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Carrier Updates and Resources

Several events in the last 18 months, including the COVID-19 pandemic, Brexit, significant weather events, and more, created a substantial shift in the global shipping market and, because of the increase in shipping volumes attributable to the surge in e-commerce, carriers continue to enact an unprecedented number of rate increases, surcharges, and fees.

As global, national, regional, and local shipping carriers try to keep pace with the increase in e-commerce demand, Logistyx continues to track and summarize some of the most recent and impactful changes in carrier services and shipping costs to offer guidance and solutions for shippers.

As these changes occur faster than ever, parcel shippers need the ability to forecast how any change may impact their own fulfillment efforts and a flexible multi-carrier parcel shipping network can empower them to maintain service levels and margins. Logistyx can bring calm to the chaos with business intelligence, multi-carrier shipping, and more. Contact us to find out how.

Carrier Updates

fedex testing drones

April 5, 2022

FedEx announced a partnership with Elroy Air to test autonomous drones for middle mile delivery between sortation locations. According to a press release from the companies, “FedEx believes that continued innovation and automation will improve safety, efficiency, and productivity for the company’s 600,000 team members as they continue to move the world forward.”

FedEx and Elroy Air hope to begin flight testing in 2023 pursuant to certification.


USPS non-standard fees

March 29, 2022

The United States Postal Service (USPS) will implement new fees for non-standard and dimension non-compliance on April 3. According to its filing with the Postal Regulatory Commission, the fees are:

Non-Standard Fees: Add the following fees to parcels that exceed certain dimensions, as specified below:
   Length > 22″ – $4.00
   Length > 30″ – $15.00
   Cube > 2 cu. ft. – $15.00

Dimension Non-Compliance Fee: Add $1.50 for commercial parcels that exceed 1 cubic foot or with a length greater than 22 inches, if the customer did not provide dimensions or provided inaccurate dimensions in the electronic manifest file.

Originally slated for late January, USPS delayed the fee rollout to “provide the industry with additional time to plan and adjust for these changes.”


DHL warehouse robot

March 2, 2022

DHL announced a $15 million investment in warehouse automation via Boston Dynamics robotics solutions. According to the press release:

“The companies have signed a multi-year agreement that begins with equipping DHL facilities with Stretch, Boston Dynamics’ newest robot specifically designed to automate the unloading process in distribution centers.

This agreement is the culmination of strategic collaboration between the two companies over the past few years as Stretch was being developed and tested. Boston Dynamics will deliver a fleet of Stretch robots to multiple DHL warehouses throughout North America over the next three years. The deal with DHL marks the first commercial purchase of Stretch, which was unveiled in 2021.

The investment is part of DHL Supply Chain's Accelerated Digitalization agenda, a strategy for developing and scaling innovative solutions and new technologies. Stretch will tackle several box-moving tasks in the warehouse, beginning with truck unloading at select DHL facilities. Following the first deployment, the multi-purpose mobile robot will handle additional tasks to support other parts of the warehouse workflow, which will effectively automate warehouse operations.”

The investment is another example of carriers seeking ways to optimize operations throughout shipping, logistics, and the supply chain as they continue to scale to meet surging growth in e-commerce and offset the impact of rising fuel costs, ongoing worker shortages, and other challenges.


USPS Connect

February 25, 2022

USPS announced it will move USPS Connect beyond the test-market phase to a nationwide rollout, expanding next-day delivery for local customers. The press release also details other available service levels based on shipping distance:

• USPS Connect Local is a new way for local businesses to reach local customers affordably and quickly. It is rolling out in select locations starting today. USPS Connect Local offers affordable next-day service in all locations, with same-day delivery, Sunday delivery and pickup options in select locations. This offering also includes USPS Connect Local Mail, an affordable First-Class Mail option for documents up to 13 ounces. Businesses can enter USPS Connect Local packages and mail at the receiving dock of the designated postal facility or take advantage of free en-route pickup when their carrier delivers their mail. Free flat-rate bags, boxes, and envelopes are available via Click-N-Ship.

• USPS Connect Regional provides next-day regional entry and delivery of Parcel Select packages and Parcel Select Lightweight packages. Businesses should consult with USPS representatives to identify the entry points and options that work best for them. Most packages will be delivered the next day within a broad specified region.

• USPS Connect National provides delivery solutions for businesses of all sizes. They can benefit from the Postal Service’s new mail processing equipment and reconfigured network to receive reliable delivery of packages through First-Class Package Service, Parcel Select Ground, and Retail Ground.

• USPS Connect Returns is a service for businesses to offer their customers convenient returns, with free en-route pickup by their carrier or drop-off at a nearby Post Office location.
Contact Logistyx today to ensure the USPS new service offerings are part of your multi-carrier shipping network.


DHL Cold Chain

February 11, 2022

DHL announced a $400 million expansion to its cold chain storage for pharmaceutical and medical device distribution. The press release says the investment will:

• Expand the device distribution network footprint by 27 percent this year – nearly 3 million additional square feet

• Include six new U.S. sites by the end of 2022

• Invest in new buildings and technology, as well as the fit-out and start-up of new or expanded operations

The expansion comes on the heels of the global COVID-19 pandemic which increased demand for cold chain storage. Logistyx works closely with Pfizer for its cold-chain vaccine distribution.



microsoft fedex partner

January 26, 2022

FedEx and Microsoft announced an expansion to their partnership, introducing a cross-platform “logistics as a service” for retailers, merchants, and brands. According to the press release:

“The companies announced plans to introduce a unique data integration coupling data insights from FedEx with Dynamics 365 Intelligent Order Management to help brands access new information and capabilities to better fulfill, ship, and service customer orders while easily integrating with their existing ecommerce platforms.

This cross-platform approach helps brands deliver modern, high-value experiences directly to their customers including faster, more cost-effective delivery; near real-time delivery status communications; and convenient, frictionless returns with approximately 60,000 drop-off locations and printerless QR codes.

For brands facing increased pressure to build affinity while managing higher order volumes, ensuring cost-effective fulfillment, and reducing costly customer service calls, this new technology brings unprecedented opportunity to leverage existing systems of record, optimize fulfillment, and deliver on their order promises with increased precision, while benefiting from a more complete view of their customer.”

The partnership is a signal the industry continues to seek creative ways to ease the pressures of exploding e-commerce volumes and rising customer expectations coupled with growing challenges associated with the global pandemic, including capacity limitations, rising costs, staff shortages, and supply chain delays (see carrier updates below).

While the new FedEx and Microsoft partnership is a step in the right direction, it lacks one very important component to managing these issues: multi-carrier shipping handled via carrier capacity management. Moving to a multi-carrier shipping network untethers shippers from single carriers and enables them to select the best carrier and service based on cost, capacity availability, and shipper-established business rules.



fedex air delays omicron

January 7, 2022

The Covid-19 pandemic continues to rear its ugly head. FedEx announced the Omicron variant has caused a staffing shortage as infection rates climb among personnel in its air network.

FedEx isn’t alone, of course. Other major carriers, including the USPS, have faced recent staffing shortages due to the spread of Covid-19. Airlines have been hit hard as well, with both cargo and passenger flight cancelations and delays. As reported by FreightWaves:

“In the air cargo sector, for example, Cathay Pacific suspended most cargo flights for a week and will only operate at about 20% of pre-pandemic during the first quarter because of stricter quarantine provisions in Hong Kong that are removing pilots from duty.”

While we all hoped the pandemic and its associated effects would be in the rearview mirror by now, 2022 seems poised to encounter many of the same pandemic-affected shipping delays of the last two years. As the saying goes, shippers should “hope for the best, but plan for the worst.”

Contact us today to learn how advanced multi-carrier parcel shipping technology can help your organization with its carrier capacity management to quickly adapt to fluid situations such as carrier delays due to staff shortages and other events.



USPS Announces 2022 Rate Increase

November 10, 2021

The U.S. Postal Service (USPS) announced price increases for shipping services set to take effect January 9, 2022. The proposed hikes would raise pricing for shipping services approximately 3.1 percent for Priority Mail service and Priority Mail Express service. Prices for flat-rate boxes will rise by at least 60 cents and as much as $1 per piece depending on the size of the box.

The USPS said its rate changes are meant to contribute to its $40 billion of investments in people, technology, and infrastructure over the next 10 years to modernize and improve its operations and customer experience.



USPS Shippers-1

October 28, 2021

Effective December 26, 2021, published rates for UPS Ground, UPS Air and International services will increase an average net 5.9%. UPS says the rate increase “helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.”

The UPS rate increase follows similar announcements from FedEx in September and DHL in October (both included below).



UPS Service Guarantee Next Day Air

October 11, 2021

Effective October 18, 2021, and until further notice, UPS has adjusted delivery commitment times for UPS Next Day Air destined to residential locations with a typical delivery time of 10:30 am, extending it to 12:00 pm. Any applicable Service Guarantee with respect to Next Day Air packages will be based on these revised delivery commitment times.

Back on March 26, 2020, UPS suspended its Service Guarantee for all shipments from any origin to any destination. The UPS Service Guarantee has been reinstated for select air and international services but remains suspended for all other UPS shipments not specified on its site.



DHL Raise Rates Shipments US Customers

October 1, 2021

Starting January 1, 2022, DHL Express plans to raise rates for U.S. shippers by an average of 5.9%. The increase will apply to U.S. account holders shipping to or from the 220 countries and territories DHL Express serves. DHL increased rates by an average of 4.9% for 2021, and by 5.9% on average for 2020. Last month, DHL Express said it would invest $360 million in upgrading and adding facilities in the Americas and bolstering its freighter fleet to handle surging e-commerce volumes in its network.



cross-border e-commerce

September 30, 2021

Effective October 1, 2021, the United States Postal Service (USPS) will implement new service standards for First-Class Mail and Periodicals meant to increase delivery reliability, consistency, and efficiency for its customers and across its network. Most First-Class Mail (61 percent) and Periodicals (93 percent) will be unaffected by the new service standard changes. Standards for single-piece First-Class Mail traveling within a local area will continue to be two days. The Postal Service will increase time‐in‐transit standards by one or two days for certain mail traveling longer distances. Some experts worry the new standards might hurt mail recipients by slowing USPS delivery service even more.

Additionally, beginning October 3 through December 26, the USPS will temporarily increase prices on all "commercial and retail domestic packages" due to the holiday season. The price increases will not affect international products.



FedEx 2022 Average Shipping Rate Increases

September 21, 2021

Effective January 3, 2022, FedEx Express shipping rates will increase approximately 5.95% on average across U.S. domestic, U.S. export, and U.S. import services. FedEx Ground services are also expected to increase as well. Specifically, rates will increase 5.9% across those using FXF PZONE and FXF EZONE. Those who use FXF 1000 and 501 will see shipping rates increase 7.9%. This rate hike will be levied on shipments within the United States (including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands) and between the contiguous United States and Canada. Freight shipping rates will also be increased for shipments within Canada, Mexico, and between the contiguous United States and Mexico.



UPS - Roadie

September 10, 2021

United Parcel Service Inc. (UPS) recently announced a deal to buy Roadie Inc., a technology platform that uses gig workers to enable local same-day delivery. Roadie’s technology platform will provide opportunities to improve existing UPS small package capabilities, while also adding new UPS services for the upcoming peak holiday shipping season when demand for local delivery will surge. As the growth of e-commerce and demand for quicker deliveries continues, the acquisition will allow UPS to break into the same-day delivery market just as major retailers like Amazon, Target, Walgreens, and Walmart have also been building out same-day delivery capabilities. Logistyx already helps retailers and logistics providers ship with both UPS and Roadie as part of its extensive library of 550+ carrier integrations.



ontrac peak business

August 18, 2021
Regional parcel delivery carrier OnTrac, which serves eight western states, will not take any new fourth-quarter business after September 1, a company executive recently confirmed. Businesses will need to be fully onboarded with the carrier as of that date for their parcels to be moved during the peak holiday shipping season.



USPS peak season surcharges

August 18, 2021

The United States Postal Service (USPS) announced peak season surcharges for 2021. The planned peak season pricing would affect prices on commercial and retail domestic competitive parcels. International products would be unaffected. Though less common from the USPS, the peak season surcharge isn’t unprecedented; they announced a similar surcharge for commercial customers ahead of a 2020 peak season when parcel volumes and capacity shortages were both anticipated and later came to fruition. The 2021 surcharge extends beyond commercial shippers to individuals shipping even single packages.



USPS Shippers-1

August 13, 2021

FedEx implements changes to peak surcharges and fees, entering another holiday season during which it expects continued high demand for capacity and increased operating costs across its network. The FedEx surcharges will apply to customers tendering, on average, 25,000 or more weekly shipments under the company’s residential and Ground Economy products. The carrier again anticipates the surge in residential volume to carry into the new year.



new UPS surcharges

June 30, 2021

Looking ahead to the upcoming holidays, when another volume surge is likely to create an extended peak shopping season, UPS is again imposing surcharges across its services, hitting major shippers particularly hard. The holiday surcharges, which kick in October 31 and run until January 15, will, as they did in the 2020-21 cycle, whack UPS shippers that tender the highest volumes. In extreme cases, surcharges will run as high as $6.15 per package.



fedex freight capacity crunch

June 15, 2021

About 1,400 less-than-truckload (LTL) FedEx Freight customers are now in need of a new freight carrier as FedEx Freight recently announced it would cut off their service as it attempts to rectify delays caused by an overwhelming amount of tonnage spurred by the COVID-19 pandemic and recovery.



FedEx UPS Increase Surcharges

May 27, 2021

The impact of COVID-19 continues to put a strain on shipping, generating elevated volumes, high demand for capacity, and increased operating costs for carriers. As such, both FedEx and UPS have announced additional peak surcharges due to the pandemic’s continued disruption of the shipping industry. Effective June 21, 2021, FedEx will implement percentage increases to three delivery surcharges, including an additional handling surcharge, a residential delivery surcharge, and a peak surcharge on Ground Economy. Recently started on May 23, the UPS surcharge increase now applies to certain international shipments originating from Asia.



fedex surcharges 2021

December 22, 2020

Faced with extremely high demand for capacity and increased operating costs across its network, FedEx announced new peak season surcharges, effective early November. Company officials said they did this not only to provide their customers with the best possible service during an understandably challenging time, but also to help mitigate risk from what was expected to be historic holiday shipping volumes.



FEDEX APAC surcharges

December 1, 2020

Following FedEx’s previously announced rate increases and late fees set to take effect in 2021, the shipping giant implemented another surcharge increase for parcel and freight shipments originating in Asia Pacific (APAC). According to FedEx, the reasoning behind the increased surcharge is limited air cargo capacity and incurred incremental costs related to COVID-19.



fedex 2021 rate increases

September 17, 2020

Retailers can continue to expect rising prices for shipping parcels beyond peak season 2020, as FedEx recently unveiled rate increases and late fees set to take effect in 2021. Starting in January, FedEx will raise rates an average of 4.9% for its Ground, Express, and Home Delivery services, along with charging a 6% late fee to U.S. FedEx Express and FedEx Ground customers who don’t pay invoices within their agreed upon payment terms.



holiday carrier surcharges-1

September 2, 2020

Record shipping volumes show no signs of slowing. As a result, many carriers are planning for peak season and turning once again to surcharges as a way to protect their profits. Organizations like UPS, FedEx, and even the USPS have already announced they are adding a variety of holiday carrier surcharges to their prices.



UPS Reduces Peak Surcharge China-1200

July 7, 2020

The worldwide COVID-19 pandemic continues to evolve and changing patterns have resulted in a UPS peak surcharge reduction on shipments from China to several countries. As of June 28, 2020, UPS reduced the peak surcharge rate on shipments originating in China Mainland and arriving in the U.S. Surcharges apply to the same categories of service now as they did previously.



parcel shipping carrier surcharges-2

April 28, 2020

While carriers are providing an essential service keeping supply chains moving and ensuring products make it to their final destinations, social distancing guidelines can make processing orders – and delivering them – more difficult. To manage high demand and limited capacity, many carriers have added surcharges to their services, including DHL, FedEx, and UPS.



temporary peak surcharges-1

March 30, 2020

As the world economy reels from the current COVID-19 coronavirus pandemic, industries are feeling the effects. For the global shipping industry, the pandemic has resulted in business being more intense than ever before. UPS, FedEx, and DHL have all announced temporary peak surcharges related to the coronavirus.



Carrier Related Resources

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We are the leader in Transportation Management for parcel shipping, providing an unmatched global multi-carrier network, predictive analytics, and full visibility into customer deliveries. Our software boosts parcel shipping efficiencies and other business KPIs for many of the world’s top retailers, manufacturers, and logistics providers.

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