Sharing what we know about the USPS rate increase, plus Fedex and UPS fuel rates
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Howdy Nice Partners,
Carrier rate increases are continuing to have a moment, and unfortunately, we’ve got more updates to pass along.
We’re sharing the full picture on a few ongoing and upcoming changes happening this month, along with some resources we hope can help:
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USPS Emergency Rate Increase: Effective April 26
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USPS is rolling out what they're calling a "time-limited" price increase of 8% beginning Sunday, April 26, 2026, affecting Priority Mail, Ground Advantage, and Parcel Select services.
USPS has framed this as a temporary adjustment set to expire January 17, 2027, citing rising transportation costs and a need to better align its pricing with current market conditions.
A few things to note: This is separate from the 7.8% increase earlier this year that Nice negotiated an exemption from. USPS has classified this as an "emergency" increase and has shared no one is exempt, including Nice. Nice will pass this through as a direct cost with no added markup.
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Setting Expectations: While the "time-limited" label sounds temporary, we don't have a lot of confidence this increase will actually be reversed when the time comes. We thought it was important to set realistic expectations rather than leave you planning around a rollback that may never materialize.
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Fedex & UPS Fuel Surcharges
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On top of the USPS news, FedEx and UPS fuel surcharges have continued to reach historic highs, driven in large part by the ongoing Iran conflict and its impact on global diesel prices.
Since mid-January, FedEx fuel surcharges have increased 28.25% and UPS surcharges have increased 32.53% overall, with the majority of the increases arising over the past two months.
While we negotiate directly with the carriers to get lower-than-market fuel surcharges, the current volatility still impacts our rates.
Some good news: Fuel surcharge rates are not permanent. They are recalculated each week and can cool back down if, and when, fuel prices ease.
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How Fuel Surcharges Work: Rather than adjusting their base rates every time fuel prices move, carriers calculate a separate surcharge percentage tied to the current cost of diesel. That number gets layered on top of every shipment. Think of it as a floating fee that goes up and down with the fuel market - which is why what's happening with oil
prices globally has a direct effect on your shipping invoice.
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Reducing shipping costs is a top priority for our team. We're in weekly communication with all carrier reps to push back on surcharge rates wherever possible, and we're actively exploring additional ways to deliver more margin relief for our partners.
While we keep working on our end, we've also pulled together a few resources to help you find additional savings in the meantime: Your Account Manager is also available to review your current carrier mix and service tiers to identify where adjustments could lower your overall shipping spend. Don't hesitate to use them as a resource!
Grateful to be your fulfillment partner,
- The Nice Team
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