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Not long ago,
all of the major players in the
industry announced upcoming rate
increases.
USPS:
The Postal Service announced
that they would not utilize the
option of one last Omnibus Rate
Case as allowed in the Postal
Accountability and Enhancement
Act of 2006. Future rate changes
will be more predictable and in
line with the Consumer CPI. The
Postal Service is still working
out the details, but my best
guess is a rate increase in May,
2008.
UPS:
United Parcel Service announced
their rate change, effective
December 31, 2007. UPS Ground
and UPS Standard to Canada will
have a 4.9 percent increase, and
Air and International express
services will see an initial net
increase of 4.9percent. The
actual increase for Air and
International is 6.9 percent,
but the Air and International
fuel surcharge will be offset by
a two percent reduction. Just
like adjustable rate mortgages,
this discount can disappear at
any time.
UPS is also increasing charges
for residential and delivery
area surcharges, additional
handling, address corrections
and declared value. You can
access the updated rates by
visiting ups.com/rates.
FedEx:
FedEx announced their rate
change, effective January 7,
2008. The rate increases are 4.9
percent for ground and a net 4.9
percent for Air and
International. The actual is 6.9
percent, with a two percent
reduction in the Air and
International fuel surcharge.
Charges for special handling,
residential, address corrections
and declared value are similar
in percentage with UPS. The new
rates can be accessed after
December 21, 2007 at fedex.com.
DHL:
Not to be left behind, DHL
announced their rates will also
go up. The new rates are
effective January 6, 2008. DHL
ground and DHL@Home will go up
4.9 percent. Their air and
international rates will also go
up 6.9% with an initial air and
international fuel surcharge
offset by a two percent
reduction in the fuel surcharge.
DHL saw how much pull the USPS
had with their flat rate
envelopes and has introduced the
express delivery industry’s
first prepaid, all-inclusive
flat rate box. Their offering,
called the ‘ShipReady’ box has
no weight restrictions. The box
is 11” x 8-1/2” x 5.5” and
provides 2nd day delivery within
the 48 contiguous states. |
