The price of shipping packages has skyrocketed over the years, with the cost of ground shipping for both FedEx and UPS having grown 79.2% and air shipments 95.5% over the past decade, according to Lojistic, a transportation software vendor. A couple years ago, USPS increased their Priority Mail prices by about 25%. As of today, the 3 primary couriers have announced their price increases for 2017. Let’s see what this means for you.
USPS Price Increase 3.9% Average – Effective January 22, 2017
USPS has announced that they will be increasing prices starting January 22, 2017. USPS generally reviews and updates their prices twice a year. The January price increase will not affect any international services, including First-Class Package International Service, Priority Mail Express International and Priority Mail International. There will be an average increase of approximately 3.9% for Priority Mail, compared to an generate rate increase of 4.9% for both FedEx and UPS.
UPS Price Increase 4.9% Average – Effective December 26, 2016
UPS has announced that it would increase rates for UPS Ground, Air, and International services by an average of 4.9% starting December 26, 2016. In addition, the additional handling charges will now be assessed for UPS Air and International packages with the longest side exceeding 48 inches instead of 60 inches.
FedEx Price Increase 3.9 – 4.9% Average – Effective January 2, 2017
FedEx has announced that it would increase rates by an average of 4.9% for FedEx Ground and Home Delivery and an average of 3.9% for FedEx Express for domestic and international services.
Additionally, FedEx will change the way they calculate dimensional weight. Currently, it is calculated using a denominator of 166, but this will change to 139 next year. This is in line with UPS dimensional weight calculations.
Tips for 2017 Shipping
Due to the dimensional weight changes, be mindful of the items you’re looking to ship. Consolidate and ship items with similar sizes together will help to fill up the package compared to shipping packages that are very different in sizes. If dimensions are an issue, USPS may be a better choice for shipping. For more reliable shipping, you can upgrade to USPS Priority Express, which will give you better tracking and faster delivery compared to USPS Priority Mail.
Additionally, we have also discovered that UPS Standard ground service to Canada and Mexico has almost doubled in price compared to past shipments. For those who used to ship to Canada/Mexico using ground will notice a large difference in the pricing.
At Virtual Post Mail, when you create shipments to forward your packages, we always do our best to find the smallest box that will fit your items so you end up with the lowest dimensional weight calculation. This is best done when items are of similar sizes. If some items are longer while others are thicker, then you may end up paying for higher prices with UPS and FedEx due to the dimensional weight calculation. In these cases, you may want to stick with USPS where dimensional weight is not used.