Shipping in 2022 just got a tad more expensive starting as early as January 9, 2022. The United States Postal Service (USPS), United Parcel Service (UPS), and FedEX have all announced new rates for 2022. We’ve summarized the highlights below and have linked to the various websites and announcements if you want to do a deep dive into package sizes and time sensitive shipping updates.
United States Postal Service (USPS)
Still awaiting final price approval, but scheduled to take effect on January 9, 2022, the USPS expects to raise prices about 3.1% for Priority Mail and Priority Mail Express. See all the details at the USPS website.
Shipping for domestic Priority Mail Flat Rate packages will be also higher. See the summary table with the expected updates below.
| Product | Current | Changed |
| Small Flat-Rate Box | $8.45 | $9.45 |
| Medium Flat-Rate Box | $15.50 | $16.10 |
| Large Flat-Rate Box | $21.90 | $16.10 |
| APO/FPO Large Flat-Rate Box | $20.40 | $20.00 |
| Regular Flat-Rate Envelope | $7.95 | $8.95 |
| Legal Flat-Rate Envelope | $8.25 | $9.25 |
| Padded Flat-Rate Envelope | $8.55 | $9.65 |
Although USPS published increase is an average of 3.1%, Shipware.com predicts that most shippers instead will see a rate increase of 5 to 8%.
“The announced average price change for Priority Mail is 3.1%, however, most shippers will realize a 4.9% increase (1-5 lbs), while ecommerce prices will increase an average of 6-8%.” Read the full article to check your impact.
United Parcel Service (UPS)
Bucking the trend UPS’ price rate increase takes effect just after the Christmas holiday on December 26, 2021. The rate increase will be one of the largest in UPS’ history. Expect a 5.9% average rate increase plus a hefty Fuel Surcharge.
Large package shippers will get hit again with a higher than average rate increase. Shipware.com say, “The large package surcharge will increase within a range of 8% to 16.7% and the additional handling charge for weight and dimensions will increase from 5.2% to 13.9% depending on zone.” Read the full article to check your impact.
For regular shippers the Fuel Surcharge is added to your weekly shipping statement. UPS describes the surcharge:
“UPS uses an index-based surcharge that is adjusted weekly. Changes to the surcharge will be effective on Monday of each week. The surcharge will be based on the National U.S. Average On Highway Diesel Fuel Price as reported by the U.S. Energy Information Administration (EIA) for the week that is two weeks prior to the adjustment, rounded to the nearest cent.”
The posted sample grid show a surcharge of 9.2% to 12.75% on the UPS website page for reference Your shipping may also be affected by Peak Surcharges for shipping into the US from overseas. View the table. Visit the Shipware.com website for a good summary of all the rate increases for UPS to get a high level overview.
FedEX
FedEx will increase shipping prices on January 3, 2022. A whopping 5.9% average increase is expected. with Fuel Surcharge increases to be factored in as well. This is the largest increase for FedEx in eight years. Most shippers will feel more than a 5.9% impact.
Additional information from the FedEx website show additional increases that will impact shipping costs in January.
• Effective Jan. 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge that applies when a pickup is performed and no shipment is tendered to the carrier.
• Effective Jan. 17, 2022, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.
• Effective Jan. 17, 2022, a Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.
• Effective Jan. 24, 2022, the Additional Handling Surcharge and Oversize Charge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone”
You can read the full rate change notice on FedEx for more information. Or preview the rates now in a PDF from the FedEx website.
Shipware.com says this about the FedEx rate increase: “This is the first time since 2013 that the average parcel increase is greater than 4.9%.” For a high level summary of the new FedEX rates read the full article.
Rates May Change, But Medallion’s Customer-Focused Service Does Not
Medallion Fulfillment & Logistics knows that increases in shipping costs squeeze your bottom-line. You want to get value from the services you receive and keep your customers happy and loyal. Medallion understands this as your 3PL service provider.
Rest assured we do all we can do to keep our costs low and our prices affordable to boost your bottom-line.