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2016 Shipping Rate Increases For Carriers & Companies
Author: Shazary Chirino



          The Postal Regulatory Commission (PRC) just gave approval for the U.S. Postal Service to go ahead with their proposed price increases and service changes. This means that on January 17, 2016, ecommerce businesses using commercial pricing will see an increase in USPS shipping rates and changes to certain service offerings. These changes are also going to affect hybrid shipping methodologies that use the USPS network for transportation, including FedEx SmartPost, UPS SurePost, Mail Innovations and certain DHL services. Also in passing along the USPS increases, UPS and FedEx have also announced their yearly GRIs (General Rate Increases) affecting both residential and commercial shipping. 
            It’s been three years since the last increase to shippers utilizing commercial pricing.  The average rate increase for Priority Mail is 9.8 percent, while the average overall shipping services rate increase (comparable to FedEx and UPS GRI) is 9.5 percent. The USPS did not make any rate adjustments to First-Class Mail, Standard Mail or its other mailing services, including the Forever Stamp.
            The 2016 rate increase for UPS and FedEx is even with the 2015 increase. USPS is quick to say that its rate increase, annualized over three years since the last pricing action, would associate to 3.2 percent and fall below the FedEx and UPS general rate increases.  However, it is the increasing effect of both the USPS rate increase and other carriers GRIs that will cause a broad range of direct-to-consumer e-commerce shipping and makes this year’s changes more difficult than the years in the past. 
 

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