Ground shipping prices to increase in 2013 as UPS, FedEx raise rates
By Jay Keller
UPS and FedEx, the top-two rated domestic shipping outlets, plan to increase their shipping rates for 2013 in key business areas that will affect online shoppers in the New Year. Both companies recently announced plans for a nearly five-percent hike on ground delivery while the USPS adjusted its rates by offering new flat rates for domestic shipping.
More important to eCommerce shippers who take advantage of the cheaper Parcel Select postal rates through the U.S. Postal Service is the price increase of nine percent. This generally affects local residential deliveries forwarded to the USPS by major shippers under the program.
The FedEx Ground and FedEx Home Delivery prices are set to go up on January 7, 2013, which represents a full average rate increase of 5.9 percent. The price will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by one percentage point for a 4.9 percent net increase. FedEx published online frequently asked questions in an effort to help explain further rate changes and the new calculation of shipping costs.
UPS Ground Services will increase prices on December 31, 2012, using a similar model as their competitor FedEx through a combination of higher rates which are offset by fuel prices listed in the UPS Ground fuel surcharge table. The total net increase for UPS ground services is also 4.9 percent. The complete 2013 UPS Surcharge Changes are available online and, according to the company, will allow for improved service to the customer.
Additionally, when prices change on January 27, 2013, the U.S. Postal Service will introduce a First-Class Mail Global Forever Stamp. The new stamp will allow customers to mail letters anywhere in the world for one set price of $1.10 and is among new mailing and shipping services filed with the Postal Regulatory Commission on Oct. 11 who will review the prices before they become effective in 2013.
The new domestic retail pricing for Priority Mail Flat Rate products range between $5.60 and $5.95 for a small box or envelop including those considered regular, legal or of the padded variety. Prices for shipping boxes range between $12.35 and $16.85 depending on the size and destination.