UPS’ entry could raise interest in flat-rate parcel shipping

cheryl

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UPS’ entry could raise interest in flat-rate parcel shipping - Freight Waves

In a complex parcel shipping world, simple is good. Hence the concept of a shipper cramming 50 or 70 pounds of stuff into a box and paying one rate no matter its contents, its origin or its destination.

So it was in 2004 when the U.S. Postal Service (USPS), 13 years after launching flat-rate pricing for its envelopes, expanded the program to cover boxes shipped via its Priority Mail one- to three-day delivery service. In 2013, FedEx Corp. (NYSE:FDX) followed suit with its “OneRate” flat-rate pricing program.

One company had always been conspicuous by its absence — until late September. Under the radar, UPS Inc. (NYSE:UPS) brought its own program, called “Simple Rate,” into the game. Typically, FedEx and UPS do everything almost in unison. In this case, however, six years elapsed between the respective rollouts.
 
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