By Rob Martinez, DLP, CMDSS President & CEO, Shipware, LLC
Today, UPS announced its 2014 General Rate Increase (GRI). Ground, Air and International parcel products will increase an average of 4.9% effective December 30, 2013.
However, as it has historically done, UPS Ground increases are higher at the lighter weights and less impacting at heavier weights (see chart below):
The 2014 Ground Minimum Charge is $6.24, a 6.8% increase from 2013.
For years, the UPS “Daily Rates” were better than FedEx’s list rates. However, with the 2014 rate increase, the UPS Daily Rates are now a lot closer with FedEx, especially for 1-2 day service options. On the whole, UPS Daily Rates are still less expensive for 3 Day Air than FedEx Express Saver, but it depends on weight and zone configurations.
Again in 2014, UPS “Standard Rates” will match FedEx’s published rates.
UPS also announced increases to package surcharges and accessorial charges. To preview rates and review surcharge increases, visit: http://rates.ups.com/surcharges.html.
FedEx’s average 3.9% rate increase for Express products takes effect January 6, 2014, one week after the UPS increase. FedEx has not yet announced its 2014 Ground and FedEx Home Delivery increases, but it is expected to match UPS within the next few days.
It is important to note that FedEx maintains a more favorable fuel surcharge threshold than UPS for both Express and Ground packages (at current fuel prices).
A more comprehensive analysis from Shipware, LLC will be published shortly.
Rob Martinez, DLP is President & CEO of Shipware LLC, an innovative parcel audit and consulting firm that helps volume parcel shippers reduce shipping costs 10%-30%. Rob offers 25 years’ experience negotiating parcel contracts ‐ on both sides of the negotiating table ‐ for some of the most recognizable brands in the world, and is a sought after speaker and industry thought leader. He welcomes questions and comments, and can be reached at 858-879-2020 Ext 114 or firstname.lastname@example.org.