Have you heard the news? While the United States is dominated by FedEx, UPS and the USPS…..Regional Parcel Carriers are becoming a popular option for many shippers. This is compounded by the upcoming DIM increase by FedEx starting on Jan. 2nd?
Again, FedEx is lowering the dimensional weight (DIM) divisor from 166 to 139, effectively bumping up the weight and price of parcels – your parcels. As sure as the Sun will rise in the east and set in the west tomorrow, parcel carriers will roll out their new shipping rates for the coming year. UPS and FedEx are raising their ground shipping rates 4.9% after the holidays, and some additional fees will kick in sooner.
UPS drew first blood in early September, announcing rate hikes that will take effect in the coming weeks and months, including these notable changes:
• UPS U.S. Ground service, U.S. Air and International services will increase by an average net 4.9%, effective December 26, 2016
• UPS also noted that the additional handling surcharge will apply to any package with the longest side exceeding 48 inches, instead of 60 inches for all Air and International packages, with the additional handling charge increasing by $0.35.
Now, FedEx followed suite and announced its respective rate increases, which will take effect on January 2, 2017, including:
• FedEx Express rates increasing by an average of 3.9% for U.S. domestic, U.S. export, and U.S. import services
• FedEx Ground and FedEx Home Delivery rates increasing by an average of 4.9%, with FedEx SmartPost rates also changing;
• Here’s the biggie – the FedEx Express and FedEx Ground U.S. domestic dimensional weight advisor will change from 166 to 139
• FedEx Freight rates will increase by an average of 4.9%
• Finally, the FedEx Freight extreme length surcharge will change from $88 to $150 and be applied to shipments 12 feet or greater compared to the prior 15 feet
In the end, conceivably the most significant change announced by FedEx that fuel surcharges for FedEx Express and FedEx Ground will be adjusted on a weekly basis instead of the current process in which adjustments are made on a monthly basis with a two-month lag between U.S. government published fuel indexes and the fuel surcharges.
At LSO, we’ve built our business by adapting to our customers’ business.
Our LSO team will develop a tailored approach for your geographical region, enabling us to provide fully customized shipping solutions and more direct routes that meet your exact needs.
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