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---- Rate increases from UPS and FEDEX


pageoneresults - 4:54 pm on Jan 3, 2010 (gmt 0)


This is usually a time when small local carriers pick up new business. I worked with one for years. I remember when they first came on the scene with their obscenely low rates for California shipments. They went from being a 3 truck firm to a full blown cartage agent.

I think UPS and FedEx are thinking that we as merchants will continue to offer Free Shipping and just absorb the increases. We're better off offering discounts and leave shipping as is. That whole Free Shipping is too volatile and after these increases, I sure hope many will take a look at their practices in this area and make adjustments where necessary. If you don't, you're going to lose your shorts as they say.

So, UPS and FedEx business is down? And they both decide to increase rates to compensate for the losses? Ya, that's what they are doing. Are these two in collusion?

On a side note, I have two clients that have switched to USPS exclusively unless an overnight shipment is required which is rare these days given costs involved.

Address Verification Services are going to be hot commodities in 2010. Actually, they have been for quite some time, they'll just get a little more play now.


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