International shipping options

THE REAL COST OF FUEL SURCHARGES

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The major carriers (namely, FedEx and United Parcel Service) have an index for what they add as charges based on averages of what a gallon of kerosene-type jet fuel costs at the pump. For instance, at press time, a gallon of jet fuel was $1.86 to $1.90, so FedEx's surcharge on Express shipments was 7.5%.

So FedEx's announcement that its rate increases for 2010 include a 2% reduction in the fuel surcharge is good news, right? Not really, when you consider this is the fifth consecutive year FedEx has imbedded 2% of the fuel surcharge into the base rate. The increases compound the impact of these 2% charges so that it's now nearly 10.5% come January; the prevailing fuel surcharge is then applied against the inflated base rate.

Why are the carriers imbedding fuel surcharges in the base rates? They are hedging against a drop in fuel, which happened this past April and May. Shippers were no doubt thrilled when fuel prices dropped and the fuel surcharges in essence disappeared. But there was still an 8% fuel surcharge that had been buried in the base rate during the past four years that shippers were charged for international and domestic air packages — even though it did not appear on invoices as an accessorial charge. — GH

INTERNATIONAL SHIPPING RESOURCES

Most of the big parcel carriers provide international delivery options. Here are a few examples:

Canada Postwww.canadapost.ca

DHLwww.dhl-usa.com

FedExwww.fedex.com

Purolator USA (Canada) • www.purolatorusa.com

TNTwww.tnt.com

United Parcel Servicewww.ups.com

U.S. Postal Servicewww.usps.com

Some software and other shipping service providers:

Bongo Internationalwww.BongoUS.com

(Mail forwarding and parcel forwarding service)

BorderJumpwww.borderjump.us

(International shipping and logistics specializing in Latin America and the Caribbean)

Canada Pluswww.Canadaplus.com

(International parcel logistics for shipments to Canada)

Endiciawww.endicia.com

(Internet postage service that allows users to print complete, prepaid USPS labels)

Logicorwww.logicor.com

(Compliant shipment execution applications for parcels, LTL and TL)

MyUS.comwww.MyUS.com

(International mail and package forwarding service)

Precision Softwarewww.precisionsoftware.com

(Global transportation, parcel and desktop shipping software)

Stamps.comwww.stamps.com

(Shipping software and postage systems for U.S. Postal Service customers)


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