Parcel shippers expect rate increases of 2 to 3 percent next year
Shipping Digest reports today that parcel shippers expect ”rate increases of about 2 to 3 percent on most products … as the industry waits for UPS, FedEx Express and DHL to unveil their 2007 rate cards.”
The story is based on a Morgan Stanley survey of “more than 250 of the largest U.S. parcel shippers”.
The survey also found that shippers continue to “shift more loads to lower-cost ground from air”, and that
“…shippers projected the fastest growth in shipment volume for the U.S. Postal Service at 4.4 percent, reflecting service improvements by the agency and cost savings because ‘USPS cannot charge a fuel surcharge.’”…
… Shippers said USPS “has a long way to go” to make up the quality gap it has with UPS and FedEx…
… Since USPS is the biggest customer for FedEx, Morgan Stanley said the postal rate increase also has the potential to dampen FedEx volume to the benefit of UPS.