“New year, new me” typically means a new year’s resolution to exercise or say “yes” to life more. Carriers, though, use the new year to roll out their General Rate Increases (GRI). These rate changes are not the result of inflation, price of oil, or the desire to just simply raise prices.
General Rate Increases are a result of supply and demand. The ever increasing trend of shopping online is a major culprit for how much we pay for shipping. This is why rate increase announcements tend to start with “In order to maintain the level of service our customers expect…” disclaimers. These rate increases help buy more sporting facilities, fleets of vehicles, employees, polyester uniforms, etc.
The following rate increases are highlighted since they are most likely to impact ecommerce businesses and their customers. If you have negotiated rates with any carrier, reach out to your carriers’ account manager to be sure you’re getting the best information about what rates to expect.
United States
USPS
The following rate increases go into effect January 27th, 2019:
USPS reports “The proposed prices, approved by the Governors of the Postal Service, would raise Mailing Services product prices approximately 2.5 percent.”
First Class Mail
- First Class Mail parcels have long held the same flat rate across all 9 zones. In 2019, though, First Class Mail will now have a zone-based pricing structure. This pricing structure aligns more similarly with other USPS services such as Priority Mail.
- Prices for First-Class Package International services will increase by an average of 3.9%
Priority Mail
- The USPS will do away with Balloon-rate pricing. In order to fall under this pricing, the package must meet all three of the following requirements:
- under 20 lbs.
- more than 84” in combined length/girth
- shipped to zones 1-4 (and local)
UPS US
The following UPS surcharge and rate increases will go into effect on December 26th, 2018:
- The rates for UPS® Ground, UPS Air and International services will increase an average of 4.9%.
- Fuel surcharges will apply to Additional Handling, Over Maximum Limits, Signature Required and Adult Signature Required accessorials.
- A processing fee of $2.00 per package will be charged when Package Level Detail (PLD) is not provided to UPS prior to delivery.
- Various value-added services and other charges will increase in 2019.
FEDEX US
The following FedEx rates and surcharges go into effect Jan. 7th, 2019.
- Rates will increase for FedEx Ground, FedEx Home Delivery®, FedEx Express, FedEx One Rate®, FedEx SmartPost®.
- Shipping surcharges and fees will change, thus impacting final shipping rates.
- FedEx Ground and FedEx Home Delivery standard list rates will increase by approx. 4.9%.
- Minimum rates for FedEx Express® services will increase.
DHL Express (US)
Effective Jan. 1st, 2019, shipping rates for DHL Express international services will increase by an average of 5.4%.
Canada
The following rates will go into effect January 14th, 2019.
Canada Post
Domestic
Prices for Domestic Parcel Services will increase by an average of 4% for most customers.
The following services will be impacted:
- Priority™
- Xpresspost™
- Xpresspost™ Certified
- Expedited Parcel™
- Regular Parcel™
International
Prices for USA/International Parcel Services will see an average increase of 2%.
The following services will be impacted:
- Priority™ Worldwide
- Xpresspost™—USA and International
- Expedited Parcel—USA
PUROLATOR
Starting Jan. 1, 2019, Purolator’s general list rate will increase by an average of 4.9%. There will also be some changes to select fees and surcharges.
FEDEX CA
FedEx will implement the following changes to fees and other surcharges, effective January 7, 2019 unless otherwise noted:
- Residential surcharges will increase from $3.75 to $3.85.
- Address correction fees will increase from $13 to $14.
- Additional Handling Surcharge will increase from $11 per package to $12 per package.
UPS CA
The following UPS CA rates and surcharges for the following Effective Dec. 30th, 2018.
- UPS Standard® within Canada will increase a weighted average of 4.5%
- Standard to the U.S. will increase a weighted average† of 3.5%
- Small package services within Canada other than UPS Standard will increase a weighted average of 3.0%
- Small package services to the U.S. and worldwide destinations other than UPS Standard will increase a weighted average of 3%
DHL Express CA
DHL Express will update its prices, effective January 2019. In Canada, the average price increase will be 4.9%.
UK
DHL UK
DHL Express will update its prices, effective January 2019. In the United Kingdom, the average price increase will be 4.9% for all products.
The price change applies to Published Rates, all discounted rates and agreements, where contracts allow.
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