OUR BLOG

Deliver exceptional buyer experiences every order, every day, everywhere

FULFILLMENT
Fedex, USPS and UPS Shipping Cost Increases 2013 (GRI)

January 8, 2013

The carriers have a holiday gift for all their loyal shipping customers – rate increases.

Just like last year, and 2011-10, and (2009), and…wait for it…2008.

It's the same dance every year

Step 1: Announce rate increases in January, with very small discount in fuel surcharge.

Step 2: Sometime between May and June, eliminate the fuel surcharge discount when summer comes. Effectively claw back the fuel surcharge “discount” earlier in the year and hope nobody notices that the fuel surcharge will actually increase for the year (hint…we notice).

Bonus Step 3: Hope everybody forgets by the holiday season so next years rate hikes can be announced (usually in November) and the dance can start over.

How do you reduce costs?
Years ago, we wrote a missive on how to cut your shipping costs, that is still accurate. A few year's later we wrote about tactics to
reduce shipping costs.

Here are the rate increases this year:
This year UPS and Fedex are increasing ground parcel shipping rates by on average 4.9%.

Internet Retailer, summed it up nicely:

"…that the lighter the package, the higher the rate increase. And because most online retailers ship packages of 30 pounds or less, their average rate increase will run higher than 4.9%… “Overall, most e-commerce retailers will have a rate increase of about 7% or 8%,” he says. For shipments forwarded by UPS and FedEx to the United States Postal Service for local residential deliveries under the USPS’s Parcel Select program, the USPS is increasing shipping rates by about 9%, effective Jan. 27, the USPS says.

In addition, UPS and FedEx are increasing for 2013 surcharges and accessorial fees, such as surcharges for delivering to residential addresses and fees for handling packages with incorrect address labels. …UPS and FedEx will impose a surcharge of $2.80 for delivering to a residential address, up about 10% from $2.55 in 2012. The shipping carriers also tack on additional surcharges for residential addresses in remote areas. Other surcharges in 2013 will include $12 for correcting an address, up from $11 in 2012

UPS will also increase its rates for air and international shipments by 6.5%, which will drop to 4.5% with a two percentage point reduction in the fuel surcharge.

At FedEx, air shipments via FedEx Express will rise by an average of 3.5% after decreases in fuel surcharges, the company says."

More links

  • UPS 2013 rate increase change end of December 2012
  • Fedex 2013 rate increase change in January 2013
  • USPS 2013 rate increases change in January 2013
  • Nate Gilmore

    Nate is the Vice President of Marketing & Business Development at Shipwire. He oversees channel development and the developer network, as well as our marketing and public relations. Previously, Nate spent six years at Concentric (acquired by XO Communications), where he ran product management, sales, and marketing. Nate has also held various legal positions in intellectual property and business law. He holds a B.A. in History and a J.D. from Santa Clara University.