They’re Here! UPS finally announced its long awaited rate increases this morning. To be honest, not too many surprising findings and lots of “me too” pricing between them and FedEx.
So why was UPS a tad late with this announcement? One of our trusty analysts had this take: In the past both UPS and FedEx would increase their rates once a year in advance of the New Year. This year however, UPS has implemented increases on accessorials, as well as Fuel Surcharges for International Air shipments during the current year. With this being the case, is it possible UPS wanted to spread out this increase announcement as far as they could so that parcel shippers would not feel like every time they turn around, here is another increase from UPS? Great insight!!!
It comes as NO surprise at all that UPS’ overall General Rate Increase percentage for 2019 is the same as FedEx’, 4.9%.
Additional insight from our amazing analysts on the UPS announcement:
If you ship a 1 or 3 lb Next Day Air Saver package to zone 133 you will experience a 9.9% increase or a 4 or 5lb shipment to the same zone and you will experience a 8.8 or 8.4% increase respectively, far above the quoted 4.9% average increase. As a matter of fact every weight break in our analysis for Next Day Air and 3 Day Select were all above the quoted 4.9% average increase. If you would like to truly experience the average or below increase you are hopefully shipping smaller Ground packages.
The carrier also continued the trend of hitting hard on the increases of specific Fee & Surcharge Rates. Additional Handling charges for shipments with weights over 70 pounds will see an increase of 21.1%, Large Package Surcharges on residential shipments will increase by 27.8% but the best of all is the increase on the Over Maximum Limit charge of 30.8%. This fee will now cost you $850.00 per shipment and to think this fee was only $150.00 in January 2017!!!
We have all the charts you need to understand the rate increases for both carriers and ready for you now, as we do every year. Email ONodjoumi@icclogistics.com for your copies today.
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