For the 2018 peak shipping season, FedEx and UPS aren’t deviating far from the strategy they established for 2017’s holiday season. In fact, this year expenses for shippers will go up, with some of the increases particularly audacious.
With most UPS shippers a few invoice cycles into this new normal since the Shipping Charge Correction Audit Fee went into effect June 4, the actual impact has come into focus. For nearly 54% of businesses, the results aren’t pretty.
FedEx is shipping more packages and charging more than ever to do it. FedEx announced its fiscal revenue was up 7.9% at $65.5 billion over FY 2017, and revenue was up 9.1% at $17.3 billion for the fourth quarter. It was another record earnings report, a year-by-year trend we’re getting used to.
UPS aims to strengthen retailer relationships while Amazon has reportedly been banning shoppers for making too many returns. FedEx is betting Blockchain will create a transparent, secure, and streamlined logistics industry.
The VeriShip Intelligence Platform (VIP) enjoyed record-breaking, year-over-year gains in time on site (a 377 percent increase) and total users (an increase of 271 percent) during the first four months of 2018.
UPS announced its rate increases, which are effective Dec. 24, 2017. As a shipper, you need to understand the true impact on your business because the announced net average increase of 4.9% doesn’t tell the whole story.