Of the news wire

[Dfigtree]

In case you did not already know and for what it's worth ...

UPS to raise air, ground rates
9:53 AM EDT October 18, 2008
United Parcel Service Inc. says it will raise its ground shipping rates by 5.9 percent and its air rates by 4.9 percent next year.
UPS, based in Atlanta, will lower its aviation fuel surcharge by two percent in 2009, thereby mitigating its official air rate increase of 6.9 percent, The Wall Street Journal reported Saturday.
The move mirrors an announcement last month from Fedex Corp. that it, too, was raising its air rates by 6.9 percent less a 2 percent fuel surcharge cut.
UPS raised its rates by 4.9 percent for this year.
The delivery company is also being hit with falling demand as consumers cut back on spending for shipped items.

 

[over9five]

Re: Off the news wire

5.9% increase for ground seems kind of steep. Does anyone remember what it has been in the past? I'm thinking 2 - 3%?

 

[rod]

I wonder if they still send out a notice to the customers that starts off with " Due to the high cost of labor" blah blah blah.

 

[UPSNewbie]

That announcement is also on UPSers.com under corporate PCMs.


Side note: I bought a new video card for my computer last week. I had the option of FedEx Express Saver, Overnight, 2Day, UPS 3 Day Guaranteed, NDA, 2DA.

FedEx Express Saver: $13.46
FedEx 2Day: $20.21
FedEx Overnight: $24.32
UPS 3 Day Guaranteed (Ground): $8.25
UPS 2DA: $12.71
UPS NDA: $21.13

I was very surprised that I could get UPS 2DA cheaper than FedEx Express. Does TN not have many FedEx facilities, or is UPS really The One?

 

[BigBrownSanta]

Didn't UPS come out with their rate increases first last year and fedex pretty much matched the increase in their rates? This year UPS matches fedex's rate increase. Hmmmm....

I believe last year's increase was 4.9%.

 

[brownmonster]

5.9 percent, just like this years wage increase

 

[Jones]

I wonder if they still send out a notice to the customers that starts off with " Due to the high cost of labor" blah blah blah.

Nah. These days they just send them a bill.

 

[alister]

That announcement is also on UPSers.com under corporate PCMs.


Side note: I bought a new video card for my computer last week. I had the option of FedEx Express Saver, Overnight, 2Day, UPS 3 Day Guaranteed, NDA, 2DA.

FedEx Express Saver: $13.46
FedEx 2Day: $20.21
FedEx Overnight: $24.32
UPS 3 Day Guaranteed (Ground): $8.25
UPS 2DA: $12.71
UPS NDA: $21.13

I was very surprised that I could get UPS 2DA cheaper than FedEx Express. Does TN not have many FedEx facilities, or is UPS really The One?

there could be a number of reason why our rate was so much cheaper this time. most likely the business is located near one of UPS's major air gateways. it could also be within normal ground 2 day transit. All in all, i do not think this is a typical price comparison. Most of the time i have seen it, UPS is cheaper on the 2nd air by about 2 bucks but higher on the next day air by about 4.

 

[drewed]

I was very surprised that I could get UPS 2DA cheaper than FedEx Express. Does TN not have many FedEx facilities, or is UPS really The One?

Memphis is Fedex base of air ops

 

[tieguy]

Didn't UPS come out with their rate increases first last year and fedex pretty much matched the increase in their rates? This year UPS matches fedex's rate increase. Hmmmm....

I believe last year's increase was 4.9%.

if the post is correct they are raising their rates 6.9 while we are raising 5.9

 

[UpstateNYUPSer(Ret)]

I wonder if they still send out a notice to the customers that starts off with " Due to the high cost of labor" blah blah blah.

I can recall when they would have us deliver the news regarding rate increases to our pickup customers.

 

[barnyard]

there could be a number of reason why our rate was so much cheaper this time. most likely the business is located near one of UPS's major air gateways. it could also be within normal ground 2 day transit. All in all, i do not think this is a typical price comparison. Most of the time i have seen it, UPS is cheaper on the 2nd air by about 2 bucks but higher on the next day air by about 4.

It also depends on their contract. The company my wife works for has great UPS rates. It is cheaper for me to send packages with my wife to work than it is to take to the post office. I shipped a package for $6 to a guy that shipped it to me via USPS for $8.

UPS pricing varies greatly from customer to customer. It is dependent on volume, claims and other factors.

The most expensive customers for us to service, also get the highest rates (internet shippers.)

TB

 

[BigBrownSanta]

if the post is correct they are raising their rates 6.9 while we are raising 5.9

Oops. My reading comprehension is getting worse.

My bad.

 

[UPSNewbie]

It also depends on their contract. The company my wife works for has great UPS rates. It is cheaper for me to send packages with my wife to work than it is to take to the post office. I shipped a package for $6 to a guy that shipped it to me via USPS for $8.

UPS pricing varies greatly from customer to customer. It is dependent on volume, claims and other factors.

The most expensive customers for us to service, also get the highest rates (internet shippers.)

TB

Ah. I did not take into consideration contracts. That could be a big factor.

 

[freeloader]

I wonder if they still send out a notice to the customers that starts off with " Due to the high cost of labor" blah blah blah.

They might need to modify that to "Due to the high turnover of cheap labor".....