Carrier Update: General Rate Increases & Cargo Capacity on the West Coast Ports

General Rate Increases

  • In a very precedented move, UPS announced its matching overall General Rate Increase, or GRI, to FedEx’s previously announced 6.9% increase. Note that this is an overall average, with certain weight/zone combos tipping the scale one way or another. Although nobody was holding their breath on this, what is unusual is the steep amount. Also noted in the UPS brief is that it is dropping the word “peak” from its surcharge catalog, on 12/27, and it will be known henceforth as “demand surcharges.” This certainly is a move to utilize this surcharge at periods outside peak season.

Cargo Capacity and the West Coast Ports

  • Overstocked retailers continue to cancel overseas orders leading into the holidays, creating increased cargo capacity in the market. Cargo from Asia appears to be the most impacted. While this is helping to settle costs for cargo movement, it may not bode so well for the ILWU, the union that represents longshore workers on the west coast. Workers on the west coast have been without a contract since July 1. Decreased volume from Asia, however, means decreased volume to the US west coast ports. This decreased volume may very well erode the leverage that work slowdowns or stoppages may have provided…but only time can tell.

OSM Worldwide

  • OceanX’s primary parcel carrier, OSM Worldwide, has been named “Great Place to Work” for the 4th consecutive year. OSM Worldwide, which offers a hybrid delivery model that hands off to the USPS, received high marks for communication, leadership behavior, and a culture that allows employees to be themselves at work!

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