Parcel - January/February 2009 - (Page 25)

Delivery Conﬁrmation Response - Signature Required $2.75 Delivery Conﬁrmation Response - Adult Signature Required $3.75 Hazardous Material - Per Package: Ground and $22.50 Standard To and From Canada - Per Package: All Other $32.50 Domestic Services Residential Surcharge - Air Services and 3 Day Select $2.40 - Ground $2.05 Saturday Delivery - Envelope or Package $15.00 Saturday Pick-up - Envelope or Package $15.00 - Hundredweight $15.00 Weekly Pick-up Charge - $0.00 - $14.99 $18.00 - $15.00 - $59.99 $13.00 - $60.00+ $ 9.00 $2.50 $3.50 $20.00 $30.00 10.0% 7.1% 12.5% 8.3% Brown. This reﬂects FedEx leadership position in express deliveries while UPS attempts to undercut their competitor in hopes of gaining greater market share. I suggest you visit the FedEx website to get a copy of all rate tables. Bottom line: Regardless of where each carrier’s base rates fall, all of the carriers choose to differentiate themselves price-wise in the marketplace through contract negotiations — on an account-by-account basis. Conclusion There you have it! What does the rate increase mean to your company? You can ﬁnd that out by analyzing your monthly package expenditure by computing the incremental cost using the old and new rates plus the surcharges, differentials and accessorial charges. (To help you accomplish that task, don’t forget that you can download 2009 UPS rates directly from the website: www. ups.com.) A detailed cost analysis will provide the necessary information to help you decide which service offerings best serve your company’s needs. No matter what services you choose to use, understanding how the rate increase impacts your budget and bottom line is a top priority! Have a prosperous 2009! Joe Loughran is President of SmartTran, Inc. and an expert in small package carrier rate analysis. SmartTran, in its 14th year, is a transportation consulting company offering services in carrier rate negotiation, guarantee refund service and logistics planning. SmartTran’s management team has 70 years of executive level experience in package transportation management. Joe can be reached by phone at 724-934-0626 or email him at loughran@smarttran.com a $2.30 $1.95 $12.50 $12.50 $12.50 $17.00 $12.00 $ 8.00 4.4% 5.1% 20.0% 20.0% 20.0% 5.9% 8.3% 12.5% FedEx Like UPS, FedEx Express and FedEx Ground implemented various rate hikes for 2009. FedEx Ground follows the lead of United Parcel Service when it comes to base Ground rates, they are virtually the same. Why not? It’s easy money. As you know, since its inception, FedEx Ground has been a price follower. FedEx Express maintains its long-term position of offering higher base Air rates than Big www.PARCELindustry.com / JANUARY - FEBRUARY 2009 25 http://www.ups.com http://www.ups.com http://www.PARCELindustry.com http://www.PARCELindustry.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

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