Every year, the major shipping carriers increase their shipping rates. As a result of these carrier pricing changes, ShipBob directly adjusts our fulfillment fees accordingly. This year, we are planning to pass through carrier rate increases in two phases due to the staggered dates in which they go into effect.
First, we will pass through domestic rate increases from Fedex and UPS (excluding 2 Day Air, Overnight, and UPS MI) and international rate increase for UPS Expedited, which will go into effect on January 4, 2021.
Then, we will pass the second and final round of rate increases for USPS, DHL, UPS Mail Innovations, UPS 2 Day, UPS Overnight, and international rates from all carriers, which will go into effect on January 28. 2021.
Given the current circumstances with COVID and high demand for parcel shipments, carrier networks are overloaded, and as a result, they are imposing the highest general rate increase (GRI) we have ever seen. Carriers like DHL, UPS MI, and UPS 2 Day have imposed a GRI of 15-25% on ShipBob (where we have historically seen increases around 5%), as their costs for labor and resources have gone up significantly.
In the spirit of partnership, ShipBob is going to absorb some of these general rate increases from the carriers and pass only a portion of them on to our customers.
Domestic rate increases for 2021
All of the rate increases below are averages across weights and zones, and include fuel surcharges.
Ground: 5.49% increase
Surepost: 6.18% increase
Expedited (international only): 5.23% increase
Overnight: 4.16% increase
Ground: 5.03% increase
Home Delivery: 5.03% increase
2 Day: 5.30% increase
SmartPost: 5.1% increase
Standard Ship Option Impact
Below is a table showing the breakdown by weight ranges.
While the increase for packages under 1 pound is 10.4% on average, please note that the holiday surcharge for packages under 1 pound ended on 12/27/20. Additionally, we are seeing an improved performance with UPS MI, and to further offset the increase, please let us know if you would like us to turn UPS MI back on for your account here if you previously requested that we turn it off due to past delays.
First Class: 5.13% increase
Priority Mail: 8.11% increase
Media Mail: 3.70% increase
eCommerce and GlobalMail: 10.4% increase
Mail Innovations: 10.4% increase
2 Day Air: 10% increase
For all domestic ship options, please view the shipping rate percentage increases here.
International rate increases for 2021
Shipping from any of our US fulfillment centers to other countries:
Top countries (Australia, Germany, France, Canada, New Zealand, Netherlands, Sweden, Singapore, United Kingdom): 5.94% average increase across weights and zones
All other countries: 9.04% average increase across weights and zones
For all international ship options and average shipping rate percentage increases for each country, please see here.
Shipping from our Ottawa, Canada fulfillment center:
All Ship Options: 8.41% average increase across weights and zones
Shipping from our Kilkenny, Ireland (EU) fulfillment center:
All Ship Options: 8% flat increase across all weight and zones
International dimensional weight changes
International orders over 1 pound have always been subject to dimensional weight. Now, international orders under 1 pound will also be charged on maximum of dimensional weight and actual weight (instead of actual weight), Dimensional weight will be calculated as follows: (L x W x H) / 139.
Note: The international dim weight divisor has NOT changed — only the weight for which it qualifies. You can learn more about dimensional weight here.
Surcharges for 2021
All of the surcharges below include fuel surcharges.
Additional Handling Surcharge
These apply to shipments weighing more than or equal to 50 pounds or with the longest side greater than 48 inches or second longest side greater than 30 inches. Notes:
It now applies to any package with its length plus girth combined exceeding 105 inches.
It’s increasing from $26 to $27.50 (a $1.50 increase).
Large Package Surcharge
These apply to shipments with a length greater than 96 inches or a girth length plus girth combined exceeding 130 inches. Note:
It’s increasing from $130 to $136.50 (a $6.50 increase).
Signature Required Surcharge
UPS: It’s increasing from $5.67 to $5.97 (a $0.30 increase).
FedEx: It’s increasing from $5.67 to $5.97 (a $0.30 increase).
An additional $3.40 per package applies to the following:
Any package with one dimension measuring more than 34 inches.
Any package with any two dimensions each measuring more than 17 inches.
Any package weighing over 35 pounds.
ShipBob will NOT increase the Address Correction, Delivery, and Extended Area Surcharges that UPS and FedEx have increased. To keep pricing as simple as possible, ShipBob will refrain from passing along these costs to you like we’ve done in past years.
Updated peak holiday surcharges
FedEx and UPS are anticipating the current shipping volume surge to continue into the new year and decided to extend the peak holiday surcharges indefinitely. Once they announce end dates, we will let you know and you will no longer be charged these surcharges.
Below is an updated schedule for the remaining holiday peak surcharges. The end dates for all other existing holiday surcharges will remain (ending on 12/27 or 1/17), as noted in our carriers peak holiday surcharges Help Center article.
Other pricing changes
Special projects labor charge to increase to $40/hour from $35/hour, as minimum wage and labor rates are going up.
Receiving will continue to be $25 for the first two hours, but as of 1/28/21, after two hours, we will charge $40/hour, up from $35/hour.
For any questions, please contact your Merchant Success Manager or ShipBob’s Merchant Care team for help.