January 2025 USPS®, FedEx® and UPS® Shipping Rate Increase

Webinar alert: If you’re looking for more in-depth information on the 2025 rate changes, don’t miss our upcoming webinar! Join our experts on January 22, 2025 to get all the details. Register here!

2025 Rate Changes for all 3 Major Carriers

It’s a new year and that means new shipping prices. You may have already noticed changes over the past few weeks.

All three major carriers will be raising prices on shipping services. The good news is First Class mail is not changing! Parcel rates are a bit of a rollercoaster ride, though. Peak surcharges are being phased out while new pricing gets phased in. Let's break it down:

USPS®: Changes Effective January 19, 2025

New pricing for shipping services go into effect on January 19, 2025. The change raises Shipping Services prices as follows:

• Priority Mail service and Priority Mail Express service: 3.2%
• USPS Ground Advantage: 3.9%
• Parcel Select: 9.2%

Again, the Postal Service will not be raising pricings for Mailing Services at this time. This means the price of a First-Class stamp remains unchanged.

View the full USPS rate file here >>

FedEx®: Changes Effective January 6, 2025

This year, FedEx will roll out their pricing over the course of several weeks. First, a 5.9% General Rate Increase (GRI) will go into effect on January 6, 2025. This will apply to FedEx Express, FedEx Ground, and FedEx Freight. Here are some additional changes to expect:

Effective January 6, 2025:

• Package and freight rates will increase
• Changes to shipping surcharges and fees
• FedEx Logistics base customs brokerage rates will increase by 4%

Effective January 13, 2025:

• All U.S. and international packages that meet the criteria of Additional Handling Surcharge – Dimension will be subject to a 40-lb. minimum billable weight.
• There will be changes to the Delivery Area Surcharge ZIP code lists for FedEx U.S. package services.

Effective January 20, 2025:

• FedEx One Rate pricing will increase

View the full FedEx rate file here >>

UPS®: Changes Effective December 23, 2025

UPS announced an increase of 5.9% to match rival FedEx’s General Rate Increase (GRI). This new pricing for went into effect earlier on December 23, 2024 and applies to UPS Ground, UPS Air, and International services.

Other services seeing changes:

• UPS pricing for SurePost® will go into effect January 13, 2025.
• Additional Handling charge of $15.65 per package
• Large Package Surcharge – Minimum Billable Weight (MBW) of $67.90 per package

View the full 2025 UPS rate file here >>

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. 

Unlock the Best Rates, Get Advanced Tracking, and Print Labels Fast with Neoship

Neoship is the must-have multi-carrier shipping software for small and medium-sized businesses. Take time-consuming guesswork out of your day-to-day shipping and turn your postage meter into an all-in-one solution. 

START SHIPPING >>