Just as many businesses are adjusting to earlier parcel rate hikes, the parcel carriers are once again shifting the playing field. Both UPS and USPS have announced additional rate increases that will take effect over the coming weeks—adding more pressure to fulfillment budgets across the board.
UPS Raises International Fuel Surcharges — Again
Effective May 12, UPS is increasing its International Ground Export/Import Fuel Surcharge and International Air-Export and Air-Import Fuel Surcharge by 1%. This follows similar increases that took place last September, reinforcing a steady trend: international shipping costs are continuing to rise, particularly in response to ongoing fuel price volatility and global service adjustments.
For companies managing cross-border commerce, these fuel surcharge increases can significantly impact landed costs, especially when spread across high-volume or heavy-weight shipments.
USPS Announces July Rate Hikes Across Major Services
The United States Postal Service is also adjusting rates, with changes set to take effect July 13:
- Ground Advantage: +7.1%
- Priority Mail: +6.3%
- Parcel Select: +7.6%
These increases will affect a wide swath of eCommerce and B2B shippers who rely on USPS for cost-effective residential delivery. With these adjustments, USPS continues to narrow the gap between its pricing and that of private carriers—particularly for large packages or last-mile deliveries.
Leadership Update: New USPS CEO Pending
In a noteworthy leadership shift, David Steiner is set to become the next Postmaster General and USPS CEO, pending final background and ethics checks. His appointment comes at a time when USPS is under pressure to modernize operations, expand network efficiency and improve long-term financial sustainability.
How Shippers Should Respond
With multiple carriers raising rates and adjusting fees mid-year, it’s clear that parcel cost control cannot be a set-it-and-forget-it strategy. Shippers must remain proactive by:
- Auditing fuel surcharge accessorial impacts regularly to identify pass-through cost increases
- Reevaluating carrier mix to ensure service-level alignment and rate competitiveness
- Leveraging business intelligence tools to monitor trends and spot margin erosion
- Exploring zone skipping, regional carrier strategies or hybrid delivery models
Transportation Insight helps shippers uncover hidden costs, optimize fulfillment spend and stay ahead of carrier-driven changes. Connect with our team to learn how we’re helping clients mitigate mid-year increases like these.
