A strong word of caution for parcel shippers: Both FedEx and UPS have announced what will amount to significant rate increases in freight costs for certain Ground Service packages.
The increases are a result of the parcel carriers’ recent decisions to implement Dimensional Weight Pricing for cartons that measure less than three cubic feet (5,184 Cubic Inches) when such packages are shipped via the parcel carriers’ Ground Service offerings. The FedEx rate increase will become effective on December 29, 2014 and UPS’s increase will take effect on January 1, 2015.
According to the parcel carriers, these increases are needed to offset their increased costs of handling and transporting these smaller packages within their Ground Service Networks. By some estimates, the impending rate increases will not only impact Read more