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Shipping Tips & Solutions

Here's Why Holiday Shipping Rates Are Rising

It's time again for peak season shipping. Here's why shipping is so expensive during the holidays.
Here's Why Holiday Shipping Rates Are Rising
Alexandra Ortolani

By Alexandra Ortolani

 

November 16, 2021

Key Points:

  • USPS, FedEx, UPS, and other major courier companies are implementing temporary shipping rate increases this holiday season
  • The surge of holiday shipments and the supply chain crisis are key reasons as of why shipping is expensive in 2021
  • USPS customers can expect to pay an extra $0.25 to $5.00 for shipping parcels this holiday season

It’s time again for the holiday season. For eCommerce merchants, this means it’s the busiest time of the year. An estimated 850 to 950 million packages will be delivered during the holidays, and shipping rates are only going up.

While it’s supposed to be a holly jolly holiday season, USPS, FedEx, UPS, and other major courier companies are implementing temporary shipping increases for the holiday season. Plus, holiday shipping delays are expected with the influx of shipments. So, how can eCommerce merchants prepare for additional holiday shipping surcharges?

In this blog, we’ll go over why shipping is so expensive during the holiday season. That way, you know exactly how to prepare your eCommerce business for peak season shipping so customers can have a jolly holiday shopping season.

Rate Boxes and Envelopes

Table of Contents

Why is Shipping So Expensive?

There’s no one-size-fits-all cost to shipping packages. The final shipping cost of your parcel depends on factors such as:

  • Package weight
  • Package dimensions
  • Shipping distance
  • Shipping speed

In this section, we’ll go over common reasons why holiday shipping is expensive, so eCommerce merchants like yourself can prepare for the holiday shipping season like a well-seasoned pro.

Reasons Why Shipping is So Expensive

Have you noticed that holiday shipping increased this peak season, and you’re not sure why? You can thank  Covid-19, the supply chain crisis, and the surge of holiday shipments for the increased shipping rates.

We’ll go more into detail so you can get a better idea of why holiday shipping is more expensive this peak season.

The surge of holiday shipments

Major courier companies like UPS, FedEx, and USPS are experiencing an increase in shipments during this holiday season. Having said that, courier companies need to better prepare for the surge of shipments by hiring seasonal, temporary workers.

USPS is hiring more than 40,000 seasonal workers in preparation for the holiday season. Similarly, UPS is hiring 100,000 seasonal workers to curb the influx of shipments. So if you're looking to receive your package by Christmas, customers may want to shop early to avoid any further delays.

Global supply chain crisis

Supply chain issues have been disrupting the global market. The global average price to ship a 40-foot container has more than quadrupled in the last year since Covid-19. For instance, a full container from Asia to the US costs nearly $20,000 一 with prices still rising.

Related: The Rise of Freight Shipping Rates in 2021

Shipping Rate Increase from USPS, FedEx, and UPS

If you’re shipping during the holiday season, make sure you account for temporary rate increases from major couriers, so there are no hidden surprises when it comes to shipping.

Additional Surcharges with USPS

USPS is implementing temporary rate increases on USPS services, which will be in effect between Oct. 3 and  Dec. 26. As a result, merchants can expect to pay an extra $0.25 to $5.00 for shipping parcels this holiday season.

This means all your favorite USPS shipping services like Priority Mail Express International, Priority Mail Express Parcel, Express Parcel Select Ground, or even USPS international shipping rates are experiencing temporary rate increases.

Here are the USPS holiday rates in 2021:

  • $0.75 increase for Priority Mail, Priority Mail Express Flat Rate boxes and envelopes
  • $0.30 increase for First Class packages
  • $0.25 increase for Zones 1-4 (0-10 pounds)
  • $0.75 increase for Zones 5-9 (0-10 pounds)
  • $1.50 increase for Zones 1-4 (11-20 pounds)
  • $3.00 increase for Zones 5-9 (11-20 pounds)
  • $2.50 increase for Zones 1-4 (21-70 pounds)
  • $5.00 increase for Zones 5-9 (21-70 pounds)

For eCommerce merchants who need further assistance, visit your local post office location to inquire about USPS shipping prices. Alternatively, connect with Easyship's shipping experts to create a shipping strategy fit to your eCommerce needs.

Additional Surcharges with FedEx

Shipping with FedEx this holiday season? Surprise 一  merchants can expect temporary rate increases. To ship with FedEx, you'll pay at least $1.50 extra per package for peak season shipping.

Here are the additional surcharges to expect when shipping during the busiest season:

Shipping Rates Going Up

Additional Surcharges with UPS

Unfortunately, if you’re shipping with UPS during peak season, you’ll pay additional shipping surcharges anywhere from $0.11 to $2.61 per pound for shipping. Be aware; UPS is increasing its rates from Oct. 31 through January 15, 2022.

Here are the additional surcharges for shipping with UPS this holiday season:

Shipments from China to the US

Temporary Rate Increase from China to US

Shipments from Vietnam to the US

Temporary Rate Increase from Vietnam to US

Shipments from Japan to the US

Temporary Rate Increase from Japan to the US

Shipments from Australia, New Zealand, and other Asian countries to the US

Temporary Rate Increase from Australia/New Zealand/Asia

Shipments from the US to Australia and New Zealand

Temporary Rate Increase from Australia to New Zealand

Shipments from Europe to the US and North America

Temporary Rate Increase from Europe to North America

Additional Handling Surcharge

Temporary Rate Increase - Additional Surcharge

Related: Shipping Costs Are Rising - Here’s What to Expect

How to Curb Holiday Shipping Delays 2021

You don’t need to search high and low for the cheapest holiday shipping rates. Instead, using a reliable shipping platform can grant eCommerce merchants access to the best available shipping rates, especially for peak season holiday shipping.

Easyship offers up to 70% off discounted shipping rates on 250+ couriers. So instead of paying retail shipping rates for major couriers like USPS, FedEx, and UPS, eCommerce merchants can get high-volume discounts using our Free Shipping Rates Calculator.

Say you want to ship a 5-pound package from the US to the United Kingdom. We’ll use our free shipping rates calculator to figure out how much it costs.

Cheapest Shipping Rates

As we can see, it costs $46.26 for DHL eCommerce Parcel Standard with $28.35 in savings. So instead of paying retail rates for shipping, Easyship offers high-volume, exclusive discounts for eCommerce merchants across the globe.

Ready for the holiday shipping season? Sign up for a FREE Easyship account to gain instant access to the best available shipping rates this peak season


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