I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals. It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
UPS announced its 2025 GRI of 5.9%. However, unlike FedEx, UPS’ 2025 GRI actually begins Dec. 23 to catch those last-minute shippers ahead of the Christmas Day holiday. In years past, UPS’ GRI would become effective after Christmas Day. FedEx’s 2025 GRI goes into effect Jan 6.
Also, beginning Oct 21, more changes to zip codes. The list of ZIP codes to which Area Surcharges apply will change and the list of ZIP codes aligned to certain Zones will change.
For invoices paid via credit card on or after October 26, 2024, an additional surcharge equal to 2% of the total amount paid will apply.
Supply Chain Dive: UPS prepares 5.9% rate increase starting at peak season’s end
Per another Supply Chain Dive: According to Paul Yaussy, Shipware’s director of parcel consulting, 25% of parcel shipping spend for Shipware clients used to go toward surcharges, but that number is typically 35% or 40% today. Steven Bergan, president of delivery provider GLS US, said FedEx and UPS surcharges have incentivized shippers to explore alternatives.
Be sure to check out Supply Chain Dive’s Max Garland LinkedIn post – It’s creating some interesting comments:
Holiday Season
- The US Postal Service Ready to Deliver for 2024 Holiday Season – “The Postal Service’s historic transformation — made possible by our Delivering for America plan — has allowed us to realize more package processing capacity than ever before,” said Postmaster General and CEO Louis DeJoy. “Our operational, transportation and delivery processes have never been more finely tuned, and I am fully confident in our ability to once again handle the peak holiday season surge. We are strongly positioned to deliver exceptional, affordable service to the American people during the holidays and beyond.”
- US carriers’ domestic holiday shipping deadlines for 2024
Tech
- Auctane Introduces FedEx Platform Account Program to Offer FedEx Shipping Services to Millions of Businesses
Other News
- A GAO report found that as online shopping increases, so do concerns about delivery and warehouse workers’safety. The report found that warehouse and package delivery workers had the highest estimated rate of serious injury among private sector industries. On average, almost four in 100 full-time workers experienced serious injury in 2022.
- Allbirds Will Sell Its Shoes Via Uber Eats
Amazon
- Amazon opens last-mile distribution facility in Paducah
- Amazon to open ‘last-mile’ delivery warehousein Columbus area
- Amazon makes it official as it launches Amazon Air Cargo– Selling space on its planes to 3rd parties.
That’s it for now. Comments are always welcome. Reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. Stay tuned for the next newsletter on Oct 16. Don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices. In addition, if you like what you’re reading, sign up to receive additional insights and analysis via emails twice a month – DM me for more info.
-Jay