November 19, 2024
UPS, FedEx & Postal Service All Hiking Shipping Rates in 2025
Shippers across industries, including promo, will have to plan accordingly to account for the jumps.
Key Takeaways
• Rate Hikes Ahead: FedEx, UPS and USPS are all set to increase their shipping rates in 2025, with FedEx and UPS implementing a 5.9% average hike. USPS is also planning significant increases across various services.
• Strategies To Mitigate Costs: To manage rising expenses, businesses should consider using regional carriers for competitive rates and negotiate better terms with major carriers like UPS and FedEx
It’s going to get more expensive to ship packages in 2025.
FedEx, United Parcel Service (UPS) and the United States Postal Service (USPS) have all announced rate increases for 2025.
FedEx and UPS are both increasing their rates by an average of 5.9%. Still, many companies, including those in promo, that need to ship items could experience a steeper increase, a reality driven by related rises in common surcharges, according to parcel industry analysts.
UPS’ price pump-up takes effect Dec. 23, 2024, while FedEx’s goes into play Jan. 6, 2025. Promo companies that are seeing shipping rate spikes currently will note that’s a result of heightened peak season charges.
The Postal Service needs approval from the Postal Regulatory Commission to institute its pricing plans, but that’s typically just a formality. For 2024, USPS’ average price increases include an approximately 3.2% hike for Priority Mail and Priority Mail Express, as well as a 3.9% jump for USPS Ground Advantage and 9.2% cost escalation for Parcel Select.
In a statement, USPS said: “These proposed changes will support the Postal Service in creating a revitalized organization capable of achieving our public service mission – providing a nationwide, integrated network for the delivery of mail and packages at least six days a week – in a cost-effective and financially sustainable manner over the long term, just as the U.S. Congress has intended.”
To navigate the increasing costs, Paul Yaussy, director of parcel consulting for Shipware, offered tips for shippers in a piece penned for ParcelIndustry.com. Yaussy was addressing UPS increases in particular, but his advice appears to ring true generally.
Tips for companies include: Know your specific shipping profile to understand how rate hikes will impact you; look to regional carriers as an option, as they’re offering highly competitive rates; and negotiate with the likes of UPS and FedEx for better rates.