Will UPS and FedEx Rate Hikes Doom Free Shipping?


I started this.
Staff member
Will UPS and FedEx Rate Hikes Doom Free Shipping? - NASDAQ

The free shipping that consumers have come to expect when ordering online could be jeopardized by the latest rate hikes imposed by UPS (NYSE: UPS) and FedEx (NYSE: FDX) .

The average rate hike of 4.9% is the same amount the two carriers have imposed every year since 2010. But the increases in ancillary fees and surcharges are what could wreak havoc with free shipping, because they're targeted at the residential customer -- and some rates will rise as much as 30% or more.

Although UPS has couched the rate hikes as a way to improve customer service, John Haber, the CEO of supply chain consultancy Spend Management Experts, says the "rate increases are massive and are going to negatively impact shippers of all sizes."

Operational needs

Virescit Vulnere Virtus
Funny that John Haber said a price hike is a way to improve customer service. It’s all about the money for both companies. Customer service has nothing to do with it.


Staff member
Shipping isn’t free, never has been, and never will be. Ever

So whatever shipping costs and how it’s paid for, “free shipping” will always be a marketing and sales ploy.