First FedEx, now UPS: rate increases for 2009
October 21, 2008 by SwizStick
Filed under Integrators
With retailers everywhere trying to bring down inventory, consumer spending weak, and import cargo volumes falling everywhere, it seems like a strange time to be announcing rate increases. But hey, what do I know:
When announcing its fiscal first quarter earnings in September, FedEx said its Express rates would increase by an average of 6.9 percent for U.S. and U.S. export services, effective January 5, 2009. FedEx added that the rate increase will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.
The 4.9 percent net average shipping rate for FedEx Express matches last year’s rate increase for the company. According to its Web site, FedEx Ground and FedEx Home Delivery rates for 2009 have increased by an average of 4.9 percent.
UPS:
UPS Ground packages will increase by 5.9 percent on average, with an average net increase of 4.9 percent on all air, express, and U.S. origin international shipments. And rates at its less-than-truckload subsidiary, UPS Freight, will also rise 5.9 percent for 2009.
Shipwire Order Fulfillment on Tue, 4th Nov 2008 5:11 pm
Each year the major carriers increase rates. In most cases they may scale back one or more surcharges; however, watch for the surcharge to increase later. Also most shipping discount % plans don’t apply to surcharges.
If you are looking for real shipping cost savings you should store inventory closer to end buyers. If you sell internationally, move a small amount of inventory into the international market.
http://www.shipwire.com makes this easy to do. We offer warehouses in the US, Canada and the UK. We even offer a free trial of any warehouse that gives you great shipping tools and custom shipping label printing features you can use free forever.
http://www.shipwire.com/trial