As has become an annual rite of passage this time of year, FedEx and UPS are again implementing a price increase. Welcoming us to 2025.
FedEx/ UPS have incredible market dominance in North America and have the power to increase their cost to small and medium size shippers.
UPS and FedEx costs will increase at least 5.9% for 2025
But the 5.9% is an average and does not include surcharge updates
- Changes to DAS zip codes
- Changes to pricing zone per postal code
- Lower min billable weight for Additional Handling
- Calculation changes to Large Package and Additional Handling surcharges
With announced, Fedex and UPS show their market dominance. Don’t assume that your overall cost to ship will increase by only the general rate. Accessorial fees for beyond points, and other rules and services may drive your rates much higher.
Take the time to do the analysis, or seek the advice of a transportation advisory service to help you to negotiate the best rates.
Expand your Shipping Options
Find the best shipping modes, processes and carrier options. Strengthening your transportation team - even if you are a team of one! A trusted brand for over 40 years of cross border shipping. Contact our team for a consultation.
Can I negotiate a lower 2025 increase from FedEx and UPS?
FedEx and UPS annual cost increase is not negotiable for most companies. The best way to manage your costs is to look at alternative carriers and methods.
Why do FedEx and UPS have annual price increases?
FedEx and UPS are market dominant carriers with investor pressure to grow their profit margins.
Ways to Offset FedEx and UPS 2025 Rate Increase
As part the annual review, consider the following ways to reduce your shipping costs with alternatives.
Consider alternative carriers
FedEx and UPS are well known brands that demand a premium. However, there are "second level" carriers that can provide similar services at a discount. This can especially be true for international destinations.
Consider using resellers - such as Jet Worldwide
It can seem counter intuitive that a reseller of FedEx or UPS can be cheaper. And we view the larger resellers "comparison sites" as a bit misleading. The advertised savings of +50% to still be expensive. Having said all that, the best "resellers" are actually logistics consultants.
At Jet Worldwide, we often recommend alternative methods that we do not offer. And we have many alternative options you may have not previously considered.
Some guidelines to consider:
- Ground shipping is often best direct with FedEx and UPS
- Canada Post is often best for individuals shipping personal items and infrequent shippers
- Consolidation of packages and shipping in bulk can bring considerable savings
- Contact Jet to see if additional savings are possible
Consider lower cost shipping methods
Ground and ocean can be considerably less expensive. You may also want to consider using Canada Post for non urgent low weight items.
Reduce over packaging and size of your shipments
Dimensional weight can add significant costs, particularly for international and express shipments. Useful information regarding dimensional weight.
Primary carriers from Canada to consider in 2025
There are only four primary options for international and domestic shipping from Canada:
- FedEx Canada: Considered the specialist in express 9 AM and 10:30 delivery to the USA
- UPS Canada: Considered the expert for ground shipping from Canada to the USA.
- Canada Post: Offer low cost for small parcels sent by casual shippers.
- Purolator: Considered the Canadian delivery expert but use other carriers (such as UPS) for their international deliveries from Canada.
- Third Party resellers and parcel experts.. such as Jet Worldwide
- LTL shipping options for pallets between the US and Canada
- LCL and Full shipping containers for shipping ocean to and from Canada
Shipping International Air Cargo versus Ocean from Canada
With the many minimum surcharges for ocean shipments, shipping smaller consignments via air is probably the cheapest price. This is especially when you consider dock to dock . Generally, shipments of less than around 150 kilograms are cheaper via air. Understanding ocean shipping from Canada.
Diversification from air to sea freight can have a huge cost savings. The transit times vary but generally average between 1 to 2 months. A proven strategy is to send a smaller shipment via air freight for faster market access. And follow up the original shipment with pallets to lower the average cost.
Fill in the form below for rates and analysis.
Small Shippers can benefit from resellers, including Jet Worldwide. Although Jet is a leading parcel delivery re-seller in Canada, we are truly a transportation specialists with a wide range of options.
Jet's has been providing international delivery expertise for over 40 years! With an incredible team with decades of experience.
- For small Canadian shippers:Jet provides incredible discounts even for shippers who only send a couple times per year.
- For larger Canadian shippers: Jet's team works as an extension of your team. We offer transparency and multiple carriers options. In effect, by using Jet, you can outsource your transport needs.
- For International companies needed Canadian parcel logistics support: Jet Canada can establish a dedicated service created to service your specific need.
The benefit is great flexibility and better customer support. Our solutions go beyond simple delivery and include full support services.
JetWorldwide.com
