Tag: North America

Fuel costs take a toll on holiday shipping fees

Posted by | Nov 22, 2007 | |

FedEx, UPS and the Postal Service have all increased prices to help counter the higher fuel costs they are paying.

For years, UPS and FedEx have added a surcharge based on the price of diesel and jet fuel which can make shipping costs fluctuate. With crude oil prices hitting record highs, the recent movement in shipping prices has been up — way up.

Anything shipped by air after Dec. 3 will have a 17.5 percent surcharge added to it by UPS or FedEx. For ground delivery, a 5.25 percent fuel surcharge will be added to the companies’ base rate.

The add-ons mean a 2-pound package shipped from Raleigh to Albuquerque, N.M. for two-day delivery in December will cost USD 21.79, up from about USD 17.49 a year ago via UPS express. The same parcel on FedEx will cost USD 18.21, up from USD 16.68 a year ago.

The higher fees include increases in base shipping rates that rose 4.9 percent for UPS and 3.5 percent for FedEx this year. But most of the increase can be blamed on higher fuel costs.

A year ago, the UPS and FedEx fuel surcharge for express delivery in December was 11.5 percent. The ground delivery surcharge was 3.5 percent.

Still, both UPS and FedEx expect record volumes this year. FedEx expects to deliver 11.3 million packages on peak days before Christmas and UPS expects to deliver 22 million.

The Postal Service raised rates by an average of 8.5 percent in May to cover anticipated fuel price increases. It expects to deliver 20 billion pieces of mail, including packages, between Thanksgiving and Christmas, spokesman David Partenheimer said.

The Postal Service offers an USD 8.95 flat rate for two- or three-day priority delivery for most packages, up from USD 8.10 a year ago. The rate is for domestic mail but also applies to people sending gifts to relatives in the military overseas, regardless of the size or weight of the package being shipped.

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Online sales ease crunch for U.S. package giants

Posted by | Nov 21, 2007 | |

The U.S. economy is being threatened by everything from the housing credit crunch to high gasoline prices, but John Nikolich has yet to see it.

Indeed, neither company seems to expect much beyond modest package volume growth.

Officials at UPS said in October that its growth this peak season would be slower than in the previous four years. FedEx last week cut its forecast for the company’s current quarter that ended Nov. 30, citing fuel costs and weak freight volumes in its trucking unit.

But the saving grace for this year’s peak season? While in-store retail sales will see slight growth, online sales are expected to rise at a far higher pace.

Although consulting firm TNS Retail Forward has projected the credit crunch will slow overall retail sales growth in November and December to 3.3 percent — the lowest since 2002 — bringing the total to some USD 471 billion.

Though still a small portion of that total, as in previous years online sales should grow much faster than in-store sales. TNS predicts they will jump 18.5 percent to nearly USD 42 billion.

“We do expect to see a rising percentage of package volumes coming from the e-commerce channel,” UPS spokesman Norman Black said. “This is a trend we’ve seen for some time and we don’t expect that to change. People like shopping online.”

In a press release on Oct. 29, FedEx CEO Fred Smith noted that despite slowing overall U.S. economic growth “e-commerce will continue to drive holiday spending” this year.
“Online sales should be a core component of the growth they (UPS and FedEx) are predicting,” S&P’s Corridore said.

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3M Touch Systems announces large-format touchscreens

Posted by | Nov 21, 2007 | |

3M Touch Systems Inc. has announced that its MicroTouch DST touchscreens will be available Jan. 1, 2008. MicroTouch DST touchscreens will be offered for select authorized NEC Integrators in North America in 32-, 40- and 46-inch screen sizes.

Based on 3M’s patented Dispersive Signal Technology, MicroTouch DST touchscreens offer display integrators that are an ideal solution for large-format interactive applications that require fast, accurate, reliable touch response. Other features include operation unaffected by surface contaminants and “dynamic touch”, which ignores static objects on the screen and allows for multi-user touch capabilities.

“DST touchscreens offer important ease-of-integration features not available from comparable touch technologies, such as no front surface components to impede bezel integration, easily sealable, and chemically-strengthened glass,” said Chris Tsourides, 3M Touch Systems’ business manager.

Dispersive Signal Technology recognizes touch by interpreting bending waves within the glass substrate created by the contact of a finger or stylus on the glass. Since bending waves are unaffected by on-screen contaminants and moderate surface damage, DST touchscreens work reliably for most public environments and applications, such as interactive digital signage, public way finders, point-of-information stations, corporate directories, retail product selectors, as well as conference room and education presentation systems.

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'Keep America Beautiful' awards UPS

Posted by | Nov 21, 2007 | |

Keep America Beautiful, Inc., the nation’s largest nonprofit community improvement organization, awarded UPS its 2007 Vision for America Award at the 22nd anniversary dinner in New York City Tuesday. Michael L. Eskew, Chairman and CEO of UPS, accepted the award on behalf of UPS’ more than 425,000 employees worldwide.

Keep America Beautiful recognized UPS one of the world’s most respected brands for its leadership role in volunteerism and environmental sustainability. The Vision for America Award is presented annually to distinguished leaders of honored corporations, whose personal and corporate commitment have significantly enhanced civic, environmental and social stewardship throughout the United States. Commissioner John J. Doherty of the New York City Department of Sanitation and Keep New York City Beautiful joined Keep America Beautiful in recognizing UPS and Eskew for this honor.

Another factor in KAB’s selection of UPS was the company’s commitment to volunteerism, and its direct support of KAB’s recent Volunteer Management program. Responding to a growing need to retain high-quality volunteers, KAB executive directors and volunteer leaders across the country were trained using course guides, Webinars and workshops funded by the UPS Foundation. Volunteerism is a critical part of the UPS culture. The company’s Neighbor to Neighbor employee volunteer program alone logs nearly 1 million hours each year and UPS, its employees and retirees, have been the top contributor to United Way for seven years.

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United Parcel Teamsters ratify new five-year contract

Posted by | Nov 20, 2007 | |

United Parcel Service Inc. workers represented by the Teamsters approved a five-year contract with annual wage and benefit increases of about 4.1 percent, the union said.

The agreement, reached Sept. 30, was ratified by 65 percent of Teamsters voting, union spokesman Bret Caldwell said today in an interview. Atlanta-based UPS, the world’s biggest package- shipping company, is the largest employer of Teamsters.

UPS and the Teamsters agreed on terms 10 months before the existing contract expires, early enough to assuage customers who might have shifted to rival shippers if there was danger of a strike. The agreement covers about 240,000 UPS drivers, clerks and package sorters.

UPS hasn’t disclosed its costs for the contract, which takes effect Aug. 1. In addition to the wage and benefit increase, Atlanta-based UPS agreed to pay USD 6.1 billion before taxes to withdraw from the Central States Fund, a multiemployer pension plan for 42,000 Teamster members.

Five contract supplements that affect local Teamster units were rejected, and negotiations on those will resume, the union said. The supplement votes don’t affect the national agreement.

UPS will pay about USD 3.9 billion after taxes to exit the Central States fund, analysts have estimated. The company wanted to leave the underfunded plan to gain stability in pension costs. It agreed to fully fund a new plan run by the company and the union.

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