge changes you’ll want to know about. Effective Feb. 6, the FedEx Express and FedEx Ground fuel surcharge percentage will be subject to weekly adjustment instead of the current adjustment on a monthly basis.
Learn more about all of FedEx’s scheduled changes here.
The published rates for UPS services will increase on Dec. 26, 2016. Changes include:
- 9 percent average net increase in UPS Ground service daily rates
- 9 percent average net increase in UPS Air and International services daily rates
- 9 percent average net increase in UPS Air Freight rates within and between the U.S., Canada and Puerto Rico
As with FedEx, UPS is making changes to its dimensional weight calculation. Effective Jan. 8, U.S. domestic services packages that are greater than 1,728 cubic inches will use a 139 divisor to calculate dimensional weight. U.S. domestic services packages less than or equal to 1,728 cubic inches will continue to use a 166 divisor. All UPS Standard from Canada import shipments will use a 139 divisor to calculate dimensional weight as of Jan. 8.
UPS, like FedEx, is also making changes to its fuel surcharge process—effective Feb. 6, 2017, U.S. fuel surcharge will be adjusted weekly. Also effective on Feb. 6, the U.S. Import fuel surcharge percentage will increase and be assessed independently of U.S. Air and Export fuel surcharge.
Learn more about UPS rate changes here.
The Postal Regulatory Commission (PRC) approved on Nov. 18 the United States Postal Service’s proposed rate changes for Competitive Products, set to go into effect on Jan. 22, 2017. Here’s an overview of the Postal Service’s average percent price increase by product or category:
What’s not changing? Pricing remains the same for Priority Mail International, First-Class Packages International and Priority Mail Express International Service.
Find a copy of the PRC’s complete ruling here, complete with rates: http://www.prc.gov/docs/97/97886/Order%20No.%203622.pdf