USPS 2024 rate hikes mirroring those by FedEx and UPS
At a time when other carriers were increasing shipping fees and imposing surcharges, USPS pledged to "deliver another successful holiday season of outstanding service" without peak season surcharges.
The news seemed too good to be true. And although USPS will have a surcharge-free holiday season, it has just released its 2024 rate hikes on services similar to UPS and FedEx's most popular offerings. In today's blog post, we'll share the United States Postal Service's published rate increases, compare similar services by FedEx and UPS, and what this means for you.
What can you expect with USPS's 2024 rate increases?
Last week, the United States Postal Service filed new rate changes with the Postal Regulatory Commission. These rate hikes come after two rate adjustments in 2023, part of Postmaster DeJoy's profitability plan, which runs through 2030, and after USPS announced a $6.5 billion loss for the 12 months ending September 30.The following changes will go into effect on January 21, 2024:
- 4% increase for USPS Ground Advantage
- 7% increase for Priority Mail service
- 9% increase for Priority Mail Express service
- 9% increase for Parcel Select service
- No increase for Connect Local
How does USPS Ground Advantage compare to similar services by FedEx and UPS?
In July 2023, USPS replaced its First-Class, Retail Ground, and Parcel Select Ground shipping services with its new Ground Advantage shipping service. With free pickups along a delivery driver's usual route, Ground Advantage offers insurance coverage up to $100 in declared value and tracking. This service delivers all packages within the continental US, up to 70 pounds, in two to five days, depending on location.USPS Ground Advantage competes with FedEx Ground and UPS Ground. However, UPS and FedEx offer ground shipping for packages up to 150 pounds in one to five days. UPS and FedEx announced their 2024 general rates with an average net increase of 5.9% for ground services— a slightly higher increase than USPS.
How can you be sure you're getting the best rates on shipping?
As carriers battle for business, now is a great time to renegotiate your shipping contracts. ShipRx can assess your current contracts, determine areas where you're paying too much, and help you reduce your rates. In fact, most of our clients lower their shipping costs by 20-30% or more.Get in touch today for a free contract evaluation and start 2024 with lower shipping rates— even as the carriers raise their rates.