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Jim Meade / Iowa City
Senior Advisor

FedEx Hints 5% Price Rise

Heard on the tube that FedEx is thinking about a 5% rate increase after the first of the year and an unspecified surcharge on large packages starting in November (just in time for Christmas).

 

I've been doing more and more business that involves FedEx, UPS, Speedy and USPS.  Freight rates are already an issue of interest n each purchase.

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8 Replies
idalivered
Advisor

Re: FedEx Hints 5% Price Rise

It sure would not be caused by higher fuel costs. Somehow , ethanol MUST be a t fault! Or obamacare.

 

Truthfully, i hope the employees get a raise as part of the increase.

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BA Deere
Honored Advisor

Re: FedEx Hints 5% Price Rise

It seems companies use gimicks to offer "free shipping" just as example Shoup gives free shipping on orders over $200.  Companies like that might have to jack their prices across the board 1/2% or offer the free shipping on orders over $300 or just eat that extra shipping.   It`s funny some things you buy on Ebay might cost $5 but if you look they have about that much in their shipping...how do they do it? ...Volume   Smiley Very Happy 

 

But these shipping companies do terrific work, alot of times i`ll order from Shoup and it`s here the next day, if the implement dealer ordered it for you it`d take longer in some cases.

 

Then Iowa is always talking about "taxing internet sales" to level the playing field for mainstreet businesses.

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k-289
Senior Advisor

Re: FedEx Hints 5% Price Rise

Fed  X  has an interesting ''' employee ''''   - '''' independant  contractor ''''  agreements  as far as wage settlements --- All of the hype about Amazon  etc. they carriers will push the shipping charges as high as the demand will allow ---

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bruce MN
Advisor

Re: FedEx Hints 5% Price Rise

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Jim Meade / Iowa City
Senior Advisor

Re: FedEx Hints 5% Price Rise

It's a no-brainer to see why Amazon would like to use UAS (drones) to deliver packages.  They'd be able to by-pass delivery systems and probably hold down labor costs at the same time.  They'd have to be able to use autonomous UAS to do it and that may be a few years away, but it's all to do with shipping costs.

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k-289
Senior Advisor

Re: FedEx Hints 5% Price Rise

Good points  Jim  - it will be interesting to see what  '' physical  address ''  destination they will adhear to in high density populated areas with a drone system --- 

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sw363535
Honored Advisor

Re: FedEx Hints 5% Price Rise

Yep eventually we won't need us.

Drones deliver and we are all home to recieve,  especially former delivery drivers...

 

But we love the technology....  It has been eliminating jobs now for 40+ years.  

 

There should be degrees in the field of "drone accident investigation" starting as we type....

New on CBS--coming this January DAI- Des Moines.

 

How to resusitate a drone ------- training in Drone theropy and Drone adoption will follow..

 

Can't wait for Drone Massage  and  eventually a Drone road kill

 

By the way Jim did they ever get Drone Air Space defined?

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perspec
Veteran Contributor

Re: FedEx Hints 5% Price Rise

Drone delivery is intrigueing but a farce.  5 or 10% of homes get a package every day(my experience) and climbing.

Rather throw 200 packages on a truck than hire someone on the dock-port figuring destinations and reattaching each package.  No labor advantage.  There is also investment and fuel.

Have to coordinate delivery with owner so the dog don't eat it.  Phone time!

Might run into the girl scout going up the sidewalk.

May hit that new powerline or tree just planted.

Most would just want to squash that mosquito!

Bad fad.

 

 

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