Articles & News

Shipping Rates Set to Change for 2020

No one needs to be told this time of the year is going to be busy but once the hustle and bustle is over after the holidays have you asked yourself what is in store for next year? What changes will be happening as far as pricing in shipping goes and what other options do you have? We know there are some planned 2020 USPS rate increases and we are here to help. Recently written on Shipware an article titled “USPS 2020 Price Increase & Impact on Shippers,” Gordon Glazer gives us all the numbers and info for the new year. Below are USPS mail classes and their average price adjustment.

Some key points are:

  • Priority Mail is set to raise its minimum price for a package from $6.95 to $7.05, approximately 1.4%.
  • When applied to 1-10-pound packages, the GRI (General Rate Increase) effect is an average of 3%.
  • First-Class rate adjustment on a 1-ounce package increased from $2.66 to $2.74, or about 3%.
  • International PM & PM to Canada is %6< & FCM International is almost 10%
  • Cubic is almost to 5%

Also stated, there are new competitive pressures such as FedEx and UPS announced plans to go to 7 days a week delivery. FedEx also is planning to keep 100% of their SmartPost shipments in-network instead of handing off to the Post Office for final delivery. Glazer says, “The new year provides time and opportunity to fine tune your shipping program. It will be a good time to look for savings by examining routing logic, review carrier contracts and network with industry peers.” Contact a FirstMile representative to discuss what our shipping fulfillment services can do for your business and get settled before the proposed effective date of January 26th, 2020.