2013 is right around the corner and that means that your shipping costs are about to increase, again. So how bad will it be this time around? FedEx recently announced its rate increases for 2013 for both Domestic and International Express services and you should be prepared for an even larger increase than seen in 2012. Below are some of the rates increases that you can expect to see at the beginning of the year:
- Residential delivery charge will increase by 6.6 percent
- Declared value charges for items over $100 will increase by 6.25 percent
- Address correction charges will go up by about 9 percent
- Delivery area surcharges - up by 8.3 percent for residential and 7.5 percent for commercial
FedEx's general rate increase is the same as last year's at 5.9 percent (with a net increase of 3.9 percent when you factor in a 2 percent fuel surcharge reduction), however many customers could see their rates go up as much as 10.5 percent dependent upon their shipping zone and level of service. And no one can escape the inevitable fees and charges that come about as a result of shipping errors and address changes.
More often than not, it is the case that the more cost-conscious shippers will be hit the hardest by FedEx's rate increases. FedEx knows that more companies are opting for a lower level of service to help cut increasingly high shipping costs. To make up for this decrease in premium services, FedEx has increased the rates on economy services at a much more substantial percentage than on their premium services.
The January 7, 2013 effective date is fast approaching and shippers won't have a lot of time to prepare themselves for the new rates. Many will struggle to find a way to balance the rate increases with their 2013 shipping budgets. Now is the time to start thinking about smart ways to save in other areas of your business so that your budget isn't crushed by the new increases in shipping.
- Residential delivery charge will increase by 6.6 percent
- Declared value charges for items over $100 will increase by 6.25 percent
- Address correction charges will go up by about 9 percent
- Delivery area surcharges - up by 8.3 percent for residential and 7.5 percent for commercial
FedEx's general rate increase is the same as last year's at 5.9 percent (with a net increase of 3.9 percent when you factor in a 2 percent fuel surcharge reduction), however many customers could see their rates go up as much as 10.5 percent dependent upon their shipping zone and level of service. And no one can escape the inevitable fees and charges that come about as a result of shipping errors and address changes.
More often than not, it is the case that the more cost-conscious shippers will be hit the hardest by FedEx's rate increases. FedEx knows that more companies are opting for a lower level of service to help cut increasingly high shipping costs. To make up for this decrease in premium services, FedEx has increased the rates on economy services at a much more substantial percentage than on their premium services.
The January 7, 2013 effective date is fast approaching and shippers won't have a lot of time to prepare themselves for the new rates. Many will struggle to find a way to balance the rate increases with their 2013 shipping budgets. Now is the time to start thinking about smart ways to save in other areas of your business so that your budget isn't crushed by the new increases in shipping.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about shipping vendor cost optimization
No comments:
Post a Comment