Carrier Rate Increases for 2017

Every January, following the rush—both of the adrenaline and time varieties—of the holiday season, carrier rates see a price hike. This year is no different and we’re thrilled to bring you the updates, thanks to our partner ShipStation. They’ve tackled each of the big three carriers in the United States.


  • Package Services, effective December 26, 2016
    • Expect UPS Ground services to increase by an average of 4.9%.
    • Expect UPS Air and International services to increase by an average of 4.9%.
    • If your package’s longest side is over 48 inches (formerly 60 inches), the Additional Handling charge will be added to UPS Air and International packages.
    • Come February 6, 2017, the fuel surcharge will be adjusted weekly.
    • Retail rates and SurePost rates will also be increasing on December 26. Click here to see the new retail rates and the additional handling surcharge will apply to SurePost starting January 8, 2017.
    • Click here to see how certain surcharges will be changing.


  • Package Services, effective January 2, 2017
    • Expect FedEx Express shipping rates to increase by an average of 3.9% for domestic, import, and export services—all US-based.
    • FedEx Express and FedEx Ground will be changing their dimensional weight calculation from 166 to 139 (the formula will now be: L x W x H / 139). This will make the dimensional weight heavier (costing you more) than before.
    • FedEx Ground and Home Delivery will both see increases on average of 4.9%.Shipping increases to expect in #2017. Thanks @ShipStation for helping us get our ship together Click To Tweet
    • There are expected rate changes for FedEx SmartPost, but they haven’t been released yet.
    • Surcharges will also be increasing. Click here to see exactly how.
    • Beginning February 6, 2017, FedEx’s fuel surcharge will also be changing weekly.


  • Increases across the board, effective January 22, 2017 (rates shown are Commerical Plus Pricing, the deepest discounts offered): 
First Class Mail 2016 Rate 2017 Rate Average % Increase
Letters $0.47 $0.49 4.3%
Package $2.60 $2.61 ~.4%
  • Priority Mail will see an average increase of 4.5%, which is a 16.8% savings off of retail pricing. To see the new rates beyond Flat Rate services, click here.
Priority Mail (domestic) 2016 Rate 2017 Rate Average Increase
Flat Rate Envelope $5.60 $5.75 2.7%
Flat Rate Legal Envelope $5.60 $6.05 8%
Flat Rate Padded Envelope $5.90 $6.30 6.8%
Small Flat Rate Box $5.90 $6.25 5.9%
Medium Flat Rate Box $11.60 $12.05 3.9%
Large Flat Rate Box $15.85 $16.55 4.4%
  • With Priority Mail Express, the USPS is consolidating their Commerical Base Pricing and the Commercial Plus Pricing to be the same rates. This means a 2.4% average increase on CPP rates, a savings of 11.2% off of retail. To see the new rates beyond Flat Rate services, click here. **Please note that Priority Mail Express does not allow Flat Rate boxes.**
Priority Mail Express (domestic) 2016 Rate 2017 Rate Average Increase
Flat Rate Envelope $20.66 $21.18 2.5%
Flat Rate Legal Envelope $20.66 $21.28 3%
Flat Rate Padded Envelope $20.66 $21.64 4.7%
  • Worth noting:
    • Media Mail: A slight increase for Media Mail 1-lb Single Piece, from $2.61 to $2.63.
    • Parcel Select Ground: A small increase of 2.7%.
    • International Services: First Class Mail International, Priority Mail International, and Priority Mail Express International will NOT see a rate increase.

And there you have it! If anything else changes, we’ll let you know. Thanks ShipStation!


Guest blogger ShipStation

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