2010 Price Increases: UPS, FedEx, USPS

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-Increased prices as of January 4, 2010

UPS Ground service has increased 4.9%.  UPS Air and International Services have increased a net 4.9% through a combination of a 6.9% increase in the base rate and a 2% reduction in the Air and International Services fuel surcharge.

FedEx Express package and freight rates increased an average of 5.9% for U.S. and U.S. export services. The rate increase is partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points.

 USPS has increased priority shipping rates by 3.3%.

FedEx wins IRS Ruling

 FedEx disclosed a favorable ruling form the IRS regarding the status of independent contractors.  The IRS ruling concludes drivers for ground operations are categorized as independent businessmen.  If categorized as FedEx employees, shipping charges would increase to cover cost.  Teamsters and some states are unhappy with the ruling citing drivers are currently ineligible for workman's comp., overtime and all labor laws.  The Court of Appeals states FedEx Ground Independent Contractors are self employed business owners and are precluded from the jurisdiction of the National Labor Relations Board.