LaserShip/OnTrac will be increasing ground shipping rates by a 6.9% average beginning Jan. 1, 2023, according to announcements by the parcel carrier.
The company, a result of the 2021 merger of eastern U.S.-focused LaserShip and western U.S.-focused OnTrac, disclosed the rate increases on its separate LaserShip and OnTrac websites. The carrier will also increase its residential delivery fee from $4.85 to $5.25 and additional handling fees from $17 to $18.50 starting Jan. 1.
OnTrac increased its ground rates by a 5.9% average on Dec. 26, 2021, according to Shipware and an archived webpage of the company’s site. Ground is OnTrac's most popular shipping service, per its website.
General rate increases are standard in the industry. Carriers maintain the hikes allow them to invest in their networks to keep service strong and capacity at a healthy level. Several parcel carriers plan to implement higher general rate increases for 2023 versus previous years, as they navigate inflationary pressures and easing home delivery demand.
Many follow the standard set by FedEx and UPS — both of which will soon increase rates by 6.9% on average — or prop themselves up as a more cost-effective alternative to the two delivery giants.
Lone Star Overnight, a parcel carrier covering the Southwest and Central U.S., will increase its base rates by 6.2% on average starting Jan. 2. The company's rate increase for 2022 was 5.9%.
"Compared to FedEx and UPS, our express, eCommerce, and ground rates are very favorable in comparison to key weights and zones with those other carriers," Andrew Townsend, chairman of the board, said in a statement.
