Ever-increasing demand for small parcel services has placed FedEx & UPS in charge; leaving large shippers scrambling to find alternatives to control transportation costs. In the last two years alone, rates have grown an average of 4.9%, but that alone does not tell the whole story of skyrocketing package costs.
The introduction of newly defined peak surcharges combined with the increase in surcharge categories associated with residential deliveries are at the heart of budget-busting costs. Along with residential surcharges, there are the additional delivery surcharges associated with specific zip codes that have been defined as “rural”. Less transparent is the fact that more zip codes than ever are subject to this fee from both UPS and FedEx. In 2021, this charge category will apply to 38% of the zips in the US.
This leaves one to ponder, are we truly in unprecedented times? The link below to Supply Chain Quarterly’s article provides some fascinating historical context.