US Shipping 101, Part 2: A Detailed Overview of Service Levels with FedEx, UPS, and USPS

When it comes to shipping from your US warehouse or 3PL, choosing the right service level is crucial for meeting your customers' expectations and managing your budget. FedEx, UPS, and the United States Postal Service (USPS) each offer a variety of domestic and international shipping options to cater to businesses of all sizes and needs.

In this blog post, we'll provide a detailed overview of the different service levels offered by each carrier, helping you make an informed decision for your shipping requirements. If you’re not ready for a deep dive, consider starting wtih part 1 of this series, which provides a more basic high level comparison of the three carriers.

It’s important to note that almost no one pays retail rates for FedEx or UPS services. If you ship any regular volumes whatsoever, you should setup your own account with each carrier and see what rates you can negotiate. Or, hire a 3PL like Rush Order to take advantage of the volume discounts associated with our large aggregated spend with each carrier.

FedEx Service Levels

Most Common FedEx Domestic Shipping Options:

1. FedEx First Overnight: Delivers packages by 8:00 AM or 9:30 AM the next business day, depending on the destination. Be careful with First Overnight service, as volume discounts for even the largest of shippers are difficult to come by.

2. FedEx Priority Overnight: Offers next-business-day delivery by 10:30 AM, with delivery by noon or 4:30 PM to remote areas. As a daily FedEx shipper, you are very likely to achieve volume discounts for Priority Overnight service, as well as each of the following FedEx services below.

3. FedEx Standard Overnight: Delivers packages by 3:00 PM the next business day to most US addresses.

4. FedEx 2Day A.M.: Offers two-business-day delivery by 10:30 AM to most US addresses.

5. FedEx 2Day: Provides delivery within two business days, with delivery by 4:30 PM to most areas.

6. FedEx Express Saver: Delivers packages within three business days by 4:30 PM.

7. FedEx Ground: Cost-effective ground shipping with delivery typically in 1-5 business days.

8. FedEx Home Delivery: Specializes in residential deliveries, with delivery typically in 1-5 business days, and additional service options such as evening and weekend deliveries.

9. FedEx SmartPost: A cost-effective option for low-weight shipments, leveraging USPS for final-mile delivery, with delivery typically in 2-7 business days.

10. FedEx One Rate: A convenient pricing option that offers simple, flat-rate shipping for FedEx Express U.S. domestic shipments. This service is designed to make shipping more straightforward by providing a predetermined rate regardless of the package's weight (up to a specified limit) or destination within the United States. With FedEx One Rate, you can choose from various packaging options provided by FedEx, including envelopes, boxes, and tubes, at no additional cost.

    FedEx One Rate is available for overnight, two-day, and three-day shipping services. The flat rates are based on the packaging size you choose and the selected service level, making it easier to predict and manage shipping costs. This simplicity allows businesses to streamline their shipping process and provide transparent pricing to their customers.

    Here is more detail on the FedEx website regarding specific packaging sizes and rates. Unlike each of the other FedEx services listed above, FedEx One Rate pricing is typically the same for high volume shippers and the general public. This makes One Rate an extremely great value for anyone whose shipment profiles fit in the approved FedEx One Rate sizes.

Most Common FedEx International Shipping Options:

1. FedEx International First: Offers time-definite delivery to select international destinations as early as 10 AM in 1-3 business days.

2. FedEx International Priority: Provides delivery to more than 220 countries and territories within 1-3 business days.

3. FedEx International Economy: Offers cost-effective international shipping with delivery typically within 2-5 business days.

4. FedEx International Connect Plus (FICP): This solution is essentially the International Economy service plus 1 - 2 additional days in transit. In trade, FICP is usually slightly cheaper than International Economy. FICP is picked up and delivered door-to-door within the FedEx network.

5. FedEx International Ground: Provides ground shipping to Canada, with delivery typically in 2-7 business days. FedEx will charge extra for customs clearance. Customs clearance fees are based on the value of your shipment, which is typically what your customers paid for the shipment or similar. These fees can add up quickly. Here are UPS’ Canadian customs clearance fees for Ground shipments from the US to Canada, listed in Canadian Dollars. Notice that FedEx International Ground shipments, while cheaper in terms of base rates, will carry large brokerage fees versus $0 for the other FedEx international shipping options mentioned above.

   The faster shipping methods mentioned above do not carry these customs brokerage fees. This can potentially make Ground shipments to Canada more expensive than other expedited options. Ouch. For this reason, Rush Order most often opts to use FICP as our default shipping method from the US to Canada. Ground to Canada may look cheaper on the surface, but it sure isn’t the case if you’re shipping anything of value.

UPS Service Levels

Most Common UPS Domestic Shipping Options:

1. UPS Next Day Air Early AM: Delivers packages by 8:00 AM the next business day to most major US cities.

2. UPS Next Day Air: Offers next-business-day delivery by 10:30 AM to most addresses, with delivery by noon or end of the day for remote areas.

3. UPS Next Day Air Saver: Provides next-business-day delivery by 3:00 PM or 4:30 PM to most commercial destinations.

4. UPS 2nd Day Air A.M.: Offers delivery by 10:30 AM on the second business day to most major US cities.

5. UPS 2nd Day Air: Provides two-business-day delivery by the end of the day to most US addresses.

6. UPS 3 Day Select: Offers delivery within three business days by the end of the day.

7. UPS Ground: Cost-effective ground shipping with delivery typically in 1-5 business days.

8. UPS SurePost: An economical shipping service that combines the extensive UPS ground network with the final mile delivery capabilities of the U.S. Postal Service, offering cost-effective and reliable residential deliveries. Transit times are typically 3 - 8 days, based on Rush Order’s empirical experience.

Most Common UPS International Shipping Options:

1. UPS Worldwide Express Plus: Provides early morning delivery to over 60 countries within 1-3 business days.

2. UPS Worldwide Express: Offers time-definite delivery to over 120 countries and territories within 1-3 business days.

3. UPS Worldwide Saver: Provides cost-effective, time-definite

4. UPS Worldwide Expedited: Offers delivery to over 220 countries and territories within 2-5 business days. Despite the fancy name, this is the slowest delivery time of these first four services. However, delivery is still quite fast at 2 - 5 business days anywhere in the world. UPS Worldwide Expedited is comparable to FedEx International Economy and is typically priced similarly.

5. UPS Worldwide Economy: It’s easiest to think of UPS Worldwide Economy as “UPS SurePost International”. UPS picks up your shipment(s) and local postal networks are used around the world for last mile delivery to your customer(s). Pricing can be very attractive for this service (even cheaper than FedEx’s FICP service), but traceability is not the best and delivery times can be quite long. You get what you pay for here with UPS Worldwide Economy.

6. UPS Standard: This is basically UPS Ground shipping to Canada and Mexico. UPS Standard is cost effective to both countries but UPS will charge extra for customs clearance. Customs clearance fees are based on the value of your shipment, which is typically what your customers paid for the shipment or similar. These fees can add up quickly. Here are UPS’ Canadian customs clearance fees, listed in Canadian Dollars. Notice that UPS Standard shipments, while cheaper in terms of base rates, will carry large brokerage fees versus $0 for the other UPS international shipping options mentioned above. Similar fees apply for Mexico-bound shipments as well.

USPS Service Levels

Most Common US Postal Service Domestic Shipping Options:

1. USPS Priority Mail Express: Offers the fastest domestic shipping service from USPS, with overnight or 2-day delivery and a money-back guarantee.

2. USPS Priority Mail: Provides faster shipping for packages, with delivery typically in 1-3 business days and flat-rate pricing options.

3. USPS First-Class Mail: Offers cost-effective shipping for letters, postcards, and small packages, with delivery typically in 1-3 business days.

4. USPS Retail Ground: An economical shipping option for oversized or heavy packages that are not time-sensitive, with delivery typically in 2-8 business days.

5. USPS Media Mail: A cost-effective option for shipping books, CDs, DVDs, and other media items, with delivery typically in 2-8 business days.

6. USPS Parcel Select: A ground delivery service designed for large-volume shippers and businesses, leveraging USPS' extensive delivery network, with delivery typically in 2-9 business days.

Most Common US Postal Service International Shipping Options:

1. USPS Global Express Guaranteed: Offers the fastest international shipping service from USPS, with delivery in 1-3 business days to over 190 countries.

2. USPS Priority Mail Express International: Provides delivery to over 190 countries within 3-5 business days, with a money-back guarantee to select destinations.

3. USPS Priority Mail International: Offers delivery to over 190 countries within 6-10 business days, with flat-rate pricing options available.

4. USPS First-Class Package International Service: Offers an affordable shipping option for packages weighing up to 4 pounds, with delivery times varying based on the destination. Tracking door to door can be spotty and there is very little or no recourse in the way of a claim for refund if your shipment is lost or damaged in transit.

FedEx, UPS, USPS Comparison Table

Here again is our comparison table from part 1 of this series. This table dives a little deeper into the decision-making process we take our US clients through at Rush Order. for standard / ground shipments in the US. You’re welcome to download this table for your own use. We’re also happy to have one of our shipping experts walk you through this during a complimentary consultation or email exchange.

Parting Thoughts

Understanding the different service levels offered by FedEx, UPS, and USPS is essential for selecting the best shipping option for your business's needs. By comparing the various domestic and international shipping options each carrier offers, you can make an informed decision that balances delivery speed, cost, and reliability. Remember to evaluate your shipping requirements and customer expectations regularly to ensure you continue to choose the most appropriate service level as your business evolves.