INDUSTRY NOW Be Prepared for UPS, FedEx Rate Increases in 2020 This content is provided by Partnership, the endorsed shipping partner of the National Sporting Goods Association.
The changes FedEx and UPS have instituted in recent years and are making in 2020 are a direct response to these industry trends. In the past several years, they’ve broadened the use of dimensional weight pricing, added new peak surcharges and drastically increased the surcharges for larger packages.
UPS and FedEx rates are slated to go up in 2020 by an average of 4.9%. The changes took effect for UPS on December 29, 2019 and while the FedEx rates went into place on January 6, 2020.
Understanding the 2020 Rate Increases We know how daunting it is to analyze the 2020 FedEx and UPS
If you’re planning to budget for your costs to go up 4.9% in the next
rates, so PartnerShip has done the hard work for you. PartnerShip
year, you better think twice. The announced average doesn’t paint
produced a free white paper where it breaks down the new rate
a complete picture. The rates for some packages will be increasing
charts and simplifies some of the complex changes. It is a great
less than 4.9%, but that means the cost to ship other packages is
way to find out what will cost you most in 2020. PartnerShip can
increasing far more. What you’re shipping, where you’re shipping
also help with ways to offset the rate increases.
it to, and what service you’re using will ultimately determine how much you should budget for your shipping costs in the new year.
To find out more information about the NSGA Shipping Program through PartnerShip, contact NSGA Membership Manager Brian Van Acker at bvanacker@nsga.org or go to https://www.nsga.org/ membership/discounted-services/shipping/.
Hibbett Sports Selects Longo as New CEO Hibbett Sports Inc., did not have to look far to select Michael Longo as its new CEO. Longo has been in charge of City Gear for the last 13 years. City Gear was acquired by Hibbett a little more than a year ago.
FedEx and UPS Surcharges
Effective December 16, Longo succeeded Jeff Rosenthal, who
The rates, however, are only one part of the equation. You also
announced his planned retirement
have to take into account the additional fees that UPS and FedEx
in March. Also effective with his appointment as CEO, Longo will
tack on. It’s more important than ever to be mindful of what could
replace Rosenthal on Hibbett’s board of directors. Rosenthal had
qualify your packages for these surcharges. Not only do the costs
also served NSGA as Board Chairman.
increase year over year, but the carriers also make adjustments to how the charges are defined – making it more likely that your packages will be hit with them.
“I am humbled and extremely honored to be appointed President and CEO of Hibbett Sports,” Longo said in a statement. “It’s a very exciting time for Hibbett as we continue our mission of improving
A prime example of this is the change both FedEx and UPS made to
the productivity of our store base while also growing the omni-
their Additional Handling fee for 2020. They’ve lowered the weight
channel business to deliver a differentiated customer experience to
threshold to 50 pounds from 70 pounds, which means your costs
underserved markets. I look forward to working with the company’s
could go up significantly if you ship packages within that window.
board of directors, leadership team and all Hibbett employees to further that mission.”
Industry Trends
Longo served as CEO of Memphis, Tennessee-based City Gear,
Online shopping has had a profound effect on the parcel industry
where he oversaw the successful acquisition of the company in 2018
and the way that FedEx and UPS operate. The carriers are moving
by Hibbett. Establishing the company in 2006, he was instrumental
more residential deliveries and an increased amount of larger
in creating a unique brand in city specialty retailers and grew the
packages, as consumers have become accustomed to being able
business through various acquisitions.
to order almost anything online and receiving it in two days or less. NSGA NOW ®
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