January 8, 2013
The carriers have a holiday gift for all their loyal shipping customers – rate increases.
It’s the same dance every year
Step 1: Announce rate increases in January, with very small discount in fuel surcharge.
Step 2: Sometime between May and June, eliminate the fuel surcharge discount when summer comes. Effectively claw back the fuel surcharge “discount” earlier in the year and hope nobody notices that the fuel surcharge will actually increase for the year (hint…we notice).
Bonus Step 3: Hope everybody forgets by the holiday season so next years rate hikes can be announced (usually in November) and the dance can start over.
Here are the rate increases this year:
This year UPS and Fedex are increasing ground parcel shipping rates by on average 4.9%.
Internet Retailer, summed it up nicely:
“…that the lighter the package, the higher the rate increase. And because most online retailers ship packages of 30 pounds or less, their average rate increase will run higher than 4.9%… “Overall, most e-commerce retailers will have a rate increase of about 7% or 8%,” he says. For shipments forwarded by UPS and FedEx to the United States Postal Service for local residential deliveries under the USPS’s Parcel Select program, the USPS is increasing shipping rates by about 9%, effective Jan. 27, the USPS says.
In addition, UPS and FedEx are increasing for 2013 surcharges and accessorial fees, such as surcharges for delivering to residential addresses and fees for handling packages with incorrect address labels. …UPS and FedEx will impose a surcharge of $2.80 for delivering to a residential address, up about 10% from $2.55 in 2012. The shipping carriers also tack on additional surcharges for residential addresses in remote areas. Other surcharges in 2013 will include $12 for correcting an address, up from $11 in 2012
UPS will also increase its rates for air and international shipments by 6.5%, which will drop to 4.5% with a two percentage point reduction in the fuel surcharge.
At FedEx, air shipments via FedEx Express will rise by an average of 3.5% after decreases in fuel surcharges, the company says.”