2024 Shipping Rate Changes Explained: USPS, UPS, FedEx, DHL, and more
Editor's Note: This blog was last updated on January 30, 2024.
With the new year in full effect, businesses everywhere are finalizing their plans on how to make the most of their 2024. One aspect that can’t be lost in this planning is considering the 2024 shipping rate changes to be assessed by all major parcel carriers.
Knowing what to expect in advance will help you determine upcoming shipping costs which will in turn help you determine your budget for other business matters. Shippers everywhere can expect some slight increases in shipping costs across the board. The difference this year is that the percentage of this increase is lower than in previous years.
We’ll help walk you through what to expect moving forward and we’ll explain how you can still save money on shipping, despite these 2024 shipping rates changing.
USPS 2024 Shipping Rate Changes
As of January 21, 2024, the USPS has slightly increased the price of three of its competitive shipping service products.
To put it simply, USPS Ground Advantage prices will increase by 5.4%, Priority Mail services will increase by 5.7%, and Priority Mail Express Services will increase by 5.9%. These are all services regularly used by e-commerce businesses and logistics companies everywhere.
Here's a sample of the Postal Service's new prices for USPS Ground Advantage:
In addition to these changes, price adjustments will also be seen with First Class Letter and Flats as well as Domestic and International Special Services such as Signature Confirmation Services.
However, for Shippo users, rates for these competitive shipping service products will remain significantly lower. The table below highlights the discounts Shippo users can expect to receive off of USPS retail rates:
These discounts can be seen most prevalently for USPS Ground Advantage when shipping a package weighing 1-10lbs and is being sent to Zones 6-8. Lower rates for Priority Mail can be seen across most weights and zones.
Other perks that Shippo users have become accustomed to when shipping with USPS will also remain the same including free package pickup, free shipping boxes, no residential or fuel surcharges, and free Saturday delivery.
*Expected delivery based on service standards for >90% of origin-to-destination combinations within the zone. Packages containing hazardous materials or live animals may receive slower service.
2024 Shipping Rates for UPS
UPS Air and Ground services on Shippo are increasing 5.9% effective on February 4, 2024. UPS is a premium carrier and offers a deeply discounted premium product to merchants on Shippo. Take advantage of savings of up to 77% off on UPS® Ground shipments, up to 73% for UPS 2nd Day Air® service, 72% for UPS Next Day Air® service and up to 83% off international services. These rates include Fuel Surcharge and Residential Surcharge for all services and Delivery Area Surcharge for Domestic Services.*
Shippo is continuing to provide competitive UPS shipping rates for e-commerce merchants and will continue to provide some of the fastest guaranteed delivery times as well, with 90% of UPS® Ground shipments arriving in 3 days or less. Shipping with UPS also provides automated shipping updates, tracking information, and delivery alerts.
For merchants with their own account with UPS, contact your UPS Account Manager or visit UPS.com for more details.
*Discounts off UPS daily rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.
2024 FedEx Shipping Rates
FedEx was the first major carrier to announce its upcoming 2024 shipping rates. They will assess a 5.9% General Rate Increase (GRI) across its FedEx Express services as well as FedEx Ground® and FedEx Home Delivery®. These changes went into effect on January 1, 2024.
Changes also went into effect for common surcharges such as Additional Handling Surcharge and Oversize Charge. The dates those changes will be put into effect and the exact services affected by these changes can be found on FedEx.com.
But again, Shippo users have not been affected in the same way. Deep discounts will be available all year for FedEx services available natively on Shippo such as FedEx Ground Economy®, FedEx International Connect Plus®, and FedEx Ground Returns®.
Perks for shipping with FedEx Ground Economy® such as waived residential and fuel surcharges, 24-hour package tracking, and the ability to use your own branded shipping boxes will continue to be in effect. And for FedEx International Connect Plus® perks like waived residential surcharge, included customs clearance, and day-definite service will also continue throughout 2024.
By simply creating a Shippo account, you can save big shipping with FedEx with no volume requirement to access deep discounts and great perks on some of the carrier's best options.
DHL Express and Regional Shipping Rates 2024
DHL Express will be joining FedEx by assessing a 5.9% general average shipment price increase for U.S. shippers that went into effect on January 1, 2024. This is lower than the previous annual increase which was set at 7.9% for 2023. There are also a few services and surcharges that saw price adjustments go into effect as well.
A full breakdown of the upcoming rate changes can be found in their latest 2024 Service & Rate Guide.
However, for Shippo users, they’ll be able to access discounts of up to 75%, schedule package pickups, and get pre-filled customs forms for their international shipments.
When it comes to regional carrier rate changes, these will vary widely depending on the carrier you plan on using. For example, GLS-US, a widely popular carrier for businesses shipping on the western side of the country may look different than a company like LSO which specializes in shipments within the state of Texas. You’ll need to speak to your account manager with those carriers to find out how exactly their 2024 rate changes will affect the rates your business will pay.
Shipping Rate Changes 2024 For International Carriers
For larger merchants or for those who are shipping in and out of countries outside the U.S., there will be price changes to look out for this year.
As of January 1, 2024, the average price increase for Collisimo will go up 4.18% when compared to last year. Those who sell domestically and internationally from France will need to take this into account when creating their 2024 shipping strategies.
In addition, DPD UK Domestic 2024 rates will also see a 4% increase. With the UK becoming a dominant e-commerce market, these shipping rate changes may affect how you price shipping to your customers.
However, not all international carriers will be imposing rate increases. For example, Correos (a Spain-based carrier) does not plan to change rates for Shippo users from last year. Similarly, Deutsche Post (the national carrier of Germany) does not plan to make changes to their 2023 rates either. The same could be said for the German shipping alternative carrier, DPD DE.
For more information on the exact rate changes for each international carrier, you’ll need to talk to your account manager with that carrier or speak to the Shippo team.
Where to Find Cheaper Shipping Rates
While carrier rate changes change every year and your business will be looking to make some impactful changes in 2024, some things just don’t change. The best place to find cheaper shipping rates for all the major carriers in the U.S. will continue to be with Shippo. By signing up for your free Shippo account, you’ll immediately gain access to deep discounts with USPS, UPS, and FedEx. You can see discounts of up to 89% with USPS cubic rates, 82% off with UPS international rates, and massive discounts for services like FedEx Ground Economy®.
Shippo will also allow you to connect your own carrier account so that you can access your own negotiated rates within our platform. This keeps your shipping and fulfillment teams organized and minimizes shipping costs at the same time.
To learn more about how we can help your business save on shipping costs, contact one of our shipping experts today!