If you think that the US Postal Service is the only shipping carrier to raises prices in 2020, think again. All major shipping carriers raise their rates every year, including both UPS and FedEx. However, UPS and FedEx are making some additional moves on top of raising prices across the board. In an attempt to capture higher margins on eCommerce packages, UPS and FedEx have raised fees for additional handling on parcels weighing 50 pounds or more.
Both UPS and FedEx Will Charge a $24 Fee for Packages Weighing 50 Pounds or More
UPS and FedEx’s “additional handling” fee is $24, and will kick in for packages that weigh 50 pounds or greater. Up until now, this particular fee used to kick in for packages weighing 70 pounds or more. While total package volume continues to rise year over year, industry experts can only assume that lowering the threshold for this fee is UPS and FedEx’s attempt to capitalize on a larger portion of eCommerce packages.
Spokespeople for UPS and FedEx have yet to issue a statement on the matter.
USPS is Still the Cheapest Carrier for Smaller, Heavy Packages
While tons of heavy packages will soon be subject to UPS and FedEx’s raised fees, USPS isn’t following suit. Rather than charge an additional fee for heavy packages, USPS will simply increase prices for all services by a marginal percentage in 2020. Even so, USPS is still the cheapest carrier for sending small, heavy packages, thanks to huge discounts from USPS shipping software, as well as special mail classes like USPS Priority Mail Cubic. These kinds of perks make USPS the premier carrier for eCommerce businesses such as subscription boxes and other direct-to-consumer companies.
While USPS is cheapest for smaller packages, FedEx and UPS have long been direct competitors for bulky parcels. Shippers have long chosen UPS and FedEx because of their more affordable rates for larger, heavier packages. However, since FedEx and UPS now have raised rates for packages weighing 50 pounds or more, USPS might also just become the go-to carrier for packages in the 50-70 pound range.