FedEx, sensing an opportunity against its main rival, has posted a general rate increase for next year three weeks earlier than usual and lower than the current year’s figure, coming in at 5.9%, as UPS is dealing with a new union contract cost that the Teamsters estimates at $30 billion over five years. Analysts believe it will lead to a rethinking of UPS’s approach to its GRI strategy.
UPS has ended a freeze on earned discount tiers based on large shipping volume drops caused by COVID-19 lockdowns, with some shippers seeing cost increases in the 10% to 30% range as they suddenly dropped two or three tiers, consultants and shippers report. The freeze ended as the lockdown effects are long over.
FedEx reported revenue was up 4% and net income up 141% for the fourth quarter ended May 31.
MCM contributor Curt Barry offers practical information for shippers in light of dimensional weight pricing moves by major carriers.
On the heels of a similar announcement last month by rival FedEx, United Parcel Service announced Tuesday it will expand dimensional weight pricing for all U.S. ground shipments, effective Dec. 29, 2014.
Shipping charges, concerns about security and a lengthy purchasing are the three factors most likely to make consumers abandon online purchases, according to a new study by ecommerce software and services specialist Postcode Anywhere. But rest easy, there is a simple fix.