UPS and FEDEX look to Increase Rates

Now that DHL will exit the USA domestic market, and fewer options exist for small package shipments, United Parcel and Federal Express will increase shipping rates. These two carries will inherit one million packages per day; given the DHL withdrawal and websites, such as Paper.com, have fewer alternatives. UPS recently announced one of the highest increases in history (5.90%) for ground shipments. One bright spot is the reduction of fuel surcharges, which peaked at 34.5% in September. The current surcharge (December 2008) is 6.75%. The increase in shipping fees will hurt the Internet business somewhat, adding costs in a challenging economic time.