FedEx Corporation will raise shipping rates effective January 6, 2003. FedEx Ground rates will increase an average of 3.9 percent. FedEx Express rates will increase an average of 3.5 percent for shipments within the U.S. and for U.S. export shipments. The Express delivery area surcharge will increase to $1.75 from $1.50, and Saturday pickup and delivery surcharges will increase to $12.50 from $10. Rates for FedEx Express services between the U.S. and Puerto Rico will increase an average of 5 percent.
UPS announced on November 7 that it would raise rates effective January 7, 2002. On average, rates for UPS commercial ground services will increase 3.5%, and the residential premium will increase from $1.05 to $1.10. Rates for overnight and two-day express services will increase approximately 4%, and rates for U. S. export services will increase 3.9%. Both UPS and FedEx have had fuel surcharges in effect since 2000.
In June, USPS instituted rate changes, making significant changes to the way Priority Mail rates were calculated. Prior to June 30, the rates for packages up to five pounds were the same regardless of destination zip code. Now, only the one pound rate is fixed, all other rates are based on the shipping zone of the destination (distance-based). Many online auction sellers prefer using Priority Mail to send items to buyers.