Like the changing of the seasons, we have become used to the annual ritual of the Postal Regulatory Commission announcing in November that it has approved a United States Postal Service request to raise rates in January. But the USPS is not the only delivery service that announced increases for this year. United Parcel Service and FedEx have both raised their rates as well, effective December 31, 2012 for UPS and January 7, 2013 for FedEx.
While USPS price increases are bound by statute to at or below the Consumer Price Index (CPI) cap of 2.570 percent, UPS and FedEx decisions are based on the market and competitive forces that affect any commercial entity. UPS claims that the new prices allow them “to further enhance our portfolio of solutions and improve service to you, so you can deliver even better service and greater value to your customers.” FedEx cites the cost of doing business, stating that “fuel prices, the cost of updating or replacing equipment and vehicles, and more — makes it necessary for us to periodically evaluate our shipping rates, surcharges and fees.”
Below is a summary of the changes.
- UPS Air and International Services will increase an average net 4.5% through a combination of a 6.5% increase in rates and a two percentage point reduction in the UPS Air and International fuel surcharge table.
- UPS Ground Services will increase an average net 4.9% through a combination of a 5.9% increase in rates and a one percentage point reduction in the UPS Ground fuel surcharge table.
- UPS Next Day Air® Freight, UPS 2nd Day Air® Freight and UPS 3 Day Freight® rates for shipments within and between the U.S., Canada, and Puerto Rico will increase 4.9%. In addition, select accessorial fees will increase.
- UPS Express® Freight rates for shipments originating in the U.S will increase 4.9%.
- For FedEx Express U.S. freight services, the Additional Handling Surcharge increased from $100 to $110 per piece, skid or pallet.
- For shipments receiving FedEx Express Multiweight® pricing, the maximum charge increased from $77 per shipment to $84 per shipment.
- For shipments receiving FedEx Ground Multiweight® pricing, the maximum charge increased from $35 to $38.15.