As Demand and Fuel Costs Rise, So Do Package Shipping Rates

Posted in Reduce Shipping Costs Info, Shipping Industry and tagged on

Recently, UPS and FedEx announced sweeping increases in package shipping rates for both air and ground delivery services.  Averages of both companies’ rate increases work out to approximately 4.9% for shippers. However, a recent study by LJM Freight Auditing and Consulting concluded that many shippers, including retailers, actually face rate hikes from 6.5% to 8.8%. The study cites that both companies base their 4.9% average on a wide range of shipping one (1) pound packages through one hundred fifty (150) pounds to every available shipping zone. The reality according to LJM is that most shippers commonly ship parcels that weigh between one and thirty-five pounds and that is where the 6.5% to 8.8% increases are found.

Demand for both services continues to rise, especially from the online retail segment and specialty manufacturers. Industry experts cite investments in new equipment, vehicles, and personnel, as reasons for the rate increases. It is important to note that in the case of UPS, the 2012 rate increase matches the increase in 2011.

The rise in costs adds additional pressure to customers that rely on the shipping giants to deliver their goods to market. The economic challenges of the last few years, coupled with increased competition, dictate that shippers operate in an efficient manner and recover any costs associated with late or missed deliveries.

With the rising package shipping rates, and the need for you to focus on your core business, you need someone you can count on to track your shipments. Package Fox can not only track your shipments, but when you are entitled to a refund because of late or missed deliveries, Package Fox will submit a claim and follow up for you. To combat rising rates, and add to your shipping peace of mind, visit

Are you sending a out bunch of FedEx or UPS shipments every month? Chances are your invoices contain refund opportunities. Let PackageFox help you save some money.

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