Welcome to The Parcel News Buzz, your ultimate source for all the latest news and market updates in the dynamic and ever-evolving parcel shipping industry. Our weekly blog is your go-to destination for insights, trends, and innovations that drive the industry forward. As your trusted partner, we are committed to keeping you informed and empowered with clear and concise information that helps you stay ahead of the curve. Learn more about what’s happening in the world of parcel shipping and uncover the buzz that drives the industry’s future.
November 20: FedEx and UPS Engage in Unprecedented Discounting, Offering Extraordinary Rate Reductions
Parcel carriers, particularly FedEx and UPS, are engaged in unprecedented discounting, offering extraordinary rate reductions, paying each other’s early termination penalties, and providing signing bonuses to new and existing customers. Shippers need to be careful though when executing new agreements because carriers are also adding in detailed language regarding volume commitments, service level requirements and diversification limitations.
November 13: 2024 General Rate Increase Comparison
- 3 Zone Accessorial Rates (2, 3 / 4, 5+)
- Higher on Zones 5 / 6, lower on Zones 7+
- International AH has one rate for all types ($31.00)
- Residential Surcharge is now $0.05 higher than FedEx for both Ground and Air
- Missing PDL has increased from $3.00 to $3.85 (28.3% increase)
- Shipping Charge Correction Audit Fee increased from $1.00 to 1.25 (25% increase)
- 4 Zoned Accessorial Rate (2, 3 / 4, 5 / 6, 7+)
- Matching Zones are higher on Zones 7+
- International AH has different rate by type (Packaging $21.50, weight $36.00 and dimension $25.50)
- Does not charge Missing PDL
- Does not charge Shipping Charge Correction Audit Fee
October 30: UPS and FedEx Raise Transportation Charges by 6.2-6.3%
- UPS and FedEx have raised their transportation charges by an announced 5.9% over 2023. However, through our analysis, we are seeing more of a 6.3% and 6.2% respectively. Both carriers’ Ground minimum charges has been raised 5.9% from $10.10 to $10.70. The minimum charge in 2014 was $6.24. In 10 years the minimum charge has increased 71%.
- UPS and FedEx have raised additional handling surcharges and fees in double digits over the past 10 years.
- In 2024, both carriers raised those rates approximately 20%.
- Effective Jan 15, 2024 International Additional Handling and International Oversize surcharges are applicable “Per Packages” instead of “Per Shipment”, which matches UPS.
October 23: UPS, FedEx, and USPS Release Shipping Deadlines for Holiday Deliveries
UPS, FedEx and the U.S. Postal Service announced shipping deadlines for all customers seeking to ensure products are delivered ahead of Christmas.
- FedEx: To ensure delivery on or before Dec.24, it is advised that Ground and Freight packages be shipped by Dec 15 for 5-shipping with Dec.22 is the latest date to ship using FedEx’s SameDay and Home Delivery services.
- UPS: To ensure delivery by Dec.23 (Parcel carriers will not be operating on Thanksgiving Day, Christmas Eve and Christmas), send packages by Dec.19 using Ground Shipping or Dec.22 at the latest using UPS Next Day service with Saturday enabled.
- U.S. Postal Service: USPS is advising shippers to consider Ground Advantage option that ships packages within two to five business days, based on distance. To ensure delivery for domestic packages ship by Dec. 16 using Ground Advantage or by Dec.20 using Priority Mail Express.
More details about UPS and FedEx 2024 rates include:
- Delivery area surcharges will once again be impactful with additional zip codes added.
- UPS – Saturday surcharges are getting more expensive.
- UPS had added an additional day in transit for some zips based on network changes.
October 16: Peak Season Surcharges are going into effect
Some of the Parcel Carriers’ Peak Season surcharges are in effect and some are taking effect soon. FedEx: Oct. 30 – Jan 14, 2024; Nov.27- Dec 10, 2023 (additional increase $2.60/pkg).
UPS: Oct 1 – Jan 13. USPS: Oct 2 – Jan 22. Amazon: Oct 15 – Jan 14.
October 9: Project44 Report Shows Rise to 85.1% Service Commitments
A recent Project44 report on last mile delivery performance found that 85.1% of last mile deliveries hit their service commitments in August. This is up from 78.3% in 1Q23 and 83.8% in Aug. ’22. The report also found that shippers are using 6.1 carriers on average to manage last mile deliveries, which is up from 4.2 carriers in October 2020. (FreightWaves)
October 2: UPS Invests in Healthcare Distribution with Acquisition of MNX Global Logistics
UPS is bolstering its healthcare products distribution operations by acquiring MNX Global Logistics, adding to the logistics sector’s growing investment in medical supply chains (WSJ).
September 26: No Demand Surcharges for USPS, Veho, and Axlehire, Differing from FedEx and UPS
Contrary to the demand surcharges announced by FedEx, UPS, and OnTrac, there will be no demand surcharges from USPS, Veho, and Axlehire.
September 18: UPS and FedEx Announce 5.9% Rate Hike, Reflecting Industry Challenges and Rising Costs
In recent developments within the parcel shipping industry, both UPS and FedEx (FDX) have announced General Rate Increases (GRI) of 5.9%. This rate hike reflects the ongoing challenges faced by these carriers, including rising fuel costs, labor constraints, and strong demand for e-commerce deliveries. As parcel shipping continues to play a crucial role in the global supply chain, these rate increases are likely to impact the pricing strategies of e-commerce businesses and other industries heavily reliant on parcel services, especially those that ship to remote areas or provide consumers with large, bulky items.