Savvy shippers will utilize least cost routing intelligence that compares fully laden costs based upon desired arrival times to drive down costs and improve the customer experience. Meanwhile, the national private carriers (UPS & FedEx) have both announced Holiday surcharges and dimensional related charges that will make the USPS even more competitive in 2018. While we knew this price increase was coming, those who follow this closely will be relieved to see the increases overall are modest in comparison to the last couple years. Priority Mail International (PMI) Priority Mail Express International (PMEI) and Global Express Guaranteed (GXG) increases are also pegged at 3.9%.First Class Package International Service (FCPIS) increase is 3.8%.Average cumulative increase since 2014 is 31% (Table 10).The average increase for PS DDU entry for packages weighing 1–10 Lbs.Ounce-based Parcel Select Lightweight (PSL) will increase an average of 5.3% for DDU induction.Shippers are more likely to recognize popular brand names like UPS SurePost, UPS Mail Innovations, FedEx SmartPost, Newgistics, OSM Worldwide and DHL SmartMail.Ĭollectively known as “Consolidators”, these companies perform and enjoy “workshare Incentives” from the Postal Service for: collection, sortation, transportation and deep induction within the USPS network for final mile delivery. Most of these were inducted via Parcel Select, although many may not recognize the name. (Table 4)Īccording to a Stifel study, the Post Office delivered 62% of all residential packages in 2016. Taken into a longer context, rates have only increased 4% since 2014. Notable historical changes: Much larger increase in the inner zones and heavier weights.Cubic pricing on the whole increases 5.2%, but the more expensive larger tiers and outer zones are only increasing 2% (Table 7).Regional Flat Rate will decrease an average of 11% (Table 6).
Flat Rate Products will increase an average of 7% (Table 5).The 3.9% increase is not linear, notice the wide variations in the price change deltas.If you compare all the cumulative increases since 2014, the 14 – 15.999-ounce cells have increased 15%, while the lightest packages (1-3 ounces) increased 38% (Table 2).Similar to last year, the higher the higher ounce lanes will see the biggest increase, with another big spike for 7 & 8 ounces (Table 1).Most shippers will likely experience a 5% or greater increase! Shipping Services have an announced 3.9% increase, but shippers should note that these averages don’t necessarily reflect the true impact. First Class Letters, Metered Letters and Post Cards will increase a penny. Mailing Services are set to increase 1.9% in line with Consumer Price Index limits. Senior Parcel Consultant, USPS SpecialistĬontact: USPS today announced new prices for 2018 to take effect on January 21.
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