📦 Shipping Costs Climb
FedEx and UPS are hiking rates by 5.9% in 2025. This continues a trend of annual increases exceeding 5% since 2022. Carriers are adjusting pricing strategies amid shifting demand. Experts say shippers should expect fewer discounts this year. However, some mid-weight packages may still see competitive rates.
📉 E-Commerce Feels the Pinch
Lightweight package rates are rising due to U.S. Postal Service changes. Many last-mile delivery services relied on USPS for affordability. But with rates increasing, e-commerce businesses shipping under 3 lbs face higher costs. Experts say the era of ultra-low small package rates is ending.
📏 Bulky Shipments Hit Hard
FedEx and UPS are imposing higher surcharges on oversized packages. Handling inefficiencies drive up costs for large, heavy shipments. In some cases, fees now exceed base shipping rates. Rural area surcharges are also growing, affecting shippers with widespread delivery networks.
📊 Shippers Must Adapt
With over 150 negotiable elements in shipping contracts, strategy is key. Experts advise businesses to analyze their shipping profiles closely. Understanding where discounts can be secured is crucial. Companies shipping mid-weight packages may find opportunities for savings. Precision in contract negotiations can offset rising costs.
Will higher FedEx and UPS rates change your shipping strategy?
