Update: Update – 4/1/2015: As USPS postponed its rate increase that was scheduled for 4/26/2015, FedEx has also postponed this pass-through rate increase. It is also noted that not all SmartPost shippers would be effected if the USPS increased pricing takes place. The pass through increase would be effecting the sub 1 lb. shipments, only for the shippers who have this service.

FedEx is informing its shippers that SmartPost rates will receive a cost increase on April 27, 2015. The basis for the cost increase is the recent announcement by USPS about postage increase. SmartPost service already received a general rate increase (GRI) in 2015. On April 27, the SmartPost rates will receive an additional 8.3% increase. The shippers who negotiated a GRI cap will still receive some increase, albeit not the full 8.3%. FedEx has not published the new ratesheets yet. It is expected that UPS will follow suit with the cost increase on its Surepost service.

FedEx SmartPost and UPS SurePost are the lower cost options for parcel with no delivery time commit. The final mile delivery is performed by USPS in most cases. 

USPS postage increase has been accepted on January 26, 2015 and the Parcel Select service rates will increase 8% on average, and First Class Package service rates will increase 5.1%. The new USPS rates will be effective April 26, 2015.

2015 has been a hard year for parcel shippers. The dimensional weight rule change to Ground and SurePost services, the general rate increase of 2015, adjustment of the fuel indices, increase to the USPS rates and now the second increase to the SmartPost rates in a year will hit the parcel shippers' bottom line. 

For more information, or to learn how enVista can help shippers analyze and mitigate the cost increases, visit www.envistacorp.com.