Update: The USPS has postponed its rate increase that was scheduled for 4/26/2015, and FedEx has followed suit.
FedEx has just announced the second SmartPost rate increase of 2015. Effective April 27, SmartPost rates will increase by 8.3%. The increase was brought about by a recent postage increase announcement by USPS. Shippers who have negotiated a general rate increase (GRI) cap will still be affected, but to a lesser extent. Analysts expect that UPS will soon announce a similar increase to their SurePost services.
USPS postage rate increases were approved on January 26 and go into effect on April 26, 2015. First Class Package service rates will be increasing 5.1%, while Parcel Select rates will increase by an average of 8%.
FedEx SmartPost and UPS SurePost, unlike standard FedEx or UPS ground services, do not guarantee committed delivery times. These hybrid, final mile services typically rely on the USPS for delivery.
This price hike comes on the heels of a slew of other recent increases including the recently revised fuel surcharge tables, this year’s general price increase (GPI), and the dimensional (DIM) weight changes. Small parcel shippers have undoubtedly been hit hard this year, and never has there been a greater need for increased transportation intelligence.
Have a question? Drop us a line to discuss how we may be able to help mitigate this (and other) price increases.