In this week's issue...
USPS Just Added Its First-Ever Fuel Surcharge
For years, the shipping playbook for most small businesses was simple: USPS for lighter, lower-priority packages, UPS or FedEx for anything time-sensitive. That math may start to change…
This April, the United States Postal Service added an 8% fuel surcharge on commercial package shipping, a first in its 250-year history (though only the last 120 or so really apply here 😅)
It applies on top of base postage for USPS Ground Advantage, Priority Mail, Priority Mail Express, and Parcel Select, and is officially billed as temporary, running through January 17, 2027 while USPS transitions to a permanent, market-based pricing model1
Worth noting: USPS itself has called this a possible "bridge" to that permanent mechanism, so even if the 8% line item goes away next January, the underlying pressure pushing rates up isn't likely to…
Eight percent isn't huge on its own. UPS and FedEx have charged fuel surcharges for years, often 15-20% or more. But it closes some of the gap that made USPS the automatic default for so many SMBs. If you ship meaningful volume, it's worth a second look 👀
This isn't an isolated move. Including the April fuel surcharge, USPS has pushed through three separate price increases2 in the first seven months of 2026 alone. That calls for real consideration for any brand or fulfillment center leaning on USPS.
Why this is worth revisiting now
If you haven't compared carriers in a few years, the landscape has shifted in your favor. UPS and FedEx have moved a lot of their SMB acquisition away from direct enterprise sales and toward software rate aggregators, authorized shipping outlets, and multi-carrier platforms. Those partners get access to enterprise-level volume contracts and pass a real chunk of that discount down to smaller shippers
In practice, that means the rate listed at UPS.com or FedEx.com is rarely the rate actually available to you. Businesses that route shipping through the right aggregator, rather than negotiating direct or defaulting to USPS out of habit, are often finding UPS and FedEx a lot more competitive than they were even two or three years ago!
A few things worth checking this month:
Re-run the comparison. If USPS has been your default for Ground Advantage or Priority Mail, get a current quote from a multi-carrier rate aggregator next to your USPS numbers. The 8% surcharge may move the breakeven point
Watch your box dimensions. The surcharge applies to total base postage, so heavier or bulkier packages compound the cost faster. Tighter, dimension-optimized packaging (or Priority Mail Cubic) matters more now than it did in April
Revisit free-shipping thresholds. If you haven't adjusted them since the surcharge took effect, you may be absorbing more margin than you realize
This is a fragmented category with a lot of vendor-side complexity, which is exactly where a second set of eyes tends to find savings. If you want a gut check on your current shipping setup, grab 30 minutes on my calendar
Webinar: Expert-Level LinkedIn Networking, Turning Connections Into Pipeline
At ERC, we spend our time on the expense side of the ledger. Growth matters too, and this month we're bringing in an outside expert to cover ground we don't usually touch
Join me and David Speigel this Thursday, August 20, from 11am to 12noon ET for a live session on turning LinkedIn from a digital business card into an actual revenue channel
Most people use LinkedIn to collect connections. The top performers use it as a predictable pipeline. David will walk through what that looks like in practice, including:
The 5-Hour Playbook: sending 200+ targeted connection requests and 50+ strategic comments a week without losing your day to scrolling
Beyond the Referral Path: opening sales channels outside the local, in-person networks most businesses rely on
The LinkedIn Sales Funnel: turning profile visits and comments into actual conversations and revenue
Authority Building: the specific levers that get high-value clients to notice you
For a preview of David's thinking, he covered similar ground on a recent podcast: watch here
Whether your growth right now depends on referrals, cold outreach, or word of mouth, this is a practical look at building a more predictable channel. See you there!
Onwards and Upwards,
Joe Lapscher
Partner, ERC
1 First-Class Mail, Marketing Mail, Media Mail, and USPS Connect Local are exempt from the surcharge
2 USPS raised competitive prices on January 18, 2026 (Priority Mail, Priority Mail Express, Ground Advantage, Parcel Select); added an 8% fuel surcharge on April 26, 2026; and implemented its next General Rate Increase on July 12, 2026.
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