Just in front of its' upcoming earnings release, FedEx announced yesterday that it will raise shipping rates at the fastest pace in more than 12 years (see "Shopping Online is Getting More Expensive" for perspectives from the WSJ) . The average rate increase of 5.9% breaks a long-time 4.9% yearly trend that FedEx and UPS have typically managed in lock-step. With record ecommerce volumes, labor challenges, and persistent inflation, the faster than usual rate increases are not entirely unexpected, but still a challenge to many shippers struggling with costs.
With pricing power shifted to UPS and FedEx, many shippers could benefit from a review of their parcel shipping cost structure and operations performance. Read on for some ideas on where to start.