If you are one of the people who usually consume products online, you should prepare yourself because, probably, the costs will increase next year, since the rates of the parcel services are increasing their prices, without a doubt this is not a good news for your personal finances.
Yesterday, FedEx announced publicly that it will raise shipping rates in 5.9% next year on most of your services. UPS, a competing brand, will do the same, making it the first time in eight years that both parcel companies shoot annual increases, previously representing 4.9%.
UPS will soon release the figure of the increase in your rates for 2022. According to Transportation Insight LLC, a logistics and supply chain management company, the two companies, being competitors, have moved hand in hand when it comes to price increases annually from at least 2010.
The increase in rates has to do with the enormous demand that exists in the parcel delivery sector thanks to the fact that more and more Americans are consuming products online. This trend skyrocketed last year in the context of the pandemic. This situation has a high impact on supply chains not only in the country, but throughout the world.
The saturation situation so that packages can be reached on time to their recipients are elements that that the increases soar above their annual rate, so it is not a surprise that FedEx and UPS make this determination, which from will then have an impact on the consumer .
According to Transportation Insight LLC, some carriers negotiated clauses in contracts in which their annual rate increase would be around 2.5% to 3%. In recent weeks, some large carriers have received contract renewals that would limit their annual increase to 5%.
In addition, in its announcement, FedEx added that it will increase the fuel surcharge that applies to all shipments from November 1 . The company said the tight job market and the change in shipping volume have required more frequent changes to its network and repositioning of planes, vehicles and others. equipment, increasing its total fuel use.
Labor cost pressure and other inflation of the supply chain as a whole could lead to small, medium or large retailers re-evaluate your prices that already include, in most cases, the cost of shipping. So under this situation you should prepare for the increases if you want to continue shopping online.
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