[AMRadio] FedEx (& UPS?) Rate Increases

Merz Donald S merz.ds at mellon.com
Wed Dec 1 11:37:55 EST 2004

Well it's that time of year again--24 days until Christmas and 33 days until your favorite shippers' rates go up. So what's the damage? UPS and FedEx Ground have the same ICC rate card. So their rates are set by the Feds. The announcement I am reading from here is for FedEx. But I would expect it to be the same for UPS.

Here's the summary. This is all for Ground service (as opposed to Express).

2.9% increase for simple ground delivery
2% fuel surcharge added to ground shipments for the first time (previously this only applied to Express)
Residential delivery surcharge up from $1.75 per package to $2 per package
Insurance goes up from 35 cents per $100 to 40 cents per $100. The trick is that there's a minimum insurance charge for anything over $100 of $1.20.

So a 35 pound, $200 package sent across the USA to a residential address will run you 50 to 65 cents per pound, all-in. 

Nothing ships anywhere by this service for less than $10. That $2 per package residential fee puts these services on par with USPS for light weight, relatively local packages. Some USPS services, like media mail, start to look like great bargains.

No need to thank me for providing this information. It's just a little bit of added holiday cheer.

73, Don Merz, N3RHT
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