Volume 45: Special Delivery! We’ve Arrived at PARCEL Forum
Volume 45 Breakdown:?
Every week we’re catching you up on the top industry news stories from the previous week. Let’s get into it:
FedEx releases 5.9% average base rate increases
FedEx has announced a portion of their 2025 General Rate Increase (GRI). All 2025 package and freight base rates have been released. Accessorial increases, which make up a substantial portion of a GRI’s impact, are yet to be announced.
The base rates are increasing by an average of 5.9%, and will take affect on January 6, 2025.
USPS ending discounts for postal consolidators
The USPS is finalizing a recent push for postal consolidator partners, such as DHL eCommerce and OSM Worldwide, to inject packages into their network further upstream. The agency announced last week that they’ll no longer offer discounts on Negotiated Service Agreements for packages dropped off at Post Offices through the Parcel Select service.
The effort is part of the USPS’ “Delivering for America” transformation plan to become more profitable in the commercial parcel category.?
Postmaster General Louis DeJoy said “It’s challenging for us to justify entering into NSAs that incentivize bypassing our transportation and processing network, while leaving us responsible for managing the final mile, which is often the most resource-intensive part of the delivery process.”
FedEx/UPS continuing fuel surcharge increases
FedEx and UPS have both increased their fuel surcharge calculations within the last month, increasing average costs per package despite a low-demand parcel market.
The fees are updated weekly, and are based on the average diesel fuel price released by the U.S. Energy Information Administration.
Recently, surcharges have risen at a higher rate than the actual fuel prices, suggesting the carriers are using them strategically to boost margins.?
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What is Comparative On Time %?
Comparative On Time % refers to the percentage of your packages that are delivered on time, compared to similar shippers.
Why is tracking Comparative On Time % important?
Your packages making it on time is imperative to customer satisfaction. Knowing your own On Time % is a good starting point, but to truly understand how you’re performing, it is important to know how you compare to others in your industry. With this information you can also make decisions on if changing services or even carriers would be beneficial.
2024 FedEx & UPS Demand (Peak Season) Surcharge Guide?
FedEx and UPS shared their demand, previously known as “peak season”, surcharges even earlier this year than last. They were on top of their game, with UPS releasing rates on July 15th and FedEx a month later on August 15th.?
This is a good thing for shippers, as it gives you more time to prepare to end Q4 with a bang!?
To help you make the most of this opportunity, Sifted has put together a detailed guide. Check out our article for a comprehensive breakdown.?
Connect With Sifted at PARCEL Forum?
Are you at PARCEL Forum ‘24??
Several members of our team have arrived and we can’t wait to meet you!?
Visit our booth (#706) to see how SiftedAI can help you achieve 100% parcel spend optimization.?
For more information about what to expect from Sifted at this year's conference, check out our roundup blog.