All Things Shipping
Sep 23, 2016

2017 Rate Changes for FedEx, UPS & USPS

Shippo rate comparison fedex

Carriers like USPS, FedEx, and UPS are announcing price increases for 2017. We will be sharing and summarizing the impacts of these price changes here.

USPS 2017 Pricing – effective January 22, 2017

USPS announced that they will be increasing prices for 2017 starting on January 22nd after the holiday season. Changing their prices late in January allows businesses to continue to take advantage of 2016 USPS rates for any return shipments.

2017 increase in pricing will not affect any international services, including: First-Class Package International Service, Priority Mail Express International and Priority Mail International.

On average, there will be an increase of approximately 3.9% for Priority Mail, compared to an generate rate increase of 4.9% for both FedEx and UPS.

Details of the price increase can be found here.

Fedex 2017 Pricing – effective January 2, 2017

FedEx announced that they will be changing the way they calculate shipment pricing in 2017, as well as an increase in both their Ground shipments and Express services.

Pricing Formula Change
The way FedEx prices shipments is based on a “dimensional-weight” calculation. It is currently calculated as: L x W x H / 166

Starting January 2, 2017, FedEx Express and FedEx Ground U.S. domestic shipments will be calculated as: L x W x H / 139

This is a 19% increase to the pricing formula.

Dimensional Weight Illustration

Rate Increase
Starting January 2, 2016, FedEx will also be increasing rates for their shipments. On average, there will be a 4.9% increase for FedEx Ground and Home Delivery shipments and 3.9% increase for FedEx Express for U.S. domestic, export and import services.

For instance, if you sent a package with FedEx Ground, measuring 10 x 10 x 10 headed within 150 miles (Zone 2):

Fedex 2017 vs 2016

Head to the FedEx website to see a preview of the 2017 rates, and details on updates to shipping fees and handling surcharges.

UPS 2017 Pricing – effective December 26, 2016

Starting the day after Christmas, UPS will be increasing the Daily Rate price of U.S. Ground services, and U.S. Air and International Services by an average of 4.9%.

Here is a preview of the tentative 2017 prices. In addition to these shipping price changes, there will also be additional changes to shipping fees and handling surcharges coming into effect.

The UPS price changes are interesting because they take into effect starting the day after Christmas. So make sure to budget for an increase in cost for any returns.

Tips to help you save in 2017


  • Minimize the size of your shipments. Especially with carriers moving towards a dimensional-weight pricing calculation, package dimensions matters a lot.

For example if you’re shipping within 150 miles (Zone 2) with FedEx Ground in 2017, by taking box size down by 1 cubic inch you’ll be able to save 7.8% in cost.

Fedex box size example

  • Use multiple shipping carriers to rate shop and take advantage of different services they offer.

Shippo can help you do that by connecting you with multiple carriers from one place. You can see rates for every shipment, taking into account the box size, weight, destination and service level and select the service that best meets your needs.

Shippo rate comparison

At Shippo, we are here to help businesses of all sizes with shipping. With our API and dashboard, merchants can easily plug in their carrier accounts and instantly compare shipping rates, print shipping labels and track packages. Sign up today to get shipping rates for free, only pay if you purchase a shipping label.

Shippo is a multi-carrier API and web app that helps retailers, marketplaces and platforms connect to a global network of carriers. Businesses use Shippo to get real-time rates, print labels, automate international paperwork, track packages and facilitate returns. Shippo provides the tools to help businesses succeed through shipping.

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