UPS Shipping Rates
Every year, large shipping companies announce a rise in their rates. This year, the rise was not too high because of the stability of oil prices at the current level. Most shipping companies increased the rates by 4 to 5\. The effect of this increase in the overall rate may vary depending on the characteristics of the corridor or freight, such as weight or class.
The Annual Rise in Shipping rates
Shipping companies usually update their prices at the beginning of the New Year. The 2019 shipping rates updates apply from December 2018, meaning that any holiday package you send with a large shipping company such as FedEx or UPS will include 2019 rates.
New Shipping Costs
The United Parcel Service (UPS) announced that it will increase shipping rates by an average of 4.9\ for UPS Ground, UPS Air & International services, and UPS Air Freight rates. The rise will include:
- UPS Sure Post Rates
- UPS Air Freight Rates
- PS Daily Package Rates including UPS Ground, UPS Air, and UPS International services
- U.S. Origin UPS Express Freight Premium Direct Rates
- UPS Retail Package Rates including UPS Ground, UPS Air, and UPS International services
- UPS Alaska and Hawaii Daily Package Rates
- UPS Hundredweight Service Package Rates
The annual rise in shipping costs has a direct effect on traders, importers, and exporters because they will bear this rise. The shipping companies argue that the rise was necessary and vital in order to meet increases in the cost of transport and operation and management of ships.
Expected New Shipping Rates
The average shipping price for the 20-foot container from Hong Kong and Taiwan will now be $ 1200 and $ 1,800 for the 40-foot container, while the container price from China's 20-foot ports will rise to $ 1,100 and $ 2050 for the 40-foot container.
The 20-foot container from Singapore will raise shipping prices to $ 1000 and the 40-foot containers for $ 1,800. The increase in freight prices follows an additional charge that shipping companies had imposed over the past four months to cope with rising fuel costs caused by global oil price rises of $ 125 for 20-foot containers and $ 250 for 40-foot containers.
Shipping Rates and Oil prices
Rising oil prices are one of the major concerns of shipping companies and in order to cope with them, most shipping companies resort to rising shipping prices to goods from East Asia, Europe and all over the world.
Freight rates and Oil prices are associated. The rise of oil prices automatically leads to a rise in freight rates especially in maritime transport rates since oil is the main source of energy for ships.
Maritime transport occupies the largest share of freight traffic in the world for two main reasons: first, it offers cheap prices compared to air cargo. Second, there are certain goods that cannot be shipped only by vessels such as timber and huge quantities of wheat and others. Some vessels are able to load 50000 tons while not overload whereas the plane can load 50 tons at most.
Therefore, even with the new rise in shipping prices, maritime shipping will continue to be the most demanded shipping method.