UPS Rate Increase is Largest in company's history

[Hauk]

Effective January 1st, UPS rolled out the largest rate increase in the company's history.

A couple years ago UPS came up with a "dimensional weight" charge that was added to air packages. Regardless of the package weight, new rates are based off the size of the box. They look at it as square footage on the plane.

January 1st, dimensional weight charges become effective for ground packages as well. A package that physically weighs 10lbs will be billed, as an example, at 30lbs if it's an 18x18x12 box.

Be prepared to see shipping rate increases for big box items. My company has already informed our customers that freight programs are under review. We ship a couple thousand packages per day. Watch freight charges for computer cases over the next few weeks...

UPS Rate Increase Notification

 

[Shawn]

Hopefully newegg will switch back to fedex.

 

[Fullmetal Chocobo]

I thought you were posting that the workers' wage rate had increased, and I was like :thumbsup:

 

[blurredvision]

Originally posted by: Shawn
Hopefully newegg will switch back to fedex.

FedEx raised their rates on the 1st as well. Not sure how they compare, though.

http://www.fedex.com/us/rates2007/

 

[mrSHEiK124]

Originally posted by: Shawn
Hopefully newegg will switch back to fedex.

 

[tm37]

Originally posted by: Fullmetal Chocobo


I thought you were posting that the workers' wage rate had increased, and I was like :thumbsup:

because that would have had no effect on shipping rates.

 

[MmmSkyscraper]

Royal Mail (in the UK) also changed their pricing system recently, with more emphasis on size. It was cheaper for my colleague to return a book to Amazon using DHL (£3) instead of using the traditional post (£10!).

 

[Bateluer]

UPS needs more fuel efficient aircraft. Boeing 787?

 

[chrisms]

Can't blame the government, they are a bit short on cash these days.

oops thought it was usps i suck

 

[j00fek]

its all about the gas prices

 

[FoBoT]

i use DHL for ground, it is very cheap

 

[lozina]

Hopefully they will finally invent that object teleporter device now

 

[PAB]

Originally posted by: SteelSix
Effective January 1st, UPS rolled out the largest rate increase in the company's history.

A couple years ago UPS came up with a "dimensional weight" charge that was added to air packages. Regardless of the package weight, new rates are based off the size of the box. They look at it as square footage on the plane.

January 1st, dimensional weight charges become effective for ground packages as well. A package that physically weighs 10lbs will be billed, as an example, at 30lbs if it's an 18x18x12 box.

Be prepared to see shipping rate increases for big box items. My company has already informed our customers that freight programs are under review. We ship a couple thousand packages per day. Watch freight charges for computer cases over the next few weeks...

UPS Rate Increase Notification

Don't forget this! There is now NO DISCOUNT if you have an account over the retail counter. If I'm not saving any money over the counter, why the ****** should I have an account anyways?

I think I'm going to buy some stock in Fedex today.

 

[slsmnaz]

Overall UPS is still better and cheaper for our business (we ship out about 50,000 packages a day in the US). FedEx is ok but with their extra hardware required and problems with sending our package info it's getting harder to do business with them.

 

[vi edit]

Combine that with the recent rate increases at Ebay and it's starting to get pretty expensive to sell online anymore.

 

[Schadenfroh]

Originally posted by: Shawn
Hopefully newegg will switch back to fedex.

 

[moshquerade]

Originally posted by: FoBoT
i use DHL for ground, it is very cheap

i have only had bad experiences with DHL.

 

[ballmode]

whoaaaa

 

[lozina]

Originally posted by: ballmode
whoaaaa

Thanks, Keanu

 

[elektrolokomotive]

The shipping charges on Ebay items were stupid expensive before this. This will quickly erode Ebay's volumes, I predict.

 

[Phokus]

Originally posted by: lozina
Hopefully they will finally invent that object teleporter device now

If they do, i'll teleport myself into fort knox and 'help myself' to a 'few' gold bars

 

[OrganizedChaos]

Originally posted by: lozina
Hopefully they will finally invent that object teleporter device now

they will, but it will only be able to be used for sending cash to freight carriers.

 

[KentState]

I can understand why they went with the change. If they load a truck with 100 boxes of pillows, they make less money compared to 1000 boxes of something smaller but of the same weight.

Working for a company that ships 50k+ packages a day, we are not liking the increase. Can easily add a couple million dollars of extra expenses each week.

 

[Gunslinger08]

Not sure why this is newsworthy. Every major carrier raises their rates at the beginning of most (if not all) years. USPS is usually the exception, since it is government run.

 

[KentState]

Originally posted by: joshsquall
Not sure why this is newsworthy. Every major carrier raises their rates at the beginning of most (if not all) years. USPS is usually the exception, since it is government run.

This is not a normal rate change. It's a new way of calculation ground shipping. From a cost perspective, it's a lot more than any annual increase.