What rate hikes at UPS will mean for you

November 23, 2009 – 10:35 am – No Comment

UPS

The shipping and delivery market is not doing well right now. Companies are facing bigger losses and have to do something about it because they simply cannot lay off any more people.

So now, these companies are going to start raising rates and it’s going to begin with the world’s biggest shipper: UPS.

In 2010, the company has announced that it plans to hike rates an average of almost 5% for ground packages and nearly 7% for air packages. If you thought shipping something “express” was expensive before…it just got even worse.

UPS isn’t the only company to step forward and say that it plans on increasing rates, FedEx has also said that it plans on raising rates by an average of 6% starting in January. However, FedEx didn’t give specifics because it raises rates every year by about 6%.

The only company that has said that it won’t be raising rates so far is the USPS which is odd considering how many billions of dollars it has lost in the past year. Regardless, it has announced that the price of a stamp won’t be going up.

This means that if you want to ship something, it will obviously start to cost you more. At an increase of 7%, the shipping increase is now more expensive than tax in my state. I agree that companies should raise their rates, however. It isn’t like no one knew that they would be raising rates.

At one point, online shopping was cheap because not only were items less expensive than in brick and mortar stores, but because many stores didn’t charge tax and shipping was relatively inexpensive, it was just simple to shop online. There are now stores that have decided to begin charging tax on items and shipping has gotten outrageous. On small items, a $10 shipping charge is a bit much. Recently I purchased a few makeup items and the shipping was actually more expensive than the order!