An outcome of the pandemic-accelerated e-commerce boom, the demand for parcel services continues to exceed the supply. Like previous years, network capacity limits will be stretched for all carriers this holiday season and into 2022. UPS recently put a number on it: the daily demand exceeds the parcel market’s network capacity by 5 million packages…
Rob Martinez
Last Friday, the U.S. Postal Service announced temporary price increases effective Oct. 18, 2020 through Dec. 27, 2020. Increases are quite significant, as follows: Parcel Select (DDU entry): Up to 7.5 percent Parcel Select (DSCF entry): Up to 9.1 percent Parcel Select (DNDC entry): Up to 6.7 percent Parcel Return Service: Up to 7.9 percent…
UPS announced two Peak Surcharge increases effective May 31, 2020: an increase on UPS Ground Residential and UPS SurePost packages, as well as an add-on charge for larger shipments that incur the Large Package Surcharge (LPS). Ground Residential as well as SurePost will be assessed an additional surcharge of $.30/package when the current average weekly…
The United States Postal Service is changing the way it charges for boxes shipped via Priority Mail, Priority Mail Express and other parcel shipping services. Currently, the Postal Service applies a dimensional divisor (DIM) of 194 for boxes that exceed one cubic foot in volume, and only for zones five and above. Effective June 23,…
I had the following email forwarded to me yesterday from a UPS Freight customer. And I have to say, I can’t believe UPS is doing this! The news starts at paragraph three … UPS Freight will not be picking up freight as the freight contract with the Teamsters gets close to the vote. Essentially, UPS will not be…
As most of the industry is aware, the most recent five-year UPS/Teamsters National Labor Agreement expired in July. However, the parties extended and have been operating under the same agreement as they negotiated a settlement. In July, UPS and the Teamsters announced they had reached a tentative “handshake” deal for both Freight (LTL) as well…
On Monday, FedEx modified its Express and Ground fuel surcharge rates, and created new indexes for International Export and Imports. These changes mean significant rate increases for nearly all FedEx shippers. Shippers shouldn't confuse this rate change with the weekly, normal fluctuation in fuel surcharge percentages based on market prices (as published by the Department…
Even though the potential strike at UPS hasn’t yet been averted (the current labor agreement is set to expire July 31, and the two parties haven't ratified a tentative agreement), the company has decided that now is a good time to impose intra-year rate hikes. UPS already changed its fuel surcharge tables for air export…
Both FedEx and UPS have announced new, temporary holiday surcharges that will impact shipping costs for e-commerce businesses this holiday season. UPS In June, UPS announced a new peak season charge applicable during selected weeks in November and December 2017 for U.S. Residential, Large Packages and Packages Over Maximum Limits. The increase means that every…
In a somewhat surprising move to industry analysts, FedEx has announced shipping rate and surcharge changes for 2017 that do not match those announced Sept. 1 by rival UPS. FedEx Express, FedEx Ground and FedEx Freight, subsidiaries of FedEx Corp., will increase shipping rates effective Jan. 2, 2017 as follows: FedEx Express will increase shipping…
In its ongoing efforts to merge, FedEx and TNT Express jointly announced last Friday the unconditional approval of the Ministry of Commerce People’s Republic of China. After winning approvals in the United States (November 2015), EU (January 2016) and Brazil (February 2016), China was the last major regulatory hurdle for FedEx to gain in its…
Effective Dec. 28, 2015, UPS Ground rates and accessorial charges will increase by an average net 4.9 percent. UPS Air and International services and accessorials, including UPS Air Freight rates within and between the U.S., Canada and Puerto Rico, will increase an average net 5.2 percent. UPS Freight rates will increase an average net of…
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On the heels of a fuel surcharge adjustment just this past February, FedEx is once again adjusting its fuel surcharge index nine months later. Effective Nov. 2, 2015, fuel surcharges for FedEx Express and FedEx Ground will change resulting in Express/International increases of 1.5 percent to 1.75 percent, and Ground increases of .5 percent to…
FedEx Express, FedEx Ground and FedEx Freight, subsidiaries of FedEx Corp., will increase shipping rates effective Jan. 4, 2016 as follows: FedEx Express will increase shipping rates by an average of 4.9 percent for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average…
In my observation, the vast majority of volume parcel shippers have tried to mitigate the impact of the 2015 dimensional pricing changes through a number of strategies. They include the following: carrier contract negotiations; diverting freight to regional carriers and the U.S. Postal Service that might offer higher DIM divisors and thresholds than the national…
