Why Do Parcel Rates Keep Going Up?
Shipping costs are not cheap and it seems that that every time you turn around, the rates go up. The question of why do parcel rates keep going up is not often met with a cut and dry answer. There are a lot of contenders when it comes to shipping; from pricing zones to tiered rates to hybrid services, there is a cost to it all. Keep reading if you’re curious as to why parcel rates keep going up or heck, maybe you just want to know what a parcel is.
A parcel is a “non-machinable” package which is equivalent to anything other than a flat, small or large envelope. USPS, FedEx and UPS deliver mail or shipments to nearly 159 million addresses in the country on a daily basis. Postage and shipping increase annually and 2019 falls right in line with years past, roughly 4% to 9% depending on the domestic parcel service company utilized. This increase does not include surcharges, additional handling fees or packaging requirements.
FedEx, USPS, and UPS are all domestic carriers that charge parcel rates based on dimensional or cubic measurements, retail or commercial shipping, and offer contracted or flat rates. As a business owner, you may think that you have the best shipping rates with your contracted carrier, but what a business may not realize is that all of the domestic carriers not only compete with each other for business specific pricing but on the back end, they also collaborate on the last mile of shipping. For example, you may think you are shipping with FedEx, but really the last mile of shipping is completed by USPS. Questioning your contracted pricing now?
The basic economics of supply and demand has really been brought to life with the age of the e-commerce business and the simplicity of shopping online. This relationship will continue to stress the capacity of parcel delivery, inevitably increasing parcel rates annually.
While this may not have answered exactly why do parcel rates keep going up, YCS® Group does have an answer on how to access consistent, deep discounted rates on your parcel shipments with the domestic and international parcel carriers that you already know. Visit: https://ycsgroupllc.com/ycs-group-parcel-savings/ for additional information.