International shipping rates can be a major cost factor for global trade sales, even in small transactions where only one parcel was sold.
This analysis compares international shipping quotes from 5 major U.S. carriers including couriers, freight delivery companies and the U.S. postal service. Each carrier delivers parcels around the world, and offers an online shipping rate calculator on its website.
International Package Delivery Case Study
Rates to deliver one 50 pound (22.7 kilogram) package from New York City (zip code 10007) to Toronto (postal code M5E 1S7) are compared.
Dimensions for the sample parcel are assumed to be 12 inches (30.48 centimetres) in length, width and height. The value of the shipment is $500. Another assumption is that the exporter drops the parcel off at the parcel shipping company’s office, thus saving on additional pickup costs.
All dollar amounts in this article shown are in U.S. currency.
Lowest International Parcel Shipping Rates
FedEx offers the lowest international shipping quote for delivering the 50-pound parcel from New York to Toronto. FedEx’s parcel delivery is 2 business days, while UPS Standard guarantees delivery by the end of the second day. The United States Postal Service (USPS) lists 6 to 10 days for its package delivery service.
- FedEx International Ground … $57.18
- UPS Standard … $64.09
- USPS Priority Mail International … $105.75.
USPS does offer a lower rate of $100.46 if exporters pay parcel shipping rates online. Even then, the postal service’s lower rate is 75.7% higher than for sending the same package via FedEx. Besides, many of the other carriers also offer 10% discounts for ordering delivery services online.
Least Expensive Freight Delivery Costs
Parcel delivery couriers and other carriers specialize in freight delivery, which typically involve shipments of 10 parcels or more. The following list assumes the same 50-pound parcel used in the previous comparison. Readers should bear in mind that freight companies deal in much higher volumes that significantly lower delivery costs per delivered item.
- USPS Express Mail International … $203
- FedEx International Economy … $223.20
- UPS Worldwide Expedited … $227.70
- DHL Worldwide Priority Express … $245.82
- TNT Express Priority … $260.95.
USPS Express Mail International advertises 5 day delivery. FedEx International Economy promises delivery within 3 business days, while UPS Worldwide Expedited guarantees delivery by the end of the second following day.
Cheapest Overnight International Shipping Quotes
Carriers are ranked below for parcel delivery costs with a 1-day delivery standard. Excluded was DHL Express, because its online shipping rate calculator did not mention 1-day service charges.
- USPS Global Express Guaranteed … $236.75
- FedEx International Priority … $270.92
- TNT 12:00 Express … $267.70
- UPS Worldwide Saver … $275.42
While the USPS had the lowest price rate for the sample parcel comparison, the U.S. post office gives a range of delivery dates from 1 to 3 days. Fedex International Priority and TNT 12:00 Express sell overnight services.
UPS prices 3 different 1-day delivery services based on the following service guarantees:
- $328.44 for UPS Worldwide Express Plus (by 8 am next day)
- $285.64 for UPS Worldwide Express (by 10:30 am next day)
- $275.42 for UPS Worldwide Saver (by end of next day).
Choosing the Cheapest International Shipping Rates
The above comparison was a simple example of how to compare parcel delivery costs for sending one item from New York to Toronto.
Consumers need to do a more detailed analysis, comparing all factors pertinent to their specific shipments. For example, most carriers charge higher rates for a parcel with large volume dimensions even though the package weighs the same 50 pounds.
Other charges can depend on the parcel’s contents; fragile goods with special packing requirements cost more.
For time-sensitive deliverables, exporters also need to consider shipping times before they can choose the most economical parcel delivery rates.
The goods news is that international shipping is an intensely competitive business. Private companies like FedEx and UPS compete to offer consumers the fastest service at the lowest possible rates. Online shipping rate calculators make these comparisons fast and easy.
There is even more positive news. Most competitors are offering discounts to shippers who order international delivery services online. This is another incentive to use the Internet to shop and compare for the most economical shipping prices.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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