Fedex Rate Increase - 2017

[ultgar]

I just received an email from Fedex that their ground rates are increasing 4.9% effective January 2nd, 2017. UPS is probably sending out a similar letter to their customers.

More importantly, the dimensional rate factor is changing from 166 to 139 (dim wt increase of approx 20%). For example, a Nilfisk shop vacuum, weighing 49 lbs in a 32x16x28 box, will now ship at the same cost as a 103 lb package.

Also, if you purchase any long items (ie, over 12' in length...piping, 80/20 extrusions, long Festool guide rails, moldings, etc), the surcharge on these packages will be $150.00. In 2016, the surcharge is for 15' or longer....they are now dropping it to 12'. Vendors will likely be shortening their lengths to 11.5' to avoid this costly surcharge.

If you have any large item purchases, regardless of vendor (tool boxes, shop vacs, lengths of piping or extrusions, etc), please try to make them before the rate increase.

As a side note, I'd love to see Amazon get into the shipping business as an alternative to UPS and Fedex. USPS is my shipper of choice these days (they don't have residential, rural area, dimensional or fuel surcharges) but USPS will not handling packages where LxWxH exceeds 108".

SD

 

[pcmeiners]

" USPS is my shipper of choice these days (they don't have residential, rural area, dimensional or fuel surcharges) "
But they do surprise packages, as your always surprised when you get a package, could be 2 days early or 2 months late. Tracking, that is a surprise also.

 

[Fordman7795]

USPS does have dimensional surcharges

 

[ultgar]

" USPS is my shipper of choice these days (they don't have residential, rural area, dimensional or fuel surcharges) "
But they do surprise packages, as your always surprised when you get a package, could be 2 days early or 2 months late. Tracking, that is a surprise also.

I found that to be the problem with Fedex SmartPost....Fedex picks up the package and (eventually) turns them over to USPS for delivery. I will no longer use that service....it was terrible in my opinion.

I try to use USPS Priority and preferable their flat rate boxes. I'll still use Fedex for high value shipments.

Customers expect free or low cost shipping these days thanks to Amazon. Free shipping on large items is likely to disappear unless vendors start loading some of this cost into the price of their products.

 

[Fordman7795]

I found that to be the problem with Fedex SmartPost....Fedex picks up the package and (eventually) turns them over to USPS for delivery. I will no longer use that service....it was terrible in my opinion.

I try to use USPS Priority and preferable their flat rate boxes. I'll still use Fedex for high value shipments.

Customers expect free or low cost shipping these days thanks to Amazon. Free shipping on large items is likely to disappear unless vendors start loading some of this cost into the price of their products.

Yeah, smartpost is pretty terrible. VERY slow. I havent used it in quite some time now. And I was constantly being over-billed for it. Say Id send a 12x12x12 5lb package, I would be billed at 18x18x18 10lbs for no reason.

 

[ultgar]

USPS does have dimensional surcharges

Correct....but the surcharges only apply to shipments Zone 5 and above. Customer less than 400-500 miles (zone 1-4) don't get hit with the surcharge. Strange!

 

[wrenchguy]

fed-ex won't deliver to my rear door, leaving packages out front in the drive way. i refuse them and make them pick it up. they ****.

 

[ultgar]

About 10 years ago, a customer ordered a set of AC Hydraulics jackstands from me and left instructions for Fedex........."leave package on porch". He came home to find the box on the roof of his 911 (Porsche). SD

 

[anndel]

Well shipping to Hawaii is "Take it or leave it". Most vendors ship UPS or FedEx 2nd day air and don't offer ground service. I see they are starting to offer ground service to Hawaii and Alaska. If I had and option to select it'll be USPS Priority Mail as my 1st choice. I try to stay away from Smartpost as it takes longer and the tracking *****.

 

[ultgar]

Well shipping to Hawaii is "Take it or leave it". Most vendors ship UPS or FedEx 2nd day air and don't offer ground service. I see they are starting to offer ground service to Hawaii and Alaska. If I had and option to select it'll be USPS Priority Mail as my 1st choice. I try to stay away from Smartpost as it takes longer and the tracking *****.

I did a SmartPost shipment from NJ to HI awhile back.....it took 30 days to get to its destination.

 

[pcmeiners]

"I found that to be the problem with Fedex SmartPost...."

Yes, this was used when one of my packages was lost for 2.5 months another for 3 weeks over the estimated delivery date. Tracing was an absolute nightmare. was about useful as asking the IRS about a tax issue.

 

[PureLeaf]

Because Ryan won't let user's delete their own content

 

[Todd.Brock]

Amazon is leasing airplanes now and will be carrying their own (some of, anyway ) cargo. This could get interesting

 

[Engine]

I just received an email from Fedex that their ground rates are increasing 4.9% effective January 2nd, 2017. UPS is probably sending out a similar letter to their customers.

More importantly, the dimensional rate factor is changing from 166 to 139 (dim wt increase of approx 20%). For example, a Nilfisk shop vacuum, weighing 49 lbs in a 32x16x28 box, will now ship at the same cost as a 103 lb package.

Also, if you purchase any long items (ie, over 12' in length...piping, 80/20 extrusions, long Festool guide rails, moldings, etc), the surcharge on these packages will be $150.00. In 2016, the surcharge is for 15' or longer....they are now dropping it to 12'. Vendors will likely be shortening their lengths to 11.5' to avoid this costly surcharge.

If you have any large item purchases, regardless of vendor (tool boxes, shop vacs, lengths of piping or extrusions, etc), please try to make them before the rate increase.

As a side note, I'd love to see Amazon get into the shipping business as an alternative to UPS and Fedex. USPS is my shipper of choice these days (they don't have residential, rural area, dimensional or fuel surcharges) but USPS will not handling packages where LxWxH exceeds 108".

SD

If I read this correctly, similar increases will be in place at UPS.

Shown at https://smallbiztrends.com/2016/09/september-2016-fedex-rate-increase.html

UPS Shipping Rate Hikes

UPS announced new shipping rates on September 19. The new UPS rates will take effect December 26, 2016, and represent a 4.9 percent increase (on an average) of its service rates on all ground, air and international shipments.

Additional UPS rate changes include:

Daily rates for UPS U.S. Air and International services which will increase an average net 4.9 percent, UPS Air Freight rates within and between the U.S., Canada and Puerto Rico which will increase an average net 4.9 percent, also effective December 26, 2016, and UPS Freight which will also increase an average net 4.9 percent effective September 19, 2016.

UPS also stated in its announcement that an additional handling surcharge will apply to any package with the longest side exceeding 48 inches, instead of 60 inches for all Air and International packages. The additional handling charge will increase by $0.35. The shipping company also said that effective January 8, 2017 additional handling surcharges will apply to UPS SurePost packages.

 

[Showkey]

Guess theses guys did not get the memo that............cost of living is up just .3%

In 2017, big changes are coming to Social Security, arguably the most important social program for retired workers. About five weeks ago, we took a brief look at seven of these major changes.

Topping the list was the smallest cost-of-living adjustment (COLA) on record for Social Security -- just 0.3%. Though this beats the three years since 2009 in which no COLA was granted, other costs, such as medical expenses, are rising at a much quicker pace than 0.3%. In other words, seniors are getting a small raise, but it doesn't appear to be keeping up with their actual expenditures.

 

[neonlazer]

For UPS, rates jump 5% every year. I know they have been investing in lots of propane trucks, and implementing Orion.(new routing system that some drivers rather throw out the door)

 

[stioc]

Fedex *****. I buy thousands of dollars worth of stuff each year mostly from Amazon but lately from other sites too since Amazon isn't always the cheapest anymore. Well the one order Walmart shipped (weight lifting curling bar) via Fedex, they never delivered and claimed delivered at a certain date and time. Funny I have video cameras and I see no fedex truck pulling up that entire day. I called Walmart, they reshipped it and this time I got it (via FedEx again). But on principle I call FedEx and after waiting and some running around they tracked down the driver. The driver comes by leaves a note confirming that he delivered to my house. I called them again saying I have video footage and the driver is not telling the truth. This went on over several days and they closed the case (automated email notifying me of that). I gave up on it but I much prefer UPS myself.

 

[Packard V8]

Fedex *****. I buy thousands of dollars worth of stuff each year mostly from Amazon but lately from other sites too since Amazon isn't always the cheapest anymore. Well the one order Walmart shipped (weight lifting curling bar) via Fedex, they never delivered and claimed delivered at a certain date and time. Funny I have video cameras and I see no fedex truck pulling up that entire day. I called Walmart, they reshipped it and this time I got it (via FedEx again). But on principle I call FedEx and after waiting and some running around they tracked down the driver. The driver comes by leaves a note confirming that he delivered to my house. I called them again saying I have video footage and the driver is not telling the truth. This went on over several days and they closed the case (automated email notifying me of that). I gave up on it but I much prefer UPS myself.

FedEx insurance and claims is the worst - don't even bother to go there, as their plan is to deny everything and pay nothing. If the seller won't make it right, you're screwed.

I once took in a package to the downtown Albany, NY FedEx office, addressed to myself in Spokane, WA. I was back home when it arrived. I could tell from the light weight the box didn't contain what I shipped. I pointed out the weight on the label was 3X more than was delivered, opened it in the presence of the driver and took a photo of the junk inside. After twenty different phone calls, they wore me down and I gave up, even though the package had always been in their hands, so it had to be one of their people who stole the contents and re-sealed the box.

jack vines

 

[zendriver]

Preview for the coming attraction.

I-N-F-L-A-T-I-O-N

Everybody get ready.

Another issue affecting interest rates is inflation. For several years, low inflation has supported the “trend within markets…to invest in rate-sensitive investments like bonds, which benefit from low inflation, and their equity surrogates which benefit from falling bond yields,” wrote Schroders.

In recent weeks, the bond market has been influenced by inflation prospects. The Wall Street Journal explained:

“Worries about higher inflation have been a main factor fueling one of the biggest bond market selloffs since the crisis over the past weeks. The selloff had accelerated after the U.S. election in early November. Investors then had bet that the prospect of expansive fiscal and economy policy from the new U.S. administration would lead to stronger growth and higher inflation

http://surfky.com/index.php/hopkins/179-news/kentucky/114894-market-commentary-dec-5-2016

 

[Git]

I have started see the Amazon owned delivery vans in my area. Decent looking vans, not the beat up POS vans their contractor (ONTRAC) drives around

The way I understand it - Amazon is to blame for a lot of these price increases.
Amazon wants to limit the sizes of boxes they have on hand and end up using boxes that are really to big for the size of the item that is being shipped. (I think we have all gotten a box from Amazon at one time of or another and you open it up and think WTF).

So now we have these oversized boxes taking up space in the back of the vehicles and the shipping companies have to change their pricing structure to keep up

 

[rustyjames]

I've always had good experiences shipping heavier items with FEDEX. Their pricing on the heavier/larger stuff is much less than USPS or UPS, at least from all my experiences.

 

[WWheeler]

About 10 years ago, a customer ordered a set of AC Hydraulics jackstands from me and left instructions for Fedex........."leave package on porch". He came home to find the box on the roof of his 911 (Porsche). SD