FedEx recently announced that it will increase FedEx Ground and FedEx Home Delivery shipping rates by an average of 4.9 percent Jan. 7.
The company will also adjust its fuel surcharge down by one point, making the effective rate increases a little lighter. The company will announce its full surcharge rates for FedEx Ground Dec. 7.
Earlier this year, the company released its rate increases for FedEx Express and FedEx Freight. U.S. Express shipping prices will rise by an average of 3.9 percent next year. A freight rate increase of 6.9 percent will go into effect July 9. Last year, FedEx Express rates went up by 5.9 percent — offset by a 2-point reduction in the fuel surcharge — and ground rates went up 5.9 percent — offset 1 point by the fuel surcharge reduction.
UPS released its rates for next year in the middle of November, noting an average increase of 4.5 percent on all air services originating in the U.S. Ground services are to go up by 4.9 percent. The air rate, according to a company press release, is actually a 6.5-percent increase that has been diminished by a fuel-surcharge adjustment. The base rate for ground services is 5.9 percent. Air freight rates between the U.S., Canada and Puerto Rico are to go up by an average of 4.9 percent. The new rates take effect Dec. 31.
DHL's average price increase in the U.S. for next year sits at 5.9 percent. The new prices, which take effect Jan. 2, will be offset by a 2-point fuel-surcharge reduction. Stephen Fenwick, CEO of DHL Express Americas, said that even though DHL has been doing well this year, what will happen to the logistics sector next year is hard to anticipate.
"Overall, our business grew profitably, although prices remained low and the air freight market was sluggish," Fenwick told American Shipper
. "Uncertainties persist due to the macroeconomic environment."
For now, the integrator is focused on the present, shuttling capacity to where it is needed the most.
"DHL is evaluating all routes and making adjustments as required," he said, "especially during holiday season." - Jon Ross