2022 Annual Shipping Rate Guide

2022 Annual Shipping Rates

It’s that wonderful time of year where we contemplate our New Year Resolutions and adjust for the Shipping Carrier Rate Increases.

This year the carriers are implementing steeper-then-usual increases in the form of both the general rate increase as well as surcharges. Driving these rate changes are the ever-increasing demand for residential shipments. Continuing into 2022, carriers are looking to cover the costs of massive network expansions, labor shortages and increased demand.

While these increases pose a challenge, they apply to all shippers and are being implemented by all carriers. One way to help offset these increases is by shortening the distance (zones) that each package travels. a2b is pleased to announce that we are opening our largest facility to date in PA. The brand new, Class A facility is finishing construction now and is scheduled to open in March 2022. We estimate that approximately 50% of packages shipped from our Southeast facilities will be better shipped from this northeast location. Put another way, by utilizing our Southeast, Utah and Pennsylvania facilities together, most shipments will arrive in 1-2 days via standard Ground service and remain in zones 2-4 (only a small percentage will be in zone 5).

Please take a moment to review next years’ carrier changes below, adjust your shipping charges accordingly and make time to discuss how our 3-Region Fulfillment Strategy can help you combat the carrier increases.

UPS Shipping Rates 2022

UPS – Effective December 26, 2021:

UPS Ground and Express

UPS’s general rate increase this year comes in at 1% greater than in previous years. Ground and Express will all increase by an average of 5.9%; however, please note that this is an average across all weights and zones. For example, the minimum package charge for Ground will increase 6.85% to $9.36.

Accessorial charges are also increasing as follows:

Address Corrections
The Address Correction surcharge will remain at $18.00.

Area Surcharges – Ground
For packages delivered to certain Zip Codes within the 48 contiguous states:

• Delivery Area Surcharge applied to commercial addresses will increase $0.30 to $3.40.
• Delivery Area Surcharge applied to commercial extended addresses will increase $0.40 to $4.10.
• Delivery Area Surcharge applied to residential addresses will increase $0.50 to $4.80.
• Delivery Area Surcharge applied to residential extended addresses will increase $0.60 to $6.50.
• Delivery Area Surcharges will apply to slightly less overall zip codes than in 2021 (some added, some removed), however the zip codes added represent more population than the zip codes removed.
• Delivery Area Surcharges for Air/Express shipments are slightly higher than those of Ground.
• A new US48 Remote Area Surcharge of $12.00 has been created and will apply to extremely remote addresses. In 2021 these addresses were billed at the “extended” rates.

Residential Surcharges
The Residential Surcharge will increase $0.40 to $4.85 for Ground and $0.35 to $5.35 for Air/Express Services.

Additional Handling Surcharges
All three categories of the Additional Handling Surcharge are increasing.

UPS Shipping Zones

Large Package Surcharge
For domestic shipments, a package is considered a “Large Package” when its length (longest side of the package) plus girth [(2 x width) + (2 x height)] combined exceeds 130 inches or its length exceeds 96 inches. 2022 rates are:

UPS Shipping Zones

UPS Surepost

UPS Surepost rates increase by an average of 4.74% for packages weighing 1-10 lbs in zones 2-8, for which the service is intended.

Area Surcharges – Surepost

For packages delivered to certain Zip Codes within the 48 contiguous states:
• Delivery Area Surcharge applied to residential addresses will increase $1.05 to $3.40.
• Delivery Area Surcharge applied to residential extended addresses will increase $1.15 to $4.10.

Non-Machinable Charge
Applies as follows:
• Any package with one dimension measuring more than 34 inches and not exceeding 48 inches.
• Any package with any two dimensions each measuring more than 17 inches and not exceeding 30 inches.
• Any package weighing over 35 lbs.
• Rate increases $0.30 to $3.70.

FedEx Shipping 2022 rates

FEDEX – Effective January 3rd, 2022:

Fedex Ground, Home Delivery and Express


FedEx’s general rate increase this year comes in at 1% greater than in previous years Ground, Home Delivery and Express will all increase by an average of 5.9%; however, please note that this is an average across all weights and zones. For example, the minimum package charge for Ground will increase 6.85% to $9.36.

Accessorial charges are also increasing as follows:

Address Corrections
The Address Correction surcharge will increase $1.50 to $19.50.

Area Surcharges – Ground and Home Delivery
For packages delivered to certain Zip Codes within the 48 contiguous states:
• Delivery Area Surcharge applied to commercial addresses will increase $0.30 to $3.40.
• Delivery Area Surcharge applied to commercial extended addresses will increase $0.40 to $4.10.
• Delivery Area Surcharge applied to residential addresses will increase $0.50 to $4.80.
• Delivery Area Surcharge applied to residential extended addresses will increase $0.60 to $6.50.
• Delivery Area Surcharges will apply to more zip codes than in previous years.
• Delivery Area Surcharges for Air/Express shipments are slightly higher than those of Ground and Home Delivery.

Residential Surcharges
The Residential Surcharge will increase $0.40 to $4.75 for Home Delivery and $0.35 to $5.30 for Air/Express Services.

Additional Handling Surcharges
All three categories of the Additional Handling Surcharge are increasing and will be determined by zone.
Effective January, 24th 2022:

Fed Ex Shipping Zones

Large Package Surcharge
For domestic shipments, a package is considered a “Large Package” when its length (longest side of the package) plus girth [(2 x width) + (2 x height)] combined exceeds 130 inches or its length exceeds 96 inches. 2022 rates are:

Fed Ex Shipping Zones

FedEx Ground Economy (formerly Smartpost)

FedEx Ground Economy rates increase by an average of 7.03% for packages weighing 1-9 lbs in zones 2-8 and 6.27% for packages weighing 10-20 lbs.

Delivery and Returns Surcharge


Effective January 17th, 2022, Fedex will implement a new $1.00 Delivery and Returns Surcharge that will be assessed on every packaged delivered or returned. It is speculated that Fedex favored this surcharge versus adding $1.00 to its base rates so that it would not be included in negotiated discounts. This means that every package will increase by an additional $1.00.

Area Surcharges – Smartpost
For packages delivered to certain Zip Codes within the 48 contiguous states:

• Delivery Area Surcharge applied to residential addresses will increase $1.25 to $3.60.
• Delivery Area Surcharge applied to residential extended addresses will increase $1.80 to $4.75.

Non-Machinable Charge

Applies as follows:

• Any package with one dimension measuring more than 27 inches (down from 34 inches) and not exceeding 48 inches.
• Any package with any two dimensions each measuring more than 17 inches and not exceeding 30 inches.
• Any package weighing over 35 lb.
• Rate increases $1.70 to $5.10.

USPS Shipping Changes

Effective January 9th, 2022:
The USPS has announced that they will be increasing their rates on January 9th. The effect will be seen on services that we contract directly with the USPS (Priority Mail, First Class, and International Services), as well as for discounted services, such as our Under 1 lb. service from UPS, which uses the USPS for final mile delivery.

Priority Mail will increase an average of 4.92% for packages weighing 1-5 lbs and average of 3.81% for a packages weight 6+ lbs.

First Class Parcel will increase 8.1% on average.

Four Ways to Keep Shipping Costs Low
Here are a few tips for keeping your shipping costs low in 2022

Tips for Keeping Your Shipping Costs Low:

  1. Do what you can to keep products and offers under 1 lb. when possible. Less than 1 lb. packages are eligible for the lowest-cost shipping methods.
  2. Reduce the size of your packaging when possible. Dimensional weight means that larger packages cost more. Also, packages that are deemed too large are subject to additional surcharges, including Additional Handling and Large Package. As a reminder, a2b’s packing systems suggest the smallest carton in order to protect you from not spending more than necessary in this category.
  3. Utilize our Rate Shop shipping codes instead of carrier/service-specific shipping codes. For example, if you want the lowest rate, send us R06 as the shipping method and our system will automatically apply the lowest cost service based on weight and zone. Or if you want 2 Day service, use T10. Our system will choose Ground over 2 Day Air most of the time due to our proximity to most consumers, saving you significant cost from unnecessary upgrades to Air/Express services. Contact support@a2bf.com for questions about how to use Rate Shop codes.
  4. Shorten your zones by expanding geographically with a2b. Talk to us about our 3-Region Fulfillment Strategy, which includes fulfilling from 1.) Southeast (GA / SC), 2. West (UT), and 3. Northeast (PA). Please reach out to your Client Success Manager to start this discussion.

We hope this information is helpful as you plan for 2021. Should you be interested in exploring our fulfillment services, capabilities and potential costs savings, we would be grateful for the opportunity to speak with you!

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