FedEx plans to increase shipping rates next year starting with its FedEx Express service:
FedEx Corp. will increase the net average shipping rate for FedEx Express by 4.9 percent, which is composed of a 6.9 percent increase in standard list rates, offset by a 2.0 percent reduction in the fuel surcharge. The new rates will be effective Jan. 7, 2008 and apply to U.S. and U.S. export express package and freight shipments.
Rates and surcharges for FedEx Ground also will increase for 2008. These changes will be announced later this year.
A 2006 study on Print Media Distribution: Process, Profitability, and Challenges published by the Printing Industry Center found that "distribution has been shown to be an important aspect of the print production process. As such, distribution profitability, workflow and challenges are key issues facing printers today."
Price increases by the USPS, FedEx, UPS are threats to distribution profitability and can been seen as non-valuded added activity in print procurement. It's also important to note that the cost of electronic distribution has remained relatively constant and scales more effectively.
