Tuesday, July 8, 2008

United Parcel Increase: What Does It Mean For You!

December 31st 2007 isn’t the end, it’s the beginning of the biggest rate increase in shipping history. After all, the $6.1 billion payment UPS needs to make to Central States has to come from somewhere. And that somewhere is most likely out of your pocket in the way of higher shipper costs.

The announced rate increase of 4.9% for ground and 6.9% for Air doesn’t paint the whole picture. These rates are averages, and a closer look reveals each shipper’s budget will be impacted in a different way.

For example, higher zone shippers are realizing increases in the 9-12% range. Surcharges are increasing up to 20% in some cases. Irregular and oversize packages up to 12.5%. Address correction? How about a 20% increase!

While we see a net reduction of 2% in the fuel surcharge, those costs are calculated monthly, and there’s no guarantee that number won’t change with the tide. A half percentage point change results in approximately $200 million to UPS.

Fact is, there’s been a 31% increase over the last 37 months. So what’s the best way to determine what this all means to you? Well, you can sift through the 184 pages of terms and conditions, but unless you’re an expert, you still won’t figure it out. Or simply call us because we know what it’s going to cost you, and what you can do about it.

Visit us at http://www.totalogistix.com/.

No comments: