Did you ever have trouble trying to fit a bulky item into a USPS Priority Mail Flat Rate Envelope? The US Post Office is coming out with a new Priority Mail Small Flat Rate Box that will have the same rate as the Flat Rate Envelope on January 18, 2009. The dimensions are 8 5/8″ x 5 3/8″ x 1 5/8″ which is perfect for small items about the size of a video tape. Here is the best part—It is only $4.95 retail regardless of weight or destination!
No residential extra fee
No fuel surcharge
No Delivery Area Surcharge
No Extended Delivery Area Surcharge
You can send this box anywhere within the United States for this one flat fee.
And, if you process your label online or use PC Postage, your cost is only $4.80 and you get Delivery Confirmation for free. That is a savings of $.80 or 16%.
Did I mention that the box was free? Customers can begin to order it at usps.com around January 10 in packs of 10 and 25, up to a maximum of 200.
UPS does not guarantee ground shipments that are “picked up or scheduled to be delivered during the period December 1 through December 31.” So that could mean anything after next Monday, November 24 is not guaranteed.
FedEx guarantees do not apply if the “package was tendered for transportation during the 14 calendar days before Christmas”. According to my calculations, that means anything shipped after December 10 is no longer guaranteed to be on time.
The US Post Office guarantees delivery of Express Mail to most destinations 365 days a year – even Sundays and holidays.
The guarantee is based on the origin and destination zip codes and the time that the package is dropped off. You can go the USPS Commitment Calculator to find out about your specific situation.
Most people don’t even ask for their money back or even check if their item was delivered when promised. Delivery guarantees will be back soon and you will find out more in future blogs.
Yes, it is. UPS and FedEx have the same base rates for ground service.
When a company named RPS started in 1985, they came out with the same base rates as UPS but with something new—a discount! To my knowledge, UPS did not give discounts prior to then, but to remain competitive began discounting as well. FedEx purchased RPS in 2000 and kept the same pricing policy. So that is why it is not surprising to see this price announcement.
However, just because they are the same, does not mean that you should not compare rates and services between carriers. I wouldn’t compare UPS Ground to FedEx Ground because a shipper will have a better discount with one of the two. So ground shipping will always be less with the carrier that provided the better discount.
I would suggest that you compare service and prices with the US Post Office, regional carriers, international carriers, and for heavier weights, Less than Truckload (LTL) carriers.
Some people are sour that DHL is shutting down their domestic ground and express operation in the U.S.
Can lemonade be made out of this lemon?
According to John Mullen, CEO of DHL Express, in early 2009, DHL will introduce their first deferred international (day definite shipping) product for U.S. customers, named Economy Select International. If this product is priced right, it could be a great option for shippers wanting an economical way to send their product internationally.
In addition, DHL Express will introduce time definite Express products from the U.S. with 9AM and 12 noon delivery to select destinations internationally.
DHL’s commitment is to focus on their core competence, international shipping. According to Mullen, “DHL will offer the latest pickup and the earliest delivery times into and out of many U.S. major metropolitan areas for international shipments and will continue to have a strong presence in the U.S. coupled with an unparalleled global network.”
Let’s hope that DHL will make shipping international more competitive with more options, better service, and lower prices.
UPS has created a welcome center for DHL customers right from their home page. You can also compare UPS services & technology to DHL. No discounts are announced.
The US Postal Service issued a statement that it “is open for business and ready to deliver with a full range of competitively-priced shipping products and services.”
In addition, there are regional carriers in some parts of the country that offer package delivery.
What should you do?
My position has always been that no carrier is the best carrier for everything. Every carrier has its strengths and weaknesses. Even without DHL for domestic services, it is still true.
The key to getting the best price is to understand your package characteristics. If all you do is ship light weight residential packages, the USPS may be your best carrier. But, I have seen found that it is rare that any organization only does only one kind of shipping. There is usually a need for shipping envelopes and packages. They may need to be there by a certain time (next day by 10:30) or it may not matter. There are over 25 variables that affect the cost of shipping and different carriers provide various price points depending on their niche.
Larger shippers that spend over $1 million dollars on small parcel shipping should hire a professional parcel negotiator. Let’s face it; with DHL’s announcement, your leverage is gone. If you are interested in working with the best parcel negotiators in the country, let me know, and I will be happy to help you find the right one.
In this video, John Mullen, CEO of DHL Express, explains why DHL is exiting its US Air and Ground business. They will be closing domestic and air and ground networks by January 31, 2009.
Today DHL announced that they would be shutting down their air and ground package service in the United States, effective January 30, 2009. You can get the presentation here. This is bad news for parcel shippers. We have already seen a price increase announcement from UPS and FedEx is sure to follow. As the DHL commercial from a few years ago said, “Competition: bad for them, good for you.”
Posted by mtaylortec
Posted by mtaylortec
As Gomer Pyle used to say, “Surprise, surprise, surprise!”
Posted by mtaylortec
According to John Mullen, CEO of DHL Express, in early 2009, DHL will introduce their first deferred international (day definite shipping) product for U.S. customers, named Economy Select International. If this product is priced right, it could be a great option for shippers wanting an economical way to send their product internationally.
Today DHL announced that they would be shutting down their air and ground package service in the United States, effective January 30, 2009. 
