UPS recently announced a 4.9% rate increase for 2017 and now FedEx plans to raise rates by 3.9% starting in January. Rates for FedEx Ground and Home Delivery will increase by 4.9%.
An excerpt from Investopedia’s coverage on the rate increase says:
“Oil falls and shipping rates rise. Unfortunately this is the reality we live in, where both Fedex Corp (FDX) and United Parcel Service Inc (UPS) charging more for delivery in a period of low gas prices. Fedex announced their rate increases yesterday after market close; UPS announced rate increases earlier this month. The increases, which were expected, will take effect in January 2017.”
“Fortune reports that the price of shipping packages has grown by 79.2% for ground deliveries and 95.5% for air deliveries this past decade. With e-commerce sales growing each year and expected to account for almost 13% of all retail sales by 2019, the rise in shipping costs should have consumers worried.”
Read Investopedia’s full take on the rate increase here.
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