Parcel - January/February 2009 - (Page 23)

2nd Day Air A.M.: 10:30 AM or 12:00 PM second business day deliver y of both letters and packages to metropolitan commercial addresses where UPS Next Day Air deliver y is committed by 10:30 AM or Noon. This ser vice is not available to destinations where UPS Next Day Air deliver y is committed by end of day. There was a substantial increase in all zones for letters and packages. Letters increased an average of 9.6% (5.9–13.2%) for all zones and from $0.70–$1.80. Rates increased an average of 9.2% for 1–70 pound packages. Like 2nd Day Air, the higher the zone the larger the increase. The rates for this service average 16.2% more than 2nd Day Air. 2nd Day Air A.M. Hundredweight rates increased an average of 8.0% for all tiers. There is a signiﬁcant difference in the percentage increase among zones within each tier. For example, in Tier 1, zone 243 had an increase of 4.4%, while zone 248 rose 9.7%. The impact is as follows: There is not a letter rate with this service. There were increases in all zones, but signiﬁcant increases were in zones 306–308. For zones 306–308, rates increased an average of 5.2% for 1–15 pound packages, while 16–70 pound packages went up 4.5%, on average. UPS has employed the same principle here as with 2nd Day Air — increase rates at a lower percentage in seldom-used low zones (302–305), while increasing the longer zones (306 – 308) at a greater percentage. The rates for this service average 34% 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 extra money for this service when Ground service will satisfy your service day requirement. Table 5 summarizes the impact of the increase. TABLE 5 – 3 DAY SELECT (percent increase) lbs/zone 1–15 16–70 71–150 TOTAL 302 303 304 305 306 307 308 Total 3.8 3.8 4.1 4.0 4.7 5.4 5.5 4.7 3.0 3.0 3.0 3.6 3.6 4.9 4.9 4.0 3.0 2.9 2.9 3.5 3.5 4.9 4.9 4.0 ––––––––––––––––––––––––––––––––––––––––––––– 3.0 3.0 3.0 3.5 3.6 4.9 4.9 4.0 PERCENT INCREASE TIER 1 2 3 4 5 6 7 100 POUNDS OR MORE 8.1 8.1 8.0 7.9 8.1 8.1 8.0 3 Day Select: A third business day delivery of packages. 3 Day Select Hundredweight rates increased 4.5% for 200 –499.9 pounds and 4.5% for 500 pounds or more for zones 306-308. www.PARCELindustry.com / JANUARY - FEBRUARY 2009 23 http://www.afms.com http://www.afms.com http://www.PARCELindustry.com

Table of Contents Feed for the Digital Edition of Parcel - January/February 2009

Parcel - January/February 2009 Contents Editor’s Note Going Global Transportation ABCs Mastering Management Regional Alternatives Practical IT Best Practices Packaging 12th Annual UPS Rate Analysis Navigating Dim Weight Charges More than Just a Postscript Understanding RFID PARCEL Counsel New Products Reality Check

Parcel - January/February 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.