Tactics to Navigate Parcel Carrier Rate Hikes

Parcel carriers are making big changes.

USPS, UPS, and FedEx are raising prices and reworking their networks to keep up with the growing demands of e-commerce. 

For instance:

• USPS raised rates for Ground Advantage by 3.9% and Parcel Select by 9.2%, making smaller shipments more expensive.

• UPS ended its SurePost partnership with USPS, taking full control of last-mile deliveries. This shift comes with rate increases of up to 9.9% for lighter packages.

• FedEx increased prices by an average of 5.9% and introduced new fees, such as a charge for processing U.S. imports.

For shippers, these changes mean higher costs, tighter capacity, and potential disruptions to operations. The impact on your bottom line could be significant.

So, what can you do to adjust to this new reality?

I turned to industry expert John McClymont for his thoughts. With over 20 years of experience in supply chain and operations, John has deep expertise crafting strategies to help companies cut costs and streamline operations.

In our conversation, John shared why carriers are making these changes, how to integrate regional carriers into your shipping strategy, actionable steps you can take to adapt, and more.

Let’s dive in 👇

Table of Contents

1. Implications of Carrier Changes

2. Choosing the Right Carrier Strategy

3. UPS’ SurePost changes

4. Tactical Advice to Optimize Shipping

This conversation has been edited for length and clarity. If you're short on time, skip to the key takeaways & actionable steps section.