While FedEx SmartPost hasn't made any public announcements as of this publication, select customers have received written notifications of a price change effective April 27, 2015. Early indications are that FedEx intends to increase SmartPost rates by 8.3 percent.
In spite of plummeting oil prices, UPS just changed the tables used to calculate fuel surcharges, resulting in yet another rate increase for shippers. New, higher fuel surcharges for UPS Air, International and Ground products will change effective Feb. 2. You didn't miss the UPS memo. The corporate email didn't go into your junk folder. Your UPS sales rep didn't forget to call. There was no announcement. UPS simply updated the tables and posted them to its website overnight.
On the heels of its General Rate Increase (effective January 5, 2015) and changes to the way FedEx will price all Ground packages based on dimensional weight, the changes reflect yet another major rate increase. FedEx Express and International services will increase as much as
Effective Dec. 29, 2014, the published rates for UPS services will increase. UPS Ground, Air and International rates will increase an average net of 4.9 percent. UPS air freight rates within and between the U.S., Canada and Puerto Rico will increase an average net 4.9 percent. UPS freight tariffs for shipments rated on the current UPS Freight 560 (U.S. 48), 525 (to and from Canada) and 570/571 (to and from Mexico) will increase an average net 4.9 percent. However, average increases can be misleading.
This is the first time FedEx has announced its Ground increase prior to UPS. In the past, UPS would set the Ground increase and FedEx would quickly match it. The industry now turns its attention to UPS in anticipation of its 2015 general rate increase announcement in the coming weeks. Does UPS match the FedEx rate increases, or will it change pricing to compete with new, sharply discounted USPS Priority Mail pricing?