These days, cheap shipping rates are scarcer than feathers in a cuckoo clock. Recent changes to both FedEx rates and UPS rates were bitter to swallow. Both companies announced increases to small package shipping rates that began with the New Year. Adding salt to the wound was a key change in how both FedEx and UPS now calculate dimensional weight for oversize packages, which may significantly impact your shipping costs. Here's the breakdown when you compare UPS vs FedEx rates.
FedEx Express package and freight rates rose by a net average of 3.9% for U.S. and U.S. export services. The rate increase for FedEx Express shipments comes via a 5.9% increase in the base rate. FedEx Ground and FedEx Home Delivery rates rose about 4.9%. The rate change was implemented via 5.9% increase in the base rate. Still, given these rates, you should not discount FedEx as a viable carrier.
Not to be outdone, Atlanta-based UPS raised the cost to ship ground and air by a net average 4.9% for U.S. domestic and U.S. export services. The UPS ground rate increase came via a 5.9% increase to the base rates. The increase for air express and international UPS rates is based on a 6.9% increase to the base rate. Likewise, these rate increases should not be used to discount UPS as a viable small parcel carrier.
Keep in mind that increases to FedEx and UPS rates are averages. Costs for certain shipment types will be even higher, while rates for other shipment types will be less. The factors affecting your actual carrier rate increase include such things as package size and weight; the services (i.e. Ground, 2-Day, Overnight, etc.) you most often use and the zones to which your packages are sent. The bottom line: When you compare UPS vs FedEx rates, they are still pretty close.