How FedEx and UPS rate and surcharge increases will impact shippers in 2019
The rise of e-commerce has brought with it ever-increasing pressure for shippers to have a large volume of packages of all sizes delivered quickly. Parcel carriers have, and are, investing in technology and automation to meet that increase in volume while maintaining high service levels.
As a result, both FedEX and UPS have seen annual average rate increases of 4.9% since 2010 and 2019 is no different. In addition to the annual 4.9 percent increase in 2019, both carriers have increased several surcharges this year which will have a significant impact on shippers of all sizes.
FedEx increases go into effect January 7th while UPS increases start December 26th leaving shippers with little to no time to adjust their supply chain. Additionally, the U.S. Postal Service plans to raise rates on Priority Mail by almost 4% in early 2019.
Atlanta-based Spend Management Experts recently published a 2019 Carrier Increase Guide to help better understand these increases and to mitigate their impact on your supply chain bottom line. You can find it here.