January 2022 - Annual Rate Increases (all major carriers)

Summary: Each year the major shipping carriers increase rates across their many services. Often these new rates apply starting in January (which is the case for FedEx and USPS), please note UPS 2022 rates will begin December 26, 2021.

In addition to the 5.9% average increase on service rates, there is also an increase on almost all surcharges for UPS and FedEx (i.e. peak surcharges, residential surcharges, signature required surcharge, delivery area surcharge, etc).

FedEx

Effective January 9, 2022

The average rate increase across all FedEx services: 5.9%

Highlights:

  • Average rates for ground services (including Ground Economy) will increase to 7.5% for small parcel 2-5 lbs, zones 2-8.

  • The minimum package charge will increase from $8.76 to $9.36 (1 lb, zone 2).

  • Large increases for Ground Economy (formerly SmartPost) services affecting residential delivery.

  • NEW: effective January 24, 2022 Additional Handling and Oversize packages will move to tiered pricing instead of flat-rate pricing.

  • NEW: Two peak surcharges take effect on January 17, 2022 until further notice.

    • $0.60 per package surcharge will apply to residential Ground and Express packages, with qualifying volume criteria.

    • $1.00 per package peak surcharge begins and will apply to all Ground Economy packages, with no volume criteria.

Read the full announcement.

UPS

Effective December 26, 2021

The average rate increase across all UPS services: 5.9%

Highlights

  • Zip codes included in Delivery Area Surcharge and Extended Delivery Area Surcharge have shifted. UPS now publishes a special guide to track these changes.

  • NEW: Remote Area Surcharge of $12.00 for ~2,700 zip codes (added in conjunction with the Delivery Area Surcharge and the Extended Delivery Area Surcharge).

  • Additional Handling and Oversize packages will increase and continue as tiered pricing (as updated in April of 2021).

  • TBD: SurePost rates to be announced, likely in 2022 after the USPS finalizes 2022 rate increases.

Read the full announcement.

USPS

Effective January 9, 2022

The average rate increase across USPS services: between 3.1% - 7.5%

Highlights:

  • 1-5 lbs packages will increase an average of 5.5%.

  • 11-25 lbs packages will decrease 16.1% on average.

  • 26-70 lbs packages will increase an average of 11.1%.

  • NEW: two new retail mail products focused on local communities.

    • Plus One. This is intended for businesses to reach local customers utilizing mail.

    • Connect Local Mail. This allows documents to be sent locally for same- or next-day delivery.

  • NEW: additional fees to packages exceeding certain dimension thresholds.

    • Dimension Noncompliance: $1.50 added to packages that exceed 22” in length or 1 cubic foot.

    • Nonstandard Fees: between $4.00 - $15.00 added to packages that exceed 22” in or 2 cubic feet.

Below are the planned retail price increases for Priority Mail Flat Rate retail products:

Product

Current

Planned Change

Small Flat-Rate Box

$8.45

$9.45

Medium Flat-Rate Box

$15.50

$16.10

Large Flat-Rate Box

$21.90

$21.50

APO/FPO Large Flat-Rate Box

$20.40

$20.00

Regular Flat-Rate Envelope

$7.95

$8.95

Legal Flat-Rate Envelope

$8.25

$9.25

Padded Flat-Rate Envelope

$8.55

$9.65

Read the full announcement.