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Small parcel carrier rates (GRI) to increase in January 2009

November 13, 2008

Parcel carrier rate increases have been announced. The major small parcel carriers appear to be bracing for reduced volumes and potentially increased costs of doing business. At this point it is unclear how these prices will be impacted by the recent crude oil price decreases. [Update on 11/25/08: There are reports of UPS and FedEx reducing Fuel Surcharges for the holidays.]

For the first time, the U.S. Postal Service will be adjusting pricing for its shipping service at a different time than its mailing service. Effective January 18th the USPS will raise rates on its Parcel Select by 5.9%, Express Mail by 5.7%, Priority Mail by 3.9% and International shipping by 8.5%.

UPS has also recently published 2009 rates with many increases. UPS Ground rates will increase on average 5.9%, Air and International services will be increased 4.9% that consists of a 6.9% rate increase and a 2% fuel surcharge reduction. If history is any guide, there may be further changes to fuel surcharges after the rate increases take effect.

These two rates come on the heels of FedEx rate increases in September. FedEx Express rates will increase by 6.9% in January. To date, we have not seen the new pricing table for FedEx ground 2009 rates.

This is on top of DHL exiting the U.S. shipping market.

Shipwire order fulfillment provides an alternative to carrier pricing increases. Let us help you distribute inventory around the world and fulfill purchases to buyers from local warehouses. True shipping cost savings.

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.