Shipping Rates & Contract Negotiation
At ShipSigma we manage, analyze, and optimize over $1Billion in parcel spend to provide you with a deep understanding of the excess of fees your contract has built in and where savings exist. Using our industry-leading cost modeling software, we’ll provide you with a Shipping Savings Guarantee before you negotiate. Once negotiation begins, we'll provide you with a market-best carrier network strategy, contract management & compliance services, surcharge mitigation, and ongoing analysis and optimization opportunities.
We could not say enough good things about our relationship with ShipSigma. Beyond the initial savings, they continue to find us new angles for savings, set up dashboards specific to our needs, and meet with us quarterly to go through reporting/review savings/new opportunities. ShipSigma has been more than just a service for us, they have been a continuous partner as we navigate the difficulties of controlling our freight costs and holding the vendors accountable.
Tyler B. Vice President of Finance, Leading Global Manufacturer
4 hours. It took less than 4 hours of my time for my company to see half a million in annual savings. No headaches, no feet-dragging negotiations, no confusing documents. It was so easy.
Todd M. Vice President, Food Manufacturer and Distributor
The insights and analytics, ShipSigma provided before and after negotiating our carrier agreements, make it clear we have a long-term partner who is aligned with our company values. The cost modeling and rate simulation let us know the exact savings we would see, down to the last cent. After running our historical data, ShipSigma was able to find us almost 28% in annual shipping savings with our same carrier.
Jonica H. Controller, Market Leading Wine Distributor
Our team managed billions of dollars of various category spend. To have ShipSigma guarantee a savings and then fully execute so that we’re realizing increased EBITA within 60 days allows us to focus on other strategic opportunities.
Randy H. Chief Procurement Officer, Leading Provider of Pork Products
We thought we had the best rates. We were told we had the best rates. ShipSigma got us better rates. They found us nearly 25% in savings and helped us renegotiate our contract with our carrier. It was just so easy.
Brad M. Chief Operations Officer, Clothing Retailer
The parcel invoice audit was a lifesaver for us. The team at ShipSigma monitored the weekly audit and noticed that instead of shipping air, over 60% of our packages could have traveled ground with no delay in arrival. They saved us more money than we had ever saved in our manual audit process.
Julie F. Chief Financial Officer, Industry Leading Retailer
UPS Shipping Rates
When you want to ship an item, calculating your shipping cost can be daunting. You may not know whether to use your parcel’s size, weight, or contents to determine the rate. We’re here to clear up that confusion.
In this guide, you’ll learn about standard UPS shipping rates and how to calculate them; as well as see the differences in shipping rates between UPS and other major carriers.
How Does UPS Calculate Shipping Costs?
So, does UPS calculate shipping by the weight, size, or contents of your package? The answer is that UPS, like other carriers, uses various factors, including size and weight, to determine your shipping cost.
Factors That Determine Your UPS Shipping Rates
Size and Weight
When moving loads around, the heavier the load is, the more fuel the vehicle consumes. For this reason, carriers like UPS charge you based on how heavy your package is: the lighter the box, the lighter the charge, and the heavier it is, the more you pay.
*Actual Weight Vs. Dimensional (DIM) Weight
Dimensional weight is a pricing technique that involves calculating a weight estimate using a package's length, width, and height. Dimensional weight reflects package density, which is the amount of space a package occupies compared to its actual weight.
Rates are based on the total actual weight or the total dimensional weight of all packages in a shipment, whichever is greater.
Origin and Destination
UPS shipping routes are based on zones. UPS shipping zones range from Zone 1, which covers the immediate local area, to Zone 8, which covers the farthest distance. The distance between where you post your package (origin zone) and where it is received (destination zone) determines your shipping costs. This zonal pricing is for both domestic rates, like UPS ground rates, and worldwide rates, like UPS international shipping rates.
The distance between the origin and destination zones also affects other facets of your shipment, such as delivery speed.
Shipping Speed
All major carriers, including UPS, differentiate their shipping services by delivery speed. The faster you want your package delivered, the more you pay. Here’s a table showing UPS domestic shipping services with their delivery speeds:
Same Day |
1 Day |
2 Days |
3 Days |
Within 5 Days |
|
UPS Express Critical |
✔ |
||||
UPS Next Day Air Early |
✔ |
||||
UPS Next Day Air |
✔ |
||||
UPS Next Day Air Saver |
✔ |
||||
UPS 2nd Day Air A.M. |
✔ |
||||
UPS 2nd Day Air |
✔ |
||||
UPS 3 Day Select |
✔ |
||||
UPS Ground |
✔ |
||||
UPS Simple Rate |
✔ |
✔ |
✔ |
✔ |
|
UPS Ground with Freight Pricing |
✔ |
Package Contents
Generally, UPS does not price shipping based on the contents of your package. However, there are instances where the shipping cost is based on package contents. Here are a few examples:
Hazardous materials: If the package contains hazardous materials, such as chemicals or batteries, UPS may charge additional fees for handling and transportation.
High-value items: If the package contains high-value items, such as jewelry or electronics, UPS may offer additional insurance options for an additional cost.
Special handling requirements: If the package requires special handling due to its fragility, size, or weight, UPS may charge additional fees for the extra care required.
Additional Costs
UPS also offers various additional services, such as signature confirmation or weekend pickup and delivery, which may result in additional fees.
How Do I Calculate UPS Shipping Costs?
To calculate UPS shipping costs, follow the steps below:
Step 1: Choose Your Preferred Shipping Service.
Choose a UPS shipping service that matches your preferred delivery speed and destination, e.g., UPS Ground or UPS 2nd Day Air.
Step 2: Calculate the Billable Weight and Size of Your Package.
First, weigh your package on a scale to get its actual weight. If the weight is a fraction, round it up to the next whole pound; e.g., 2.6 pounds is rounded up to 3 pounds.
Next, find the dimensional weight of your package with the following steps:
Determine the package dimensions in inches. Then round up each measurement to the nearest whole number.
Multiply the package length by the width by the height. The result is the cubic size (volume) in inches.
Divide the cubic size by the divisor to get the dimensional weight in pounds. Round up any fraction to the next whole pound. Note that UPS uses different divisors for each rate type: 139 for Daily Rates; 166 for Retail Rates.
Dimensional weight formula: Dimensional Weight = (L x W x H) ÷ Divisor
Once you have the actual and dimensional weights, compare the two to determine which is greater. The greater of the two is the billable weight and should be used to calculate the rate. For multiple-package shipments, total the billable weight of all packages.
Determining the size of your package
Use this formula to determine the length and girth of your package:
Length and Girth = Length + 2x Width + 2x Height
For irregularly shaped packages, measure them as if they were in a rectangular box. Maximum size combination: UPS stipulates that packages can be up to 165 inches in length and girth combined.
Step 3: Determine the Destination Zone of Your Package
To find your destination zone, go to the UPS rates page, enter your zip code, and download the UPS Zone Chart.
Step 4: Calculate Your Shipping Cost
Go to the UPS Calculate Time and Cost page and enter your package weight, and destination zone, among other details, and you will get a shipping cost estimate. Alternatively, you can use UPS services like WorldShip, CampusShip, or the UPS App to find the rate for your shipment.
Note that the cost provided by the UPS shipping calculator is an estimate only, and the actual price may vary based on the specific details of your shipment.
What Are the Standard UPS Shipping Rates?
UPS has standard rates for each of its services. Each service is mainly based on shipping distances and delivery times. Below are standard UPS shipping rates for common domestic shipping services.
Standard Rates for Nationwide / Domestic Shipping Services
*Prices are current as of March 2023
UPS Ground
Rates for sending a regular package: From $10.10 to $856.00.
For packages over 150 pounds: From $0.69 to $5.71 (price-per-pound).
UPS 2nd Day Air
Rates for sending a regular package: From $21.64 to $1,139.60.
For packages over 150 pounds: From $1.64 to $7.60 (price-per-pound).
UPS Next Day Air Early
Rates for sending a package: From $65.00 to $1,742.67.
For packages over 150 pounds: From $2.68 to $11.42 (price-per-pound).
UPS Next Day Air
Rates for sending a package: From $35.00 to $1,750.83.
For packages over 150 pounds: From $2.68 to $11.67 (price-per-pound).
UPS Next Day Air Saver
Rates for sending a package: From $31.71 to $1,489.25.
For packages over 150 pounds: From $2.53 to $9.93 (price-per-pound).
UPS 2nd Day Air A.M.
Rates for sending a package: From $23.64 to $1,311.73.
For packages over 150 pounds: From $1.85 to $8.74 (price-per-pound).
UPS 3 Day Select
Rates for sending a package: From $13.66 to $827.47.
For packages over 150 pounds: From $1.23 to $5.52 (price-per-pound).
UPS Ground with Freight Pricing
As of March 2023, the Absolute Minimum Charge (Floor Minimum) is $99.50 per shipment.
Standard Rates for UPS Flat Rate Shipping
UPS offers a flat-rate shipping service known as UPS Simple Rate. To determine the rate for a UPS Simple Rate shipment, refer to the applicable chart below:
Delivery Speed |
||||
UPS Simple Rate Package Size |
Within 5 Days |
Within 3 Business Days |
Second Day Delivery |
Next Day Delivery |
Extra Small |
$10.20 |
$17.70 |
$20.05 |
$29.40 |
Small |
$13.35 |
$21.60 |
$23.85 |
$37.45 |
Medium |
$16.05 |
$30.60 |
$30.55 |
$42.00 |
Large |
$21.05 |
$41.05 |
$54.45 |
$63.00 |
Extra Large |
$26.05 |
$51.50 |
$70.60 |
$81.40 |
Visit UPS Shipping Costs and Rates page for simple rate pricing for Alaska and Hawaii shipments.
For a more precise UPS shipping quote, use the UPS shipping calculator.
What Is the Difference Between FedEx and USPS?
FedEx and USPS (United States Postal Service) are both package delivery services, but there are several differences between them. USPS and FedEx can be differentiated based on the following criteria:
Ownership and Structure
FedEx is a global private shipping company. In contrast, USPS is a government agency that focuses on mail processing and delivery services in the United States, although USPS also offers international shipping.
Delivery Services
FedEx offers various delivery services, including overnight delivery, international shipping, and freight services. USPS also provides a range of delivery services, but its primary focus is delivering mail and packages within the United States.
Delivery Speed
FedEx is generally faster than USPS, especially when delivering packages over long distances. FedEx offers overnight and two-day delivery options for most domestic packages, while USPS typically takes two to three days for domestic packages.
Rates
FedEx shipping rates are generally higher than USPS shipping rates, especially for international shipping. However, FedEx's delivery speed and additional services often justify the higher cost. Rates can vary, so it's best to use a shipping cost calculator.
Get the Lowest UPS Shipping Rates With ShipSigma
At ShipSigma, we combine our wealth of shipping industry experience with AI-powered technology to analyze your shipping contracts and find optimization opportunities. Using this proprietary process, we save our customers, on average, 25.2% of their parcel shipping costs in less than 4 hours of their time.
Reach out to us today to see how we can help you lower your shipping rates.
FAQ
Shipping rates for common USPS services are as follows:
Priority Mail Express - Prices start at $28.75.
Priority Mail - Prices start at $9.35.
First-Class Mail - Prices start at $0.63 at a Post Office.
First-Class Package Service - Prices start at $4.75 at a Post Office.
Media Mail - Prices start at $3.65 at a Post Office.
USPS Retail Ground - Prices start at $8.95 at a Post Office.
Use the USPS shipping calculator for specific rates.
FedEx shipping rates vary greatly from service to service. Use theFedEx shipping calculatorto calculate your rates.
In general, USPS tends to be cheaper for smaller packages shipped domestically. FedEx may offer more competitive rates for larger and heavier packages or international shipments, especially for express or time-sensitive deliveries.
Both. UPS bases its shipping rates on weight, size, destination, and delivery speed.
Each UPS service has a different price by weight. Refer to the UPS rates page for full price-by-weight tables.
Below are the costs to ship a 40 lb package using various UPS services:
UPS Ground: From $22.52 to $265.35
UPS 2nd Day Air: From $73.10 to $335.80
UPS 3 Day Select: From $53.65 to $226.57
UPS Next Day Air Early: From $141.02 to $489.82
UPS Next Day Air: From $111.02 to $473.74
UPS Next Day Air Saver: From $102.49 to $391.28
UPS 2nd Day Air AM: From $82.70 to $368.28
Shipping a 50-pound box with USPS with a 2-4 business days delivery time will cost around $75.96.