The coming rate increases in ground service by FedEx and UPS have businesses scrutinizing every aspect of their parcel-shipping programs.
Both companies are preparing to introduce dimensional weight pricing for all parcels in U.S. ground service — UPS on Dec. 29, 2014, and FedEx FDX +0.47% on Jan. 1, 2015. The change means that the cost of shipping any package will be based in part on the item’s volume — the amount of space it takes up on a truck. Up to now, the two carriers have limited the use of that formula to domestic ground packages measuring three cubic feet or greater, and for air and express shipments.
The likeliest benefactor is the U.S. Postal Service, whose Priority Mail option will continue to charge a flat rate for domestic shipments of up to 70 pounds. The Postal Service has recently undertaken a major marketing push to draw business away from FedEx and UPS, providing tracking capability and free insurance, and partnering with leading e-commerce players such as Amazon.com to offer Sunday delivery in major cities.
Postal service wants to get rid of their own trucks, so that will mess that up service wise, shoot themselves in the foot, once again
No there not