logistics mngt2011

8
PARCELS WHEN THE OPTIONS ARE FEW WHAT CAN YOU DO

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Page 1: Logistics Mngt2011

PARCELSWHEN THE OPTIONS ARE FEW

WHAT CAN YOU DO

Page 2: Logistics Mngt2011

BECAUSE THEY CAN

USPS• “FedEx Express package

and freight rates will increase an average of 5.9% for U.S. and U.S. export services. The rate increase will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points”

UPS

• “UPS Air and International services will increase a net 4.9% through a combination of a 6.9% increase in rates and a 2% reduction in the UPS Air and International services fuel surcharge.”

• “An overall price change of 3.5 percent for Priority Mail, new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service will be effective Jan. 2. The overall price change for all Shipping Services products is 3.6 %. “

FedEx

Page 3: Logistics Mngt2011

UPS• UPS Ground services will

increase a net 4.9% through a combination of a 5.9% increase in rates and a 1% reduction in the UPS Ground services fuel surcharge.

FEDEX• FedEx Ground and FedEx

Home Delivery® rates will increase an average of 5.9%. The rate change will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 1 percentage point.

Page 4: Logistics Mngt2011

ARE YOU FEELING THE LOVE YET

• GROUND FUEL SURCHARGE JANUARY 2010• 5%

• GROUND FUEL SURCHARGE JANUARY 2011

• 5.5%• AIR FUEL SURCHARGE JANUARY 2010

• 7%• AIR FUEL SURCHARGE JANUARY 2011

• 9%

Page 5: Logistics Mngt2011

STUFF THEY FAIL TO POINT OUTThe Minimum Charge

• For Ground:• Going from $4.84• To $5.17• For just about everyone $.33 a package

+ fuel surcharge• EQUALS 6.9%• Few dodge this bullet – no matter how big your discount is

5

Where did the 5.9% go to?

Page 6: Logistics Mngt2011

THE KILLER

• Domestic Air services will change – from 194 to 166.

• Domestic Ground services will change – from 194 to 166 (applies to packages 3 cubic

feet or larger in size). (1728 cu. in.)

• Export services from the U.S. (all services) will change– from 166 to 139.

• Standard to Canada will change from 166 to 139 (applies to packages 3 cubic feet or larger in size). (1728 cu. in.)

• Import to the U.S. from Canada and Virgin Islands will change – from 166 to 139.

Page 7: Logistics Mngt2011

IT IS WHAT IT IS

Page 8: Logistics Mngt2011

HOW DO YOU SORT OUT HOW LARGE YOUR PAIN IS

HEMPSTEADCONSULTING.COM