FedEx and UPS to Raise Small Package Rates

FedEx and UPS are increasing envelope and small package shipping rates for 2011.

Effective January 3, the cost to ship an overnight envelope with Memphis-based FedEx Express will increase by a net average of 3.9 percent, according to PartnerShip, the provider of ABA’s Discount Shipping Program. The full average rate increase of 5.9 percent will be partially offset by a fuel surcharge reduction of two percent. Pricing changes for FedEx Ground and FedEx SmartPost for calendar year 2011 will be announced later this year.

Also effective January 3, the cost to ship with Atlanta-based UPS ground and express services will increase by a net average 4.9 percent for U.S. domestic and U.S. export services. The rate increase for UPS ground shipments reflects a 5.9 percent increase in the base rate, less a one percent reduction to the ground fuel surcharge. The rate increase for UPS air express and international shipments is based on a 6.9 percent increase in the base rate, less a two percent reduction to the air and international fuel surcharges.

PartnerShip also noted that FedEx and UPS will also implement a change to the dimensional weight volumetric divisor, which may substantially raise shipping rates for companies whose packages are subject to dimensional weighting, such as retailers and companies that ship lower density packages.

Details of dimensional weight charges and additional changes that will be made to other FedEx Express surcharges can be found at fedex.com/us/2011rates. Updated UPS rate and service information can be found on ups.com/rates. On January 3, 2011, when the new rates take effect, customers can download the 2011 Rate and Service Guide.

The ABA Discount Shipping Program, managed by PartnerShip, offers discounts that help counter the annual carrier rate increases and allow members to recoup at least a portion of their shipping costs. PartnerShip will also help ABA members understand the complexities of shipping rates, accessorial charges, dimensional weighting, and more.

Booksellers can call PartnerShip (800) 599-2902 to speak with a shipping logistics professional. Additional information about the ABA Discount Shipping Program is available at partnership.com/07ABA.