How to Beat FedEx and UPS Carrier Rate Increase 2024
Stay ahead of the 2024 Rate Increase for Major Shipping Carriers with our overview of the latest rate hikes in the package shipping industry. Review the 2024 shipping Rate increase for Major Shipping Carriers: Dates, Averages & Highlights. Stay informed with effective dates and average increases. Although, while these rates are general rate increases, your specific shipping mix, and negotiated rates may differ. Don’t miss out on the vital information you need to navigate the changing landscape of shipping rates.
Significant Changes 2024 Carrier Shipping Rate Increase:
UPS and FedEx, the industry leaders in package delivery services, are implementing an average rate increase of 5.9% on their shipping services. Starting on December 26 for UPS and January 1 for FedEx and USPS, customers can expect to see increases in shipping costs.
The recent 2024 Carrier Shipping Rate Increase of 5.9% at FedEx and UPS may seem modest, although it is important to note that this increase represents an average. The actual price hikes that shippers will experience can greatly differ based on various factors related to each delivery’s shipping characteristics. These characteristics include but are not limited to:
Weight Increases Factors
Weight and dimensional weight: When it comes to shipping rates, it is important to note that larger, heavier packages will usually experience higher increases compared to lighter parcels.
Shipping Zones: Shipping costs will vary based on the distance traveled, as carriers use “zones” to determine rates. Longer distances will result in higher rate increases compared to shorter-distance deliveries. Chicago Fulfillment Services is located in the Midwest and averages much shorter distances (better zones) to most areas of the country versus fulfillment services that are located on the East Coast or West Coast
Additional surcharges: e-commerce retailers must also take into account additional surcharges and assessorial charges. These fees, which are not included in the carriers’ base rates, will also experience increases in 2024. FedEx and UPS impose additional charges for large and oversized packages, fuel surcharges, rural area charges, residential delivery charges, and more. When shipping products to your customers you will need to factor in these added fees when considering shipping options.
| Carrier | Start Date | Avg. Increase |
| UPS | December 26, 2023 | 5.9% |
| Fed Ex | January 21, 2024 | 5.9% |
| USPS | January 21, 2024 | 4.5% (Selective services) |
FedEx Rate Increase for 2024:
Starting January 1, 2024, FedEx will implement a rate increase across all their services. On average, the rates will be going up by 5.9%.
UPS Rate Increase for 2024
Effective December 26, 2023, UPS will implement a rate increase across all their services. On average, the rates will be going up by 5.9%.
USPS Rate Increase for 2024
- Ground Advantage will see an average increase of 3.7%.
- Parcel Select for 2-9 lbs. will experience an average increase of 4.8%.
- Additionally, the USPS plans on combining Parcel Select Lightweight and Parcel Select.
However, it’s important to note that this average does not include any potential surcharge increases.
As e-commerce sellers, we heavily depend on these shipping carriers to deliver our products to customers. UPS, FedEx, and the USPS are the leading players in this market. But, we have taken it up a notch at Chicago Fulfillment Services, we offer alternative expedited shipping services that utilize these carriers but at a lower cost for our customers.
If you’re looking to reduce your shipping expenses, which can significantly increase your profitability, we are here to help. Contact us for a customized cost analysis and explore how we can assist you.
