Every year the major shipping carriers make adjustments to their rates. Here is an overview of the 2024 general rate increases across all major shipping carriers.
We’ve included the effective dates when these general rates start, average increases across all services, and a few highlights that may be new information for shippers. Please note these are general rates, your individual shipping mix and negotiated rates may vary.
Below is a high-level breakdown of the major changes with each carrier. This post will continue to be updated as more information is released from each shipping company.
FedEx
Effective January 1, 2024
The average rate increase across all FedEx services: 5.9%
Highlights
- This rate increase average does not take into consideration surcharge increases.
- Ground residential surcharges increased 6%, air residential surcharge increased 6%. Fuel is always added onto this surcharge and changes weekly.
- Delivery Area surcharges increase on average 6%. Fuel is always added onto this surcharge and changes weekly.
- Additional handling surcharges increase on average 13%. Fuel is always added onto this surcharge and changes weekly.
Read the full announcement.
UPS
Effective December 26, 2023
The average rate increase across all UPS services: 5.9%
Highlights
- This rate increase average does not take into consideration surcharge increases.
- Ground residential surcharges increased 7%, air residential surcharge increased 6%. Fuel is always added onto this surcharge and changes weekly.
- Delivery Area surcharges average increase of 7%. Fuel is always added onto this surcharge and changes weekly.
- Additional handling surcharges increases on average 17%, some as high as 23%. Fuel is always added onto this surcharge and changes weekly.
- Remote Residential/ Remote Commercial Surcharges have an average increase of 7%.
Read the full announcement.
USPS
Effective January 21, 2024
The average increase across all impacted products would be approximately 2% if approved.
- Ground Advantage is increasing 3.7% on average.
- Media Mail is increasing 13.3% for 1-5 lbs., 9.9% for 6-10 lbs., and 8% for > 11 lbs.
- Priority Mail will see a 4.8% average increase for 1 -5 lbs, zone 2-8 and 9.0% average increase 1 – 70 lbs.
- Parcel Select is increasing 4.8% on average for 2-9 lbs.
- USPS combining Parcel Select Lightweight & Parcel Select.
The Postal Service has yet to release updates for specific services. This article will be updated with new information as it gets published by USPS.
Read the full announcement here.
Pitney Bowes
Effective December 31, 2023
The average rate increase across all FedEx services: 4.9%
Highlights
- Non Qualified Dimension thresholds have increased.
DHL eCommerce
Effective January 21, 2024
The average rate increase across all DHL services: 5.4%
How Will the 2024 Shipping Rates Affect Ecommerce Businesses?
The rate increases above are generalized and may not reflect any volume discounts or special services you use.
Generally, if your brand has any of the following characteristics, it is likely that you will see larger increases than the average percentage stated above.
- Large packages (additional handling/oversized)
- Has a high percentage of long zone shipments
- Remote area packages
- Dangerous goods packages
Tags: Shipping carrier updates
