Parcel carrier rate increases have been announced. The major small parcel carriers appear to be bracing for reduced volumes and potentially increased costs of doing business. At this point it is unclear how these prices will be impacted by the recent crude oil price decreases. [Update on 11/25/08: There are reports of UPS and FedEx reducing Fuel Surcharges for the holidays.]
For the first time, the U.S. Postal Service will be adjusting pricing for its shipping service at a different time than its mailing service. Effective January 18th the USPS will raise rates on its Parcel Select by 5.9%, Express Mail by 5.7%, Priority Mail by 3.9% and International shipping by 8.5%.
UPS has also recently published 2009 rates with many increases. UPS Ground rates will increase on average 5.9%, Air and International services will be increased 4.9% that consists of a 6.9% rate increase and a 2% fuel surcharge reduction. If history is any guide, there may be further changes to fuel surcharges after the rate increases take effect.
These two rates come on the heels of FedEx rate increases in September. FedEx Express rates will increase by 6.9% in January. To date, we have not seen the new pricing table for FedEx ground 2009 rates.
This is on top of DHL exiting the U.S. shipping market.
Shipwire order fulfillment provides an alternative to carrier pricing increases. Let us help you distribute inventory around the world and fulfill purchases to buyers from local warehouses. True shipping cost savings.
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Check the trackback links for some good commentary on the carriers financials and the impact of the slowdown.
Posted by:
Nate Gilmore
Nate oversees our channel development and developer network, as well as our marketing and public relations. Previously, Nate was at Concentric, acquired by XO Communications, where he ran product management, sales and marketing. Over his six year career with Concentric, he developed dozens of new business channels, by initiating new products for small- and mid- size businesses, developing partner programs for those products, and working with web developers and systems integrators to provide ongoing support of those products. Nate has also held various legal positions in intellectual property and business law. He holds a B.A. in History, and a J.D., from Santa Clara University.
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