FedEx, UPS take different roads on new parcel surcharges

[cheryl]

FedEx, UPS take different roads on new parcel surcharges - Freight Waves

UPS lowers residential surcharges; FedEx ends them entirely

For decades, an immutable law of business has been that whenever FedEx Corp. changed its pricing or related terms and conditions, rival UPS Inc. would soon follow suit. Or vice versa. However, a few changes to peak-season delivery surcharges that the two carriers announced within a week of each other signal that the long-held duopoly bond continues to fray.

There are still similarities: Both carriers will reduce their levies to $3 per package to cover the “additional handling” of shipments that are difficult to manage. UPS will reduce its per-package charge on oversize shipments to $31.45 per piece from $50, not far from FedEx’s revised charge to $30 from $52.50. The effective date of the new UPS levies is Jan. 17, just one day before the revised FedEx surcharges kick in. All the revised charges will stay in effect until further notice, both carriers have said.

But there are differences. For example, UPS, which disclosed its surcharges in a website post yesterday, will maintain its U.S. ground residential surcharge but cut it to 30 cents per piece from surcharge tiers of $1 to $3 per package that expire Jan. 16. FedEx’s residential delivery surcharges, which ranged from $1 to $5 a parcel and were imposed Nov. 2, will disappear entirely on Jan. 17.

 

[zubenelgenubi]

Man! I was getting used to not delivering couches and deep freezers. Oh well, easy come, easy go.

 

[Est.1998]

UPS must plan on keeping those pvd's

 

[zubenelgenubi]

UPS must plan on keeping those pvd's

I've said this before, if UPS wants to grow in a significant way, we need to get back to our roots and start doing the store/restaurant pickup delivery stuff, along the lines of door dash, uber eats, etc. PVD's would be best suited for that. They could start it as a separate business unit, and negotiate terms with the Union to get that going. Then, during the next contract negotiations, negotiate terms for the other business units (Small Package and Freight) to be able to be more flexible with moving employees around to suit the needs of the market more flexibly (think using the door dash type pvd's and freight in small package during peak, etc.), then I could see UPS do really well domestically. Maybe it would be too complicated, but we need to be able to compete in the changing market place while protecting, and hopefully creating new, good jobs.

So far I have made a number of suggestions on here that the company seems to have subsequently implemented in some fashion. I'd be interested to see how the pvd thing evolves.

 

[zubenelgenubi]

And just like that small package becomes a furniture delivery service again.

 

[IVE GOTTA PACKAGE 4U]

I've said this before, if UPS wants to grow in a significant way, we need to get back to our roots and start doing the store/restaurant pickup delivery stuff, along the lines of door dash, uber eats, etc. PVD's would be best suited for that. They could start it as a separate business unit, and negotiate terms with the Union to get that going. Then, during the next contract negotiations, negotiate terms for the other business units (Small Package and Freight) to be able to be more flexible with moving employees around to suit the needs of the market more flexibly (think using the door dash type pvd's and freight in small package during peak, etc.), then I could see UPS do really well domestically. Maybe it would be too complicated, but we need to be able to compete in the changing market place while protecting, and hopefully creating new, good jobs.

So far I have made a number of suggestions on here that the company seems to have subsequently implemented in some fashion. I'd be interested to see how the pvd thing evolves.

It's bad enough we have 22.4 jobs now you want to scab out all of our good jobs while our company is making record profits
Seriously??

 

[zubenelgenubi]

It's bad enough we have 22.4 jobs now you want to scab out all of our good jobs while our company is making record profits
Seriously??

Did you actually read what I wrote? Where did I advocate for the use on non-union workers, at all, let alone in the "good jobs"? I assume that people see "pvd" and immediately think non-union. They are, at this point, seasonal drivers like ones that drive brown PC's and/or rentals, they just happen to drive personal vehicles. If your local allows them to work without joining the union, that's something you should try to get fixed.

My post was specifically about ways in which UPS can expand into related markets. Not having PVD's take current jobs, and I said they need to negotiate terms with the union so that employees can move around different work units as the need arises. All UPS employees, all Teamsters. Better than the current system of off the street seasonals. It's just a spitball idea, really no need to get worked up about it.