2009 Parcel Rate Increase

This article comes from the January 2009 Supply Chain Link newsletter.

The largest price increase* in the history of small shipping has been implemented. Here is a summary of the increases.

Carrier	Ground	Air	International
UPS	5.9%	4.9%	4.9%
FedEx	4.9%	4.9%	4.9%

* These rates include a 2 percent base rate increase, which is reduced in the fuel surcharge.

Actual Parcel Rate Increases

The advertised increases by the carriers do not match the actual increases. The following two charts show the actual increases in a year-over-year base-rate analysis.

Actual Next Day Rate Increases

	Zone 2	Zone 3	Zone 4	Zone 5	Zone 6	Zone 7	Zone 8
Letter	5.32%	6.36%	7.75%	7.87%	7.90%	8.56%	8.50%
1	6.33%	7.94%	7.96%	8.00%	7.99%	8.41%	8.46%
2	5.14%	7.69%	8.05%	7.83%	7.88%	8.42%	8.48%
3	6.41%	7.91%	8.01%	8.03%	7.97%	8.38%	8.45%
4	6.43%	8.13%	7.93%	7.95%	7.86%	8.47%	8.47%
5	5.12%	7.90%	7.89%	7.84%	7.98%	8.54%	8.44%
6	6.26%	7.71%	7.99%	8.01%	7.94%	8.44%	8.36%
7	6.40%	7.83%	7.89%	7.95%	7.95%	8.46%	8.43%
8	6.29%	8.10%	7.93%	7.93%	8.04%	8.48%	8.49%
9	5.31%	7.89%	7.99%	7.97%	7.97%	8.42%	8.50%
10	5.30%	3.42%	7.90%	7.99%	7.97%	8.47%	8.45%

Actual Ground Rate Increases

	Zone 2	Zone 3	Zone 4	Zone 5	Zone 6	Zone 7	Zone 8
1	8.81%	8.80%	8.07%	7.74%	7.77%	7.85%	7.87%
2	8.90%	8.81%	7.82%	8.07%	7.89%	7.89%	7.86%
3	8.82%	8.84%	7.82%	7.75%	7.73%	7.65%	7.54%
4	8.80%	8.94%	7.82%	7.79%	7.47%	7.55%	7.66%
5	8.82%	8.80%	7.99%	7.44%	7.45%	7.62%	7.49%
6	8.54%	8.51%	7.85%	7.06%	6.33%	6.47%	6.85%
7	8.51%	8.44%	7.50%	6.36%	5.83%	5.83%	5.66%
8	8.57%	8.35%	7.47%	5.91%	5.93%	5.84%	5.68%
9	8.52%	8.47%	7.15%	5.91%	5.93%	5.79%	5.67%
10	8.41%	8.41%	6.68%	5.89%	5.95%	5.76%	5.62%

Accessorial fees also are changing significantly in 2009, as shown below.

Residential Surcharge	4.3%
Declared Value	8.3%
Additional Handling Fee	15.4%
Saturday Pickup Fee	20%
Saturday Delivery Fee	20%
Address Correction (ground)	33%
Delivery Area Surcharge	6.6%
Extended Delivery Area Surcharge	23%