Parcel - February 2008 - (Page 21) 2nd Day Air Hundredweight rates increased in all Tiers from 5.8 – 6.1%. There is a significant difference in the percentage increase among zones within each Tier. For example, in Tier 1, zone 3 increased 3.1% while zone 6 rose a staggering 9.0%. 2nd Day Air A.M.: 10:30 A.M. or Noon second business day delivery of both letters and packages to metropolitan commercial addresses where UPS Next Day Air delivery is committed by 10:30 a.m. or Noon. This service is not available to destinations where UPS Next Day Air delivery is committed by end of day. There was a substantial increase in all zones for letters and packages. Letters increased from $0.75 - $1.30 (6.7 – 9.9%) depending on the zone. Rates increased an average of 8.9% for 1 – 70 pound packages. Like 2nd Day Air, the higher the zone, the larger the increase. The rates for this service average 15.9% more than 2nd Day Air. 2nd Day Air A.M. Hundredweight rates increased in all Tiers from 5.7 – 5.9%. There is a significant difference in the percentage increase among zones within each Tier. For example, in Tier 1, zone 3 had no increase while zone 7 rose a staggering 9.0%. 3 Day Select: A third business day delivery of packages. There is not a letter rate with this service. There were significant increases in all zones. Rates increased an average of 6.2% for 1 – 70 pound packages. Same principle applies here as with 2nd Day Air. Rates increased 5.5% in zones 302 – 305, while increasing 6.6% in zones 306 – 308. The rates for this service average 32% less than 2nd Day Air but are two and a half times the price of Ground service. Since the majority of UPS’ ground packages are delivered within three days, careful study of this service should be conducted prior to its use. If you are using this service for zones 302 – 305, you are spending a lot of extra money for this service when Ground service will satisfy your service day requirement. Table 5 summarizes the impact of the increase. 3 Day Select Hundredweight rates increased 6.0 % for 200 – 499.9 pounds and 6.2% for 500 pounds or more. There is no increase for Zone 3 for all Tiers for 200 – 499.9 pounds. There is significant variance in increases between all zones for all Tiers. Ground Fuel Surcharge applies to all domestic and international transportation charges for the following services: To access the conclusion of this article and to view the tables referenced herein, please visit www.PARCELindustry.com. Joe Loughran is President of SmartTran, Inc. and an expert in small package carrier rate analysis. SmartTran, in its 12th year, is a transportation consulting company offering services in carrier rate negotiation, guarantee refund service and logistics planning. SmartTran’s management team has over 70 years of experience in package transportation management. Joe can be reached by phone at (724) 934-0626 or email loughran@smarttran.com ■ www.PARCELindustry.com February 2008 21 http://www.PARCELindustry.com http://www.PARCELindustry.com
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