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THE COMING DAYS COULD BRING A WHOLE NEW MEANING TO THE TERM "SNAIL MAIL."

Even in the age of email and using the internet for practically everything, there's a good chance you still rely on traditional mail to get a few things done. But whether it's your annual holiday cards going out on time or a care package you're hoping makes it to your loved one swiftly, it can still be a helpless feeling whenever you drop something off in a mailbox or at the post office. Now, the United States Postal Service (USPS) has announced it's making a major permanent change that's going into effect in a matter of days. Read on to see how your daily deliveries are about to get different.
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Continued pressure on carrier capacities has led carriers such as FedEx, UPS and now DHL to implement additional shipping surcharges in advance of the traditional peak season.  As this timing is quickly approaching this peak period, planning for this is critical. DHL has now released its peak surcharge schedule as well. 
 
The recently announced USPS increases will primarily be applied to First Class type mail. Parcel Select rates will increase slightly for those shippers dropping parcels upstream in either the DSCF/DBMC. However, shippers who use UPS/FDX for SurePost/SmartPost  get their packages dropped  into the DDU (local Post Office). It looks like USPS will not increase those particular rates. Noteworthy because both UPS/FDX would pass it directly through to both SurePost/Smartpost customers.
 

Effective June 13, 2021, UPS will apply additional Peak increases to those international shipments originating in Japan destined to Canada. Previous increases, that were set to expire on June 12th, will continue to be applied on a per/pound basis. Depending on the service used, expect to see increases ranging from 67.6%-200% (on a per/lb. basis). All other previously announced surcharges will “continue until further notice”.
Although UPS did not take this opportunity to make changes to key Domestic Peak surcharges (as did FedEx several weeks ago), it is the collective wisdom amongst analysts that suggest additional hikes are on their way.
Specific details can be found at:
https://www.ups.com/assets/resources/media/en_US/2021_UPS_Peak_Surcharges.pdf
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Effective September 13th, Canada Post will increase rates to both Domestic, USA and International parcels. Increase ranging from 2.8% (US /International) to 3.5% (Domestic parcels only). Similar to both UPS and FedEx, other increases center around big, bulky and oversize packages flooding into their network.  Surcharges for Oversize/Unpackaged items will increase from $18 to $25 (38.8%) and Out-of-Spec packages will increase from $300 to $400 (33.3%).
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As a side note, any UPS International Mail Innovations or Purolator customers should expect to see increases to their bills as well. Since Canada Post makes many of the final mile deliveries for both UPS International MI and Purolator, rate hikes are typically treated as a “pass through” charge to the customer.

As always, the pricing professionals at AFMS pricing team will continue to monitor for any changes as they arise.

Effective June 13, 2021 until further notice, the amount of the Peak Surcharges applied to certain international shipments originating from Asia, including Japan will increase. All other previously announced Peak Surcharges will remain unchanged. 
Review a detailed listing of the applicable Peak Surcharges.
Peak Surcharges are subject to change and Peak Periods may be extended or otherwise changed. The latest information on Peak Surcharges will be available at ups.com/peaksurcharge.

FedEx remains inundated with elevated parcel volume stemming from continued online shopping resulting in longer delivery times, service blunders and upset customers. According to ShipMatrix, from March through mid-April, about 87% of FedEx Ground shipments arrived on time, compared with 95% for the similar service at UPS. 
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​UPS has once again reinstated its money-back guarantee after suspending the program at the beginning of the pandemic due to unexpected market changes. As a greater number of Americans began working remotely and staying home to reduce the spread of COVID-19, e-commerce has seen a major surge. Compared to the 13 billion parcels shipped in the U.S. in 2018, there were up to 14.7 billion parcels shipped in 2020. Amazon packages alone made up 1.9 billion of those parcels.

It's no secret that your company needs to be strategic when it comes to parcel shipping. After all, the U.S. is the biggest market in terms of parcel spending. Choosing the right carriers is essential to making sure you're not overpaying for parcel shipping costs.

However, your bottom line isn't the only thing you need to worry about when it comes to carriers. You also need to be concerned with brand reputation. Customers who receive late packages or don't receive their packages at all won't be shopping with your business again. That angry customers will be sure to leave a trail of bad reviews so other customers know not to shop with your business, either.