UPS Announces Rate Increase
On Friday, UPS added a 4.9 percent rate hike for consumers and businesses in the U.S., Canada and Puerto Rico who are shipping items weighing more than 150 pounds. Overall, U.S. air and ground shipping and international shipping will increase by 4.9 percent starting Dec. 26. UPS has continually raised its rates 3 percent to 5 percent over the last few years. Fortune reports the price of shipping packages has skyrocketed over the past decade, with the cost of ground shipping for both UPS and FedEx having grown 72.9 percent. However, even with the rate increase, UPS remains one of the best shipping options, and recently introduced next-day shipping to 117 companies across the globe.
Total Retail's Take: Enterprise retailers, including Amazon.com, usually are able to negotiate deals to get out of paying steep shipping fees. However, for individuals and small businesses, this latest rate increase could be a nightmare, especially with the busy holiday season coming up. Not to mention, SMBs are under more pressure to compete with retailers by offering free shipping or next-day shipping.