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FedEx and UPS to Raise Small Package Rates for 2011

Date: 11/11/10

Oberlin, Ohio, November 11, 2010—The SGMA Discount Shipping Program, managed by PartnerShip, today announced that FedEx Corp. (NYSE: FDX) and UPS (NYSE: UPS) will increase envelope and small package shipping rates for 2011.

Effective January 3, 2011, the cost to ship an overnight envelope with Memphis-based FedEx Express will increase by a net average of 3.9%. The full average rate increase of 5.9% will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by 2%. Pricing changes for FedEx Ground and FedEx SmartPost for calendar year 2011 will be announced later this year.

Also effective January 3, 2011, the cost to ship with Atlanta-based UPS ground and express services will increase by a net average 4.9% for U.S. domestic and U.S. export services. The rate increase for UPS ground shipments is achieved through a 5.9% increase in the base rate, less a 1% reduction to the index-based ground fuel surcharge. The rate increase for UPS air express and international shipments is based on a 6.9% increase in the base rate, less a 2% reduction to the index-based air and international fuel surcharge.

Dimensional Weight Calculation Change
In addition, both FedEx and UPS will implement a change to the dimensional weight volumetric divisor, from 194 to 166 for U.S. domestic air and ground services. The DIM factor has also changed from 166 to 139 for international shipments. The lower DIM factors may have a substantial impact in the form of higher shipping rates for companies whose packages are subject to dimensional weighting, such as retailers and companies that ship lower density packages.

Details of dimensional weight charges and additional changes that will be made to other FedEx Express surcharges can be found at www.fedex.com/us/2011rates. Updated UPS rate and service information can be found on www.ups.com/rates. On Jan. 3, 2011, when the new rates take effect, customers can download the 2011 Rate and Service Guide.

How SGMA Can Lighten the Load
The SGMA Discount Shipping Program, managed by PartnerShip, was started to help SGMA Members save on all of their shipping expenses.  The program discounts continue to help small- to medium-sized businesses save on their small package, express, and LTL shipping.  The discounts are vital to help counter the annual carrier rate increases, allowing members to recoup at least a portion of their shipping dollar that would otherwise be lost.

Because of your membership in SGMA, PartnerShip offers you its specialized service of helping you understand the complexity of shipping rates, accessorial charges, dimensional weighting and other shipping intricacies.  PartnerShip will consult with you to help you get the most for your shipping dollar.  Call PartnerShip today at 800-599-2902 to speak with a shipping logistics professional for expert advice, or visit www.PartnerShip.com/77SGMA for more information on the SGMA Discount Shipping Program.

About PartnerShip
Oberlin, Ohio-based PartnerShip, which developed and manages the SGMA Discount Shipping Program, is a leading freight management company that provides shipping solutions to small- and medium-sized businesses nationwide. PartnerShip leverages its relationships with over 17,000 customers to provide businesses of all sizes the exceptional savings typically reserved for large-volume shippers. 800-599-2902 www.PartnerShip.com
 

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