By Dave Sullivan, Senior Consultant, Professional Services with Alex Rose.
Fill up your car lately? How much did you pay? $40? $50? $60? All over the country, the price of fuel is skyrocketing. Some analysts are predicting that the national average will be above $5 a gallon before Memorial Day. There is a perfect storm brewing, with closing refineries, Wall Street speculation, and Middle-Eastern turmoil causing the price of fuel — and especially diesel — to go through the roof.
This shouldn’t come as too much of a surprise; a similar scenario has played out over the last few summers. Like many shippers, you may have resigned yourself to the idea that, like death and taxes, fuel increases are just another cost you will have absorb. If you’re smart, however, you will act to mitigate fuel cost increases in other ways.
Here are five fundamental rules that every shipper should follow: Read more →
FedEx and UPS have unveiled next year’s rate changes both of which will go into effect on January 2, 2012. With an average increase of 5.9% across U.S., U.S. export and U.S. import services, the FedEx hike is greater than the last two years (3.9% in 2011 and 4.9% in 2010). UPS has also raised prices, in their case, by an average of 6.5%. While both FedEx and UPS claim that decreases in fuel surcharges will help offset the increases, our team of BirdDog Parcel Experts aren’t so sure. Despite the PR around this decrease, the end result remains a painful increase in shipping charges.
Which Services Are Being Raised?
While FedEx and UPS are keen to promote their rate increases as 5.9% and 6.5% respectively, those, of course, are just an average. A closer look at the numbers reveals that, for both carriers, individual services have been selected to take a bigger hit compared to the others. To begin, let’s look at what’s taking the hardest hits and what is being spared from the hefty hikes. Read more →