Parcel shippers shouldn’t expect much more generosity this year compared to 2021.
As elevated package volumes strain carrier networks, shipping costs continue to climb. UPS recently instituted a 5.9% general rate increase, as did FedEx.
Many shippers have accepted surging rates as the cost of doing business in the constrained environment. FedEx Chief Marketing and Communications Officer Brie Carere said on a December earnings call that FedEx expects “a higher-than-normal capture” of its general rate increase, with over half of its customer base having renewed contracts.
