US companies face higher express and parcel costs in 2009
US-based companies will pay more for express and parcel deliveries next year following announcements of rate increases by UPS, FedEx and USPS.
FedEx Ground has become the latest major service provider to announce its 2009 rates. It will increase its standard list rates for FedEx Ground and FedEx Home Delivery by an average of 5.9% as of 5 January 2009.
FedEx Express announced new rates in September for US domestic and US export shipments, which will increase the same day by 6.9% on average, partially offset by adjusting the fuel price.
UPS said in October that it will increase prices by 5.9% on average for UPS Ground packages along with an average net increase of 4.9% on all air express and US origin International shipments on 5 January 2009. This was based on a 6.9% increase in the base rate, less a 2% reduction in the air and international fuel surcharge index.
The US Postal Service (USPS) said it will increase express and parcel prices by 5% on average with effect from 18 January 2009. Express Mail, offering guaranteed overnight delivery for documents and packages, will go up 5.7%, Priority Mail, the two-day delivery product, will be 3.9% more expensive, while Parcel Select, the large-volume shipping service, will go up 5.9% International shipping services will increase by 8.5%.
