Standard ground shipping will increase by an average of 4.9%
United Parcel Service Inc. and FedEx Corp. will increase their rates for standard ground shipping – the most common shipping method used by online retailers to deliver goods to consumers – by an average of 4.9% next year after factoring in a one percentage point reduction in fuel surcharges, the companies say.
At FedEx, the average 4.9% rate hike will take effect Jan. 7 and cover shipments of parcels weighing up to 150 pounds through FedEx Ground and FedEx Home Delivery. At UPS, the average 4.9% rate hike goes into effect Dec. 31 for UPS Ground Services, also for parcels of up to 150 pounds.
Ken Wood, president of shipping advisory firm LJM Consulting, notes that the lighter the package, the higher the rate increase. And because most online retailers ship packages of 30 pounds or less, their average rate increase will run higher than 4.9%, he says. “Overall, most e-commerce retailers will have a rate increase of about 7% or 8%,” he says.