FedEx Corp.’s recent decision to incorporate package size in the pricing of its ground service will result in a significant boost in shipping costs – but it could also open up competitive opportunities for the U.S. Postal Service.
FedEx FDX -0.32% surprised shippers and industry observers with the announcement that it will adopt dimensional weight pricing for all ground shipments as of Jan. 1, 2015. Up to now, it has limited that formula to packages measuring three cubic feet or greater.
“Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume – the amount of space a package occupies in relation to its actual weight,” FedEx said.
The move, which mirrors the way in which FedEx prices its expedited services, will reportedly affect a third of the company’s ground shipments. The price of moving a box with 12-inch sides in a short zone, for example, will rise by about 30 percent.
Industry observers expect UPS to follow suit, although the company has yet to make an announcement to that effect.
FedEx Hike in Ground Rates Could Boost Business for U.S. Postal Service
I bet it won’t, they will just drop ship more to us (USPS) and still make $$$!
Let’s see if the Postal Service marketing think tank
can exploit this advantage. It seems like a no brainer
to promptly get a comparative overview to the television
and radio markets along with billboard advertisement, but
we can never be assured of logic when it comes to the P.O.
It could, but once USPS customers see the lousy mgmt imposed piss poor service, it won’
Maybe this price change will allow them to quit hauling coal, or whatever that black stuff is on most of their packages delivered to my place , at night ?