For the coming year, the average rate increase will be 4.9% across the board. As usual, lower weight and shorter zoned packages will be increased more than 4.9% and particularly hard hit are residential shipments in these lower weights and zones.
Additionally, the FedEx and UPS Residential Surcharge will be increasing, the Dimensional Rate factor is being reduced (which means, smaller packages are going to be rated at a higher weight than before this update), and Extended Area Surcharges are being increased, along with the UPS and FedEx Fuel Surcharge tacked on top of these increases.
Three things you might want to consider are:
- Rate Shopping (Rating among several carriers to provide you with the best rate)
- Service Shopping (Looking at both alternative carriers and services to get your package there in the same time or less for a lower cost. (Say shipping a 10lb. package from Baltimore to Washington via UPS or FedEx Ground – With Guaranteed Next Day Delivery – Rather than shipping it Next Day Air.
- And if you don’t already have a USPS Account via Endicia.com, it just might be time to look at adding it. (The USPS does not charge Residential Delivery Fees, Out of Area Surcharges, Dimensional Rating fees, or Fuel Surcharges for Priority packages, and they provide free shipping boxes. This is not an endorsement of shipping via the USPS; we at CLS support all carriers, but it may be something to look at if it makes sense for your circumstances.
Mostly gone are the days that using a single carrier for all your packages is your best choice. In some cases, packages under 6-8 pounds can be sent via USPS Priority Mail to both business and commercial clients at a lower total rate than the traditional small package carriers. USPS is a 2-3 day (Not Guaranteed Service) where UPS and FedEx Ground may be best used for 1 & 2 day Ground service deliveries that are guaranteed.
With all the changes going on, do not hesitate to contact us to discuss what can be done to optimize your specific shipping operation.