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2009 Parcel Rate Increase

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%

GENCO Supply Chain Solutions network analysis helps customers assess their current supply chain network and design an integrated solution to provide the best service at the lowest cost. Effective collection of supply chain data can allow companies to reduce their total supply chain cost through analysis and continuous improvement.

Network Analysis at Work Engineers identifying potential supply chain savings

GENCO Supply Chain Solutions works with its customers to create supply chain plans, which take into account customer growth, current and future warehouse locations, sizing and handling characteristics, transportation costs and business rules about product positioning and duplication. Using a proprietary network optimization technology, GENCO Supply Chain Solutions develops supply chain models which identify options that optimize the network and maximize total supply chain expenditures based on each customer's specific business rules and constraints. Throughout the process, GENCO Supply Chain Solutions works closely with customers to ensure that supply chain optimization decisions provide results that can be implemented.