Tag: FedEx

What the potential UPS strike could mean for your packages | CNN Business

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A UPS strike by 185,000 workers 25 years ago brought the logistics giant’s operations to a standstill. The 15-day strike slashed package deliveries, overwhelmed the US Postal Service and FedEx, and hurt businesses across the United States.

Now, more than 340,000 UPS workers represented by the Teamsters union are threatening to strike over pay, hours and working conditions if there is no agreement in contract talks between the company and the union. If a strike takes place, it would be the largest single-employer strike in US history.

The work stoppage would also kick off as shoppers head into the back-to-school season and retailers prepare for the peak holiday stretch later in the year.

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FedEx Follows UPS in Announcing Shipping Rate Increases | Small Biz Trends

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FedEx Express, the popular express delivery and parcel shipping service, announced Monday it will increase shipping rates by an average of 3.9 percent for U.S. domestic, U.S. export and U.S. import deliveries. FedEx Ground and FedEx Home Delivery will also increase by an average of 4.9 percent. The new shipping rates will take effect January 2, 2017.

New FedEx Express Shipping Rates

In a nutshell, the recently announced FedEx rate changes include:

  • FedEx Express rates which will increase by an average of 3.9 percent for U.S. domestic, U.S. export, and U.S. import services,
  • FedEx Ground and FedEx Home Delivery rates which will increase by an average of 4.9 percent, with FedEx SmartPost rates also changing,
  • FedEx Express and FedEx Ground U.S. domestic dimensional weight advisor which will change from 166 to 139, and
  • FedEx Freight rates which will increase by an average of 4.9 percent.

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E-tailers: Minimize the Impact of DIM Charges over the Holidays | Get Entrepreneurial

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By now, you are probably aware of the dimensional weight charges implemented by big shipping carriers UPS and FedEx back in January. Under these changes, packages less than 3 cubic feet are subjected to dimensional weight pricing, also referred to as DIM pricing and DIM charges. DIM pricing calculates shipping costs based on a package’s volume— or how much space it occupies— in relation to its weight.

DIM charges, which have been applied to air shipments and larger ground parcels for a while, are now being applied to smaller ground parcels due to the increase in e-commerce sales. The continued popularity of online shopping has led to a steady increase in the volume of packages handled by carriers like UPS and FedEx, resulting in higher operating costs for these carriers. According to Alan Gershenhorn, UPS executive vice president and chief commercial officer, dimensional weight pricing “enables us [UPS] to more appropriately align rates with costs which are influenced by both the size and weight of packages.”

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