FedEx “One Rate Box” debuts in Baltimore and other markets
FedEx has released a trial program for a flat rate box in Baltimore, Miami, Memphis and Portland. The program was announced to FedEx shippers in these regions on December 5, 2011. FedEx was careful to brand the service as One Rate Box so as not to confuse the marketplace with the US Postal Service offering of Flat Rate Box. The US Postal service has spend a considerable amount of advertising dollars over the past few years embedding the slogan "Flat Rate Box by the US Postal Service; if it fits, it ships...for one flat rate".
The program consists of the following:
- $15.00 covers the price of the box and shipping fees from any US destination to any other US destination
- Service is FedEx Express Saver (3 day express) and has a delivery commitment of 2-3 business days
- Two box sizes are offered: 12 x 9 x 6 (648 cubic inches) and 18 x 13 x 3 (702 cubic inches)
- No surcharges, no additional charges for fuel
- 12 x 12 x 5 1/2 (792 cubic inches) for $14.95 . Also available at this rate: 24 x 11 x 3
- 13 x 12 x 3 (468 cubic inches) for $10.95. Also available at this rate: 11 x 8 1/2 x 5 1/2
- 5 5/8 x 5 3/8 x 1 5/8 for $5.20
As you can see, trying to figure out in which case you come out ahead and which case you lose is not easy to do. You would need a TMS or similar method of quickly determining which shipments should use the Box. A shipper that sends just one type of item could, probably figure out quickly if the Box makes a difference and execute on that knowledge.
Over 80 containers overboard in New Zealand (video)
Over 80 individual containers have now fallen from the vessel Rena off the coast of New Zealand. The ship hit a reef in the Bay of Plenty on October 5, 2011 leaving it precariously balanced with a large fracture in the side.
A narration-less video posted to YouTube shows shipping containers leaning toward the ocean; some magically being held in place against gravity and physics.
The issue for merchants with goods aboard will become the mounting losses beyond the goods. The maritime legal principal known as the general average places liability on all shippers aboard to share in the cost of containers that are lost when jettisoned overboard. However, the general average has only been invoked when the vessel's crew tosses freight overboard in an attempt to stabilize the ship or during a natural incident. Since this incident may have been negligence, it is unclear if this provision can be invoked.
See the video:
You may be part of a class action lawsuit if you used UPS
The following text is from the class action lawsuit site of Barber Auto Sales v. UPS. If you feel you are part of this class, please visit the website for more information. If you are a UPS shipper, you may have received an e-mail notification about the same:
NOTICE OF CLASS ACTION SETTLEMENT
A Settlement has been reached in a class action lawsuit about the way United Parcel Service, Inc. (“UPS”) audited the dimensions of packages when UPS’s measurements differed from those provided by customers, resulting in a higher charge to customers.
THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY.
The lawsuit claims that UPS customers were overcharged for shipping packages. When you ship a package with UPS, UPS may calculate shipping charges based on package measurements (height, length, and width) as well as weight. UPS, in its customer contract, reserves the right to audit package measurements to make sure they are correct, and adjust shipping charges if the customer’s measurements are not correct. For some shipments between two U.S. locations on or after May 15, 2006, and August 29, 2011, UPS adjusted some package measurements based on its own measurements, resulting in a higher charge to customers. The Plaintiff contends that UPS’s measurements were inaccurate and that it improperly increased certain customer’s shipping charges. UPS maintains it is entitled to audit package measurements, its measurements were accurate, and its adjustments were appropriate.
UPS launches their own ‘FedEx Home Delivery’ with MyChoice
UPS My Choice, a premium residential delivery program allowing for many of the features already offered by competitor FedEx's Home Delivery service launches today.
MyChoice allows residential package receivers to take control of the delivery one day before the estimated delivery date to set the delivery time window. This is not only an advantage to the recipient, but also to UPS and the sender who frequently face multiple delivery attempts for residential packages; especially those requiring a signature.
UPS is marketing the program as a membership opt-in with two levels as follows from the UPS press release:
Customers can choose between two levels of membership. UPS My Choice members will receive phone, e-mail or text alerts notifying them a day in advance of when packages will arrive and providing a four-hour window for the delivery. They also will have the option to electronically authorize release of packages that require a signature and, for a $5 transaction fee, to reroute a package to another delivery address or have it delivered to the nearest The UPS Storelocation.
UPS My Choice Premium Membership, available for a $40 annual subscription, provides all the benefits of a regular UPS My Choice membership but in addition, members gain access to an online delivery calendar that shows the status of UPS home deliveries. Premium members also are offered a two-hour confirmed delivery window. A $5 transaction fee is charged only upon successful delivery of the package within the two-hour commitment.
More information and membership registration available at the UPS MyChoice website.
Is sustainability important in your package carrier selection?
Duetshe Post DHL has ranked high in the Dow Jones Sustainability World and Europe Indicies as well as in FTSE4 Good Index.
With a score of 99 out of 100 for environmental criteria, DP DHL again made the rankings. The annual index is a survey of sustainability efforts. In the 2011 index, over 1,400 companies were ranked. DP DHL, who also scored high in 2010, improved their numbers in the 2011 rankings.
The full report and other related material is available here.
Sept 24th fall of stock market signals price increases may be coming
Bloomberg reported the following the afternoon of September 24, 2011 after the stock market suffered a huge loss:
FedEx tumbled 12 percent, the most since March 2009, to $67.30. The world’s biggest cargo airline cut its full-year profit forecast amid declining demand in the U.S. and Asia.
FedEx, an economic bellwether that delivers goods ranging from mobile devices to financial documents, saw U.S. shipments fall for the second quarter in a row as the economy grew at a lower rate than it estimated. Demand dropped for Asian technology products, especially from China, hurting the express international division.
FedEx and UPS have been pursuing a revenue growth strategy by "package yield" -- a method of analyzing their costs and desired profits by key performance indicators at the package level -- shippers may see continued increases in their international rates from FedEx and UPS. Until recently, the international growth of package volume for both companies was contributing to their revenue numbers.
While this news isn't was shippers want to hear, we remind our readers that our international program can provide immediate price relief and an upgrade in service. If interested, read more here.
CNBC video: FedEx, UPS sued for antitrust violations
Although we had previously reported about the lawsuit filed by AFMS against FedEx and UPS for antitrust violations, we continue to receive requests from our prospects and clients about the status of this case.
CNBC reported the news shortly after the initial filing of the case. Since then, FedEx and UPS attempted (and were successful) in having the case dismissed. However, the case was re-filed and it has been confirmed that the US Department of Justice is conducting an investigation.
The CNBC video discusses how FedEx and UPS will not confirm that the DOJ investigation is formal, informal or even underway. However, FedEx did confirm the investigation in their 1Q 2011 SEC filing. This was also noted in their July, 2011 10-K filing with the SEC (item 3, page 25). Similarly, UPS filed form 10-Q with the SEC in which it confirms the DOJ investigation and the active nature of the suit.
Subscribe to this blog or our Facebook page for updates on this matter.
Save Money Immediately on International Shipping
Want the rates now?
Getting started is easy:
Call us at 866-200-7283. Dial any of the following extensions to receive immediate assistance from the top executives here (or send us an e-mail by clicking the name below):
Richard Palarea, CEO, extension 201
Christopher Steer, CSO, extension 304
Jim Ries, Sr. Logistics Consultant, extension 310
You're reading this for one of the following reasons:
1. You scanned a QR code in one of our mailers or advertisements
2. You heard about our significantly discounted international shipping rates from someone.
3. Regardless of how you arrived here, you want to reduce the amount you spend on international shipping.
Before we go any further, this offer is not valid if you currently use DHL Express for the majority of your international parcel (small package) shipping.
So here's the program...Great Rates, No Rules, Instant Savings [more at www.getinstantsaver.com]
We hold an international shipping agreement with DHL Express that allows us to extend these rates to you. This agreement was the result of one of our client projects years ago and it was a huge success; saving the client $8.5 million over three years.
The rates are so low we are prohibited from publishing the discount here. We are not a reseller...you will receive the same discount stated in our contract with DHL Express. Examples of how aggressive these rates are appear further down this page.
As far as we know, this is the only program of its kind. Until now, your only options for discount were:
1. Try to negotiate them on your own with FedEx or UPS. Although you might be successful in achieving some level of discount, your discounts are probably somewhere between 50% and 65%; far from the discount we offer. Furthermore, obtaining any significant discount with FedEx or UPS requires you to commit a minimum amount of package weekly revenue and volume with them.
2. Work with a reseller of UPS or DHL Express. Resellers typically have discounts to 65% and need to reduce that discount when they offer you the rates so that they can retain part of it for their own profit. That means resellers have a limited marketplace to sell to...only shippers that couldn't get a 65% discount on their own. They can vary the markup to you without much accountability.
So how do we do it?
We came at this a different way. We already had the rates negotiated from a successful project. We already had a different relationship with DHL Express that wasn't about price. We have a different model than the resellers do, which is a marketplace that UPS and DHL Express need to exercise some control over so that they don't find themselves competing directly with their resellers.
Our approach is to split the savings you realize on each shipment with you.
We also do not require you to sign a long-term contract or commit any minimum revenue to get the rates. This is a pay-per-use program and you can opt out or cancel at any time.
We are so confident that our approach is unique and our rates are valuable that we are offering your first three shipments without the percentage of savings fee. You just pay for the shipping charges. This is a great way to try out the program.
Supported at the highest levels within DHL Express
Because our program has the support of senior executives within DHL Express, you can be confident that your international package delivery needs will be exceeded on every shipment. Neither FedEx or UPS deliver to as many international destinations as DHL Express or within a 2-day transit time. Whether shipment tracking, invoicing, computers or supplies, we are connected with people at DHL Express that make decisions, not excuses...and can get it done.
How do the rates compare?
For the basis of a quick comparison, I have detailed three export shipments to different parts of the world and included the FedEx and UPS list rates, along with our DHL Express rate. You be the judge:
| Destination | FedEx Rate | UPS Rate | Our DHL Rate |
| China | $215.17 | $214.23 | $41.27 |
| United Kingdom | $193.55 | $192.70 | $35.56 |
| India | $227.01 | $225.11 | $42.86 |
To recap:
The program features discounted rates for export (outbound from the US), import shipments (inbound to the US) as well as shipments originating and terminating outside of the US (foreign country to foreign country).
1. Sign our offer to use our DHL rates. There is no term commitment and no minimum revenue required. Cancel at any time.
2. We will send you a Welcome Kit which contains all of the information you will need to immediately create a shipment. You can ship online through the DHL website, with DHL shipping systems or with your own third party software.
3. You ship as often as you like, as many packages as you wish. DHL Express will invoice you weekly for the packages you sent at our deeply discounted rate.
4. Each month, we will compile a savings analysis for your review. This report provides insight into your international shipping spend and contains all of the details for each shipment you sent. We will also show you how much you saved for each package. The savings analysis is accompanied by an invoice for half of the savings you realized.
Want the rates now?
Getting started is easy:
Call us at 866-200-7283. Dial any of the following extensions to receive immediate assistance from the top executives here (or send us an e-mail by clicking the name below):
Richard Palarea, CEO, extension 201
Christopher Steer, CSO, extension 304
Jim Ries, Sr. Logistics Consultant, extension 310
Retailers: the battle of “free shipping”
Much has been made of retailers offering free shipping. Amazon lead the way, forcing others to follow suit just to compete. If you are Amazon, you can surely make up the difference in eating the shipping expense by the sheer volume you command to reduce your rates (bottom line) and the volume you sell to make up for it on the top line. But if you are a small retailer offering the same products someone can find on Amazon, good luck absorbing the shipping costs just to compete. It just doesn't happen...short term or long term.
Holidays are the time when the spotlight shines brightest on this issue. Retailers vying for consumer product dollars create promotions. The one that made a big stir last November was Wal-Mart (we broke this on our Facebook page with this story) .
We even had one client, a well-known and visible brand, who asked us to help them negotiate their carrier agreements and achieve transportation spend management. One of the hot buttons for them was the free shipping game. They said, "there was a day when we used to practically give our product away, as long as we could ship it to the consumer. Shipping was the profit center, not our products". Amazon changed all of that; to the degree that this company, who is publicly traded, was being followed so closely by the analysts on Wall Street that they needed to address the matter in their earnings calls. Analysts would ask what the company was going to do about the profit center that had become a cost center...to the tune of $60 million per year. This is a problem that needs a solution.
FedEx commissioned a paper to provide smaller retailers with strategies to survive the free shipping wars. It didn't get much play, but had some sound (and some not so easy to implement) tips. Here is our attempt to resurrect this info and provide it, if it can be of use.
You will find the PDF version of the paper on the FedEx site.
New Squidoo Lens: How to get 80%+ discounts on international shipping
We just posted a new Lens on Squidoo with the secrets to getting an immediate 81% discount on international small package delivery service. This lens covers everything you'll need to get started quickly. The rates are significantly discounted and include pricing for both import and export shipments.
Check your carrier agreement to see if FedEx or UPS is offering you 81% discounts on International Priority and Worldwide Express services. If not, read this Squidoo Lens immediately and take action!