Shipping prices increase for holidays, but some will stick around in 2022


ELMIRA, N.Y. (WETM) — Several major shipping companies will increase their prices in January 2022 because of an increase in labor and fuel costs.

“Our gasoline is up 58 percent since the beginning of the year, and wages are 4 percent. The combination of those two factors has made delivery charges increase. In addition, there’s overtime because everybody wants that package quickly,” Dr. Martin Cantor, an economist from Long Island, told 18 News.


FedEx Express shipping rates will increase by an average of 5.9 percent for U.S. domestic, U.S. export, and U.S. import services. Also, FedEx Ground and FedEx Home Delivery shipping rates are increasing by an average of 5.9 percent. FedEx Ground Economy shipping rates will also increase. As for freight shipping, FedEx rates will increase by an average of 5.9 percent.

The company says these changes reflect incremental costs associated with the challenging operating environment while enabling FedEx to continue investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently.

The following FedEx Express, FedEx Ground, FedEx Ground Economy, and FedEx Freight surcharge changes will also take effect in the coming months:

  • Effective November 1, 2021, a fuel surcharge increase will be applied to FedEx Express (U.S. domestic package and freight services), FedEx Ground, and FedEx Freight shipments.
  • Effective January 17, 2022, FedEx Freight will introduce a No Shipment Tendered surcharge that applies when a pickup is performed and no shipment is tendered to the carrier.\
  • Effective January 17, 2022, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code, or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.
  • Effective January 17, 2022, a Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.
  • Effective January 24, 2022, Additional Handling Surcharge and Oversize Surcharge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone.

United States Postal Service

The postal service increased its price this holiday season in order to stay in line with competitive practices. The price hike began on Oct. 3 and will end on Dec. 26. No structural changes are planned as part of the limited-time delivery increase.

  • $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
  • $0.25 increase for Zones 1-4, 0-10 lbs.
  • $0.75 increase for Zones 5-9, 0-10 lbs.
  • $1.50 increase for Zones 1-4, 11-20 lbs.
  • $3.00 increase for Zones 5-9, 11-20lbs.
  • $2.50 increase for Zones 1-4, 21-70 lbs.
  • $5.00 increase for Zones 5-9, 21-70 lbs.

For a full list of the holiday price adjustments, visit the USPS website.

In 2022, the USPS proposed additional price changes that would take effect on Jan. 9, which would increase Priority Mail and Priority Mail Express service by 3.1 percent. The postal service blames market conditions for the increase in prices.

Some of the notable price increases are Small Flat-Rate Box will cost $9.45, which is $1.00 more than in 2021. The medium flat-rate box will cost $16.10, up from $15.50 previously.

In contrast, the large flat-rate box will decrease in price to $21.50.

For a full list of USPS 2022 pricing, visit their website.

Cargo Shipping

The global surge in container shipping rates could send consumer prices 1.5% higher over the next year, according to a report from the United Nations Conference on Trade and Development (UNCTAD).

The rate for a single shipping container has skyrocketed over the last 18 months as the coronavirus pandemic disrupted supply chains and trade channels. Routes have seen costs rise by seven times, if not more.

By country, the U.S. would see consumer prices rise by 1.2%, while China would see a 1.4% increase, the report said. The analysis found that smaller countries more dependent on imports would see consumer prices rise by a much higher 7.5%.

By product, electronics, furniture, and apparel would see the greatest price increases — of at least 10% globally — due to supply chain distribution, UNCTAD said, noting containers account for 17% of total seaborne trade volume.

CNBC contributed to this report.

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