January 2024 USPS, FedEx and UPS Shipping Rate Increase

It's time to prepare for a Shipping Rate Increase in January.

The three major carriers, USPS®, FedEx®, and UPS®, are all set to adjust their shipping prices. In this article, we'll delve into the details of these shipping rate adjustments, identify the affected services, provide insights into the new rates, and share valuable tips on how to mitigate the impact on your shipping budget.

USPS®: Changes Effective January 21, 2024

The United States Postal Service (USPS) is gearing up for a series of changes in the new year. As previously announced, the USPS is scheduled to increase the prices of several of its mailing products on January 21, 2024. In addition to these changes, the postal service has outlined price adjustments for its shipping products.

Here's what you need to know:

• USPS Ground Advantage: Expect a 5.4% increase in rates for this service.
• Priority Mail Services: Brace for a 5.7% increase in pricing.
• Priority Mail Express: Prices for this expedited service will undergo a 5.9% hike.

Moreover, USPS is considering modifications to Special Services products, including Post Office Box rental fees and certain international mail services like Registered Mail and International Mail insurance. 

Read more on the USPS website >>

Read more about the 2024 USPS mailing rate increase >>

FedEx®: Changes from January 1, 2024

FedEx is also joining the league with adjustments to its rates and services:

• Rate Adjustments: FedEx Express, FedEx Ground, and FedEx Freight rates will see an average increase of 5.9%
• Shipping Surcharges and Fees: Expect adjustments that may impact the overall cost of your shipment.
• FedEx One Rate: Changes are on the horizon for this service.

Learn more on the FedEx website >>

UPS®: Changes Effective December 26, 2023

• Average Increase: UPS® Ground, UPS Air, and International services will witness an average net increase of 5.9%.
• UPS SurePost and Small Business Rates: These services will experience increases, showcasing the broad scope of rate adjustments from UPS.
• Additional Handling Fee: International packages weighing 55 pounds or more will incur an additional handling fee.
• Small Business Rates: For UPS® Ground, UPS Air, and International services, small business rates are also slated for an increase.

Learn more on the UPS Website >>

Tips to Save on Shipping:

In the face of these impending rate hikes, it's essential to strategize and minimize the impact on your shipping budget. Consider these tips:

• Rate Shop: Compare the prices of different carriers and services in order to see your options, so you get the best price for your shipments and make the best decision for your budget. You can use software to help you.
• Negotiate Contracts: Reach out to your carrier representatives to negotiate contracts and potentially secure more favorable rates.
• Optimize Packaging: Efficient packaging can lead to lower shipping costs. Consider optimizing your packaging to reduce dimensional weight charges.
• Optimize Service Levels: You might be able to use a different service level and still get your envelopes and packages to their destinations on time! Reviewing your invoices and exploring similar services may even help you reduce costs so you beat the rate increases.

As always, we will continue to monitor all developments and provide you with the latest news. Stay updated on the latest mailing, shipping, and postage rate news by subscribing to our newsletter mailing list here. 

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