Resource Center/Article • 01/29/2022
Parcel and LTL Carriers Estimate Record Shipments in December
Despite early holiday shopping, carriers and analysts still expect record shipments and growth for both Parcel and LTL carriers in December.
PARCEL CARRIER NEWS
FedEx
- See updated FedEx Rates and Fees below under GRI & Surcharges.
- Upcoming Events
- Q4 2021 Earnings Conference Call – February 1, 2022
- Q1 2022 Earnings Conference Call – April 26, 2022
UPS
- According to FedEx’s VP of Global E-Commerce, Ryan Kelly, the carrier estimates a 10% jump in peak season holiday packages compared to last year. Kelly acknowledged that shipper strategies like Curbside Pickup, BOPIS, Ship-From-Store, and early holiday marketing pushes in October have all helped reduce strain on the carrier’s larger network.
- Related – while discussing peak season holiday preparedness, the carrier highlighted that it had added “14.4 million square feet of sorting capacity for the holiday season — the equivalent of 300 football fields.”
GRI & SURCHARGES
- DHL Express
- DHL Express has published their U.S. Service & Rate Guide for 2022. It takes effect on January 1, 2022. See all DHL Express Service Alerts for more details.
- FedEx
- FedEx has published their Service Guide for 2022. It takes effect on January 3, 2022. Read the announcement for more details.
- FedEx announced changes to their DAS zip code lists, which take effect on January 3, 2022. FedEx added 401 zip codes to the contiguous U.S. list. They added 233 zip codes to the contiguous U.S. extended list. There are 321 zip codes moving from the contiguous U.S. list to the contiguous U.S. extended list. There are 51 zip codes shifting from contiguous U.S. extended to contiguous U.S. Finally, FedEx is removing 213 zip codes from the contiguous U.S. list and removing 1 zip code from the contiguous U.S. extended list. Read the announcement for more details.
- LaserShip
- On December 1, 2021, LaserShip increased their fuel surcharge index by 1.0%. Read the announcement for more details.
- Lone Star Overnight (LSO)
- LSO has announced that their general rate increase will reflect an average 5.9% base rate increase. It takes effect on January 2, 2022. Rates are not yet available. Read the announcement for more details.
- OnTrac
- OnTrac announced a change to their Ground service rates and surcharges that goes into effect beginning December 26, 2021. The rate change reflects an average increase of 5.9%.
- OnTrac is also changing the fuel surcharge index beginning December 26, 2021.
- UPS Canada
- On December 5, 2021, UPS Canada implemented a Peak Demand Surcharge of $1.20 per package that applies to Canada domestic UPS Premium Air Service packages. This includes UPS Express Early, UPS Express, UPS Express Saver, and UPS Expedited, as well as UPS Trade Direct Northbound. Read the announcement for more details.
- UPS Canada has published their 2022 Rate & Service Guide for daily rates. The new service guide is effective December 26, 2021. Read the service guide for more details.
LTL Carrier NEWS
- Knight-Swift Transportation Holdings, Inc. has acquired RAC MME Holding, LLC, including subsidiaries Midwest Motor Express, Inc. and Midnight Express, Inc. Through the acquisition, Knight-Swift Transportation Holdings, Inc. expands its reach across half of the U.S., furthering the company’s “ongoing commitment to building a nationwide LTL footprint.”
- In another digitization boost for the LTL market, MyCarrier announces processing over 700,000 electronic bills of lading in 2021. According to MyCarrier, their eBOL solution helps reduce paper errors and speed up productivity for over 85% of its LTL carrier partners.
- FreightWaves has reported strong quarterly growth for range of LTL carriers, expected to carry into 2022 along with rising rates. LTL carrier ArcBest saw a 24% revenue increase in November, 2021, alone. Like Parcel carriers, many of these LTL carriers are acknowledging a need to update systems, technology, and add employees to meet increasing demand, which in turn adds costs to their customers.
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