UPS FedEx and the USPS are taking rates up in 2013

1. 2013 Carrier Price Changes

2. It’s that time again !!!!!!!!
NOTE DIFFERENT
EFECTIVE DATES

3. Increases are not linear
By Service Type
or by Weight In confusion there
is profit
or By Zone
% inc rt vs lft Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 % inc rt vs lftZone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
Letter 5.60% 5.59% 5.56% 5.52% 5.65% 5.61% 5.53% Letter 6.67% 6.58% 7.46% 7.46% 7.41% 7.50% 7.34%
1 5.13% 5.16% 6.45% 6.39% 6.42% 6.41% 6.43% 1 5.85% 5.88% 6.88% 6.98% 6.90% 6.92% 6.95%
2 5.03% 5.86% 6.41% 6.40% 6.43% 6.45% 6.46% 2 5.97% 5.93% 6.99% 6.88% 6.95% 6.99% 6.91%
3 5.05% 5.04% 6.41% 6.44% 6.49% 6.44% 6.46% 3 5.79% 5.94% 7.00% 6.95% 6.94% 7.00% 6.95%
4 5.05% 5.05% 6.48% 6.49% 6.49% 6.45% 6.50% 4 5.81% 5.57% 6.98% 6.92% 6.96% 6.94% 7.00%
5 5.34% 5.01% 4.01% 4.03% 4.05% 4.06% 6.49% 5 4.59% 4.52% 4.07% 6.99% 6.93% 6.98% 6.98%
6
7
Priority
5.15% 5.12% 6.44% 6.46% 6.46% 6.48% 6.46%
5.08% 5.08% 4.07% 4.03% 6.48% 6.44% 6.46%
6
7
Standard4.55% 5.89% 6.98% 6.97% 6.93% 6.97% 6.97%
5.81% 5.92% 6.94% 6.95% 6.96% 6.96% 6.99%
8 Overnight
5.03% 5.07% 4.03% 6.48% 6.46% 5.34% 6.46% 8Overnight
5.90% 5.89% 6.99% 6.96% 6.98% 6.95% 6.95%
9 5.12% 5.03% 6.43% 6.45% 4.03% 4.05% 6.48% 9 4.55% 5.90% 6.98% 6.94% 6.95% 6.94% 7.00%
10 5.41% 5.24% 4.05% 4.04% 4.14% 4.15% 6.09% 10 4.66% 5.93% 6.96% 6.98% 6.97% 6.96% 6.99%
% inc rt vs lft Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
Letter 7.44% 7.26% 7.36% 6.87% 6.79% 6.77% 6.92%
1 7.40% 7.29% 7.37% 6.87% 6.82% 6.79% 6.93%
2 6.86% 7.08% 7.28% 6.73% 6.91% 6.78% 6.94%
3 7.32% 7.26% 7.19% 6.73% 6.87% 6.83% 7.00%
4 7.46% 7.43% 7.36% 6.77% 6.85% 6.85% 6.96%
5 7.23% 7.17% 7.34% 6.78% 7.01% 6.94% 6.85%
6 7.32% 7.28% 7.33% 6.82% 6.90% 6.91% 6.92%
7 2 Day
nd
7.41% 7.24% 7.25% 6.83% 6.92% 7.00% 6.88% 2nd Day
8
9
AM
7.46% 7.19% 7.24% 6.97% 6.98% 6.90% 6.93%
7.36% 7.47% 7.37% 6.97% 6.99% 6.94% 6.90%
10 7.36% 7.29% 7.50% 6.98% 6.95% 6.94% 6.96%

4. Your Business is not linear
By Service Type
There are
services that can or by Weight Knowing your
business is crucial
build a model for
you or By Zone
Weight/Zone 2 3 4 5 6 7 8 Weight/Zone 2 3 4 5 6 7 8
Letter 7 2 9 35 7 4 2 Letter 2 11 22 57 17 18 1
1 17 10 23 81 11 36 2 1 12 18 21 143 47 47 4
2 9 14 17 76 6 16 2 2 14 32 37 167 26 39 6
3 20 14 21 132 31 52 5 3 10 35 80 296 55 107 17
4 10 4 6 25 9 9 1 4 3 15 27 59 22 29 11
5 13 9 8 73 21 26 5 14 29 29 140 34 39 3
6
7
Priority
5
6
7
3
7
6
32
30
12
8
7
11
2
1
6
7
Standard4
7
12
4
9
11
99
47
24
9
27
22
10
8
8
9
Overnight
2
4
1
1
5
4
19
19
6
3
3
13
2 8
9
Overnight
3
2
12
4
8
11
31
43
14
11
21
14
4
2
10 4 1 5 31 8 11 3 10 3 7 9 62 6 20 8
Weight/Zone 2 3 4 5 6 7 8
Weight/Zone 2 3 4 5 6 7 8
Letter 2 3 2 26 14 15 2
1 971 861 1028 3896 639 957 64
1 17 32 42 260 53 130 3
2 735 658 814 3205 555 781 42
2 20 27 41 237 46 74 1
3 481 427 519 2025 384 544 63
3 24 41 54 405 96 229 18
4 306 314 375 1420 278 407 62
4 4 15 22 86 35 57 3
5 431 411 484 1974 348 529 65
5 23 45 41 247 45 98 9
6 246 246 275 1143 213 300 80
6 15 19 35 141 38 65 12
7 277 300 335 1227 222 331 45
8
9
Ground
235
176
182
184
267
275
960
958
178
474
300
267
61
44
7
8 2nd Day11
11
14
11
16
16
126
75
27
16
43
31
4
9
9 9 14 14 68 18 33 8
10 189 177 212 827 143 277 56
10 11 19 21 91 18 36 6

5. Don’t assume the carriers have
the same base rates
Carrier Year Carrier Year
Service Level 1 Service Level 1
Minimum Charge: 0.00 Minimum Charge: 0.00
Fuel Surchare:
0.00% Fuel Surchare: 0.00%
Weight Discounts
Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Weight Discounts one 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
Z
Letter 0.00% Letter 0.00%
1 0.00% 12.25 12.30 12.35 12.45 14.15 14.75 16.50 1 0.00% 7.50 8.65 9.30 10.65 13.35 14.75 15.55
2 0.00% 12.35 12.40 12.45 12.55 15.15 16.40 19.20 2 0.00% 7.70 9.10 10.00 11.80 15.15 16.40 18.25
3 0.00% 12.90 13.10 13.80 13.85 17.55 18.40 21.70 3 0.00% 8.40 9.60 10.95 13.10 17.55 18.40 20.85
4 0.00% 13.00 13.55 14.70 15.60 19.45 21.00 24.80 4 0.00% 9.25 10.60 11.65 14.70 19.45 21.00 23.10
5 0.00% 13.10 14.15 15.50 17.05 22.05 23.15 27.80 5 0.00% 9.85 11.35 12.75 16.05 21.65 23.15 25.45
6 0.00% 14.30 15.45 17.70 19.10 24.60 25.75 31.55 6 0.00% 10.45 12.40 14.00 17.60 23.35 25.75 27.95
7 0.00% 14.40 16.95 19.10 20.50 27.30 29.10 34.65 7 0.00% 10.80 13.40 15.10 18.80 25.30 28.55 30.70
8 0.00% 15.10 18.50 20.60 22.05 30.00 31.85 37.85 8 0.00% 11.35 14.45 16.30 20.10 27.45 30.60 33.50
9 0.00% 15.80 19.15 21.95 23.80 32.15 34.95 40.75 9 0.00% 12.05 15.35 17.35 21.35 29.45 32.70 36.10
10 0.00% 15.90 19.25 23.15 25.60 34.15 37.60 43.95 10 0.00% 12.75 16.00 18.30 22.80 30.95 35.00 38.70
• Generally UPS Next Day is
3% less
• Next Day Air Saver 2%
• 2day AM 3%
• 2 day 3%
• 3 day 13%

6. MINIMUM CREEP
Minimum January Fuel
YEAR Charge Y/O/Y Increase % Surcharge Net $
2005 $3.62
2006 $3.80 4.97%
2007 $4.00 5.26% 3.75% $4.15
2008 $4.20 5.00% 6.25% $4.46
2009 $4.57 8.81% 4.75% $4.79
2010 $4.84 5.91% 5% $5.08
2011 $5.17 6.81% 6.50% $5.51
2012 $5.49 6.19% 8% $5.93
2013 $5.84 6.38% Est 7.5% $6.28
49.33% 73.48%
61% v 2005

7. Minimums
Do I really have a discount at all?
Minimum Charge: 0.00
Fuel Surcharge: 0.00%
Many contracts are set Weight Discounts
Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
so that no discounts Letter 0.00%
will drop below the 1 30.00% 4.09 4.36 4.49 4.68 4.90 4.96 5.05
rate of a 2 30.00% 4.45 4.74 5.13 5.24 5.52 5.59 5.79
3 30.00% 4.52 4.95 5.40 5.57 5.85 5.99 6.39
Zone 2, 1 LB charge 4 30.00% 4.62 5.08 5.67 5.93 6.15 6.38 6.86
5 30.00% 4.75 5.13 5.89 6.17 6.38 6.65 7.22
6 30.00% 4.87 5.29 5.99 6.31 6.50 6.85 7.39
7 30.00% 5.09 5.43 6.09 6.45 6.68 7.03 7.60
8 30.00% 5.28 5.56 6.25 6.57 6.88 7.26 7.97
9 30.00% 5.38 5.69 6.34 6.69 7.03 7.64 8.46
10 30.00% 5.56 5.71 6.44 6.87 7.32 8.16 9.02
New Minimum is $5.84 before the fuel surcharge

8. Minimums
Do I really have a discount at all?
Minimum Charge: 5.84
Fuel Surcharge: 0.00%
Many contracts are set Weight Discounts Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
Letter 0.00%
so that no discounts 1 30.00% 5.84 5.84 5.84 5.84 5.84 5.84 5.84
will drop below the 2 30.00% 5.84 5.84 5.84 5.84 5.84 5.84 5.84
rate of a package 3 30.00% 5.84 5.84 5.84 5.84 5.85 5.99 6.39
below the Zone 2, 1 LB 4 30.00% 5.84 5.84 5.84 5.93 6.15 6.38 6.86
charge 5 30.00% 5.84 5.84 5.89 6.17 6.38 6.65 7.22
6 30.00% 5.84 5.84 5.99 6.31 6.50 6.85 7.39
7 30.00% 5.84 5.84 6.09 6.45 6.68 7.03 7.60
Example: Given a 30% 8 30.00% 5.84 5.84 6.25 6.57 6.88 7.26 7.97
discount, the cells in 9 30.00% 5.84 5.84 6.34 6.69 7.03 7.64 8.46
red would not receive 10 30.00% 5.84 5.84 6.44 6.87 7.32 8.16 9.02
the any or only some
of the discount

9. Minimums
Do I really have a discount at all?
% inc rt vs lftZone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8
Letter
Many contracts are set 1 5.88% 5.88% 5.88% 5.88% 5.88% 5.88% 5.88%
so that no discounts 2 5.88% 5.88% 5.88% 5.88% 5.88% 5.88% 5.88%
will drop below the 3 5.88% 5.88% 5.88% 5.88% 6.10% 7.73% 7.42%
rate of a package 4 5.88% 5.88% 5.88% 7.50% 8.42% 7.81% 7.67%
below the Zone 2, 1 LB 5 5.88% 5.88% 6.86% 8.40% 8.08% 7.70% 7.68%
charge 6 5.88% 5.88% 8.14% 8.31% 8.42% 7.68% 7.59%
7 5.88% 5.88% 7.98% 8.10% 8.28% 7.80% 7.25%
8 5.88% 5.88% 8.00% 8.05% 8.24% 6.63% 6.36%
Look how much your 9 5.88% 5.88% 7.87% 7.65% 8.39% 6.57% 6.40%
rates are going up in 10 5.88% 5.88% 7.61% 7.65% 8.24% 6.58% 6.39%
the weights where
most of your
shipments fall This includes the benefit if
the fuel surcharge does in
fact go to 7.5% in January
Note to self: Ask for no minimum or lower minimum

10. There is a compounding of all
these baked in fuel surcharges
UPS Sets 2009 Rates
Atlanta, October 17, 2008 UPS Sets 2010 Rates
New Pricing Takes Effect Jan. 5, 2009 UPS (NYSE:UPS) today released new list rates Atlanta, November 20, 2009
for 2009, including an average increase of 5.9 percent for UPS Ground packages and New Pricing, Fuel Surcharge Calculations Will Take Effect on Jan. 4, 2010
an average net increase of 4.9 percent on all air express and U.S. origin International
shipments.
UPS (NYSE:UPS) today released new list rates for 2010, including an average increase of 4.9 percent for UPS
Ground packages and an average net increase of 4.9 percent on all air express and U.S. origin international
UPS Freight announced a general rate increase of 5.9% for 2009.
shipments.
The rate increase for air express and international shipments is based on a 6.9 percent The rate increase for air express and international shipments is based on a 6.9 percent increase in the base rate, less a 2
increase in the base rate, less a 2 percent reduction in the air and international fuel percent reduction in the air and international fuel surcharge index.
surcharge index.
UPS Sets 2011 Rates UPS Sets 2012 Rates
Atlanta, November 18, 2011
Atlanta, November 01, 2010
New Pricing Takes Effect Jan. 2, 2012
New Pricing To Take Effect Jan. 3, 2011
UPS (NYSE: UPS) today released new published rates for 2012, including a net increase of 4.9 percent for UPS
UPS (NYSE:UPS) today released new published rates for 2011, including a net increase of 4.9 percent for UPS
Ground packages and a net increase of 4.9 percent on all UPS Air services and U.S.-origin international shipments.
ground packages and a net increase of 4.9 percent on all air express and U.S. origin international shipments.
The rate increase for UPS Ground shipments is based on a 5.9 percent increase in the base rate, less a 1 percentage point
The rate increase for UPS ground shipments is based on a 5.9 percent increase in the base rate, less a 1 percent reduction
reduction to the index-based ground fuel surcharge. The rate increase for UPS Air and international services shipments is
to the index-based ground fuel surcharge. The rate increase for air express and international shipments is based on a 6.9
based on a 6.9 percent increase in the base rate, less a 2 percentage point reduction to the index-based air and
percent increase in the base rate, less a 2 percent reduction to the index-based air and international fuel surcharge.
international fuel surcharge.
In effect your firm may be paying 25% in fuel surcharges

11. FUEL
Run that by me again about how
the
Carrier bakes in some of the fuel
surcharge into the base rate
Ground Air
FedEx 2010 2011 2012 2010 2011 2012 UPS
Jan 5.00% 5.50% 8.00% 7.00% 9.00% 13.00% 12.50%
Feb 5.00% 6.00% 7.50% 6.50% 10.00% 11.50% 11.50%
Mar 5.50% 6.50% 7.50% 7.50% 11.00% 13.00% 11.50%
Apr 5.00% 7.50% 8.00% 7.00% 13.00% 14.00% 14.00%
May 5.50% 8.50% 8.50% 8.50% 15.50% 14.50% 14.50%
Jun 6.00% 9.50% 8.50% 10.00% 16.50% 14.50% 14.50%
Jul 6.00% 9.50% 8.00% 8.00% 15.00% 12.00% 12.00%
Aug 5.50% 9.00% 7.00% 7.50% 15.00% 10.00% 10.00%
Sept 5.50% 8,5% 7.00% 7.00% 15.50% 11.50% 11.50%
Oct 6.00% 8.50% 8.00% 8.00% 14.50% 13.50% 13.50%
Nov 5.50% 8.50% 8.50% 8.50% 14.00% 14.00% 14.00%
Dec 6.00% 8.50% 8.50% 10.00% 14.00% 13.50% 13.50%
AVERAGE 5.54% 7.29% 7.92% 7.96% 13.58% 12.92% 12.75%
Don’t assume carriers have the same fuel surcharge

12. Accessorial Charges
Year Ground Residential Surcharge Increase Air Residential Surcharge Increase DASC air DASR air
2006 $1.75 $2.10 $1.30 $2.10
2007 $1.85 5.71% $2.20 4.76% $1.40 $2.20
2008 $1.95 5.41% $2.30 4.55% $1.50 $2.30
2009 $2.05 5.13% $2.40 4.35% $1.60 $2.40
2010 $2.20 7.32% $2.50 4.17% $1.70 $2.50
2011 $2.45 11.36% $2.75 10.00% $1.85 $2.75
2012 $2.55 4.08% $3.00 9.09% $2.00 $3.00
2013 $2.80 9.80% $3.20 6.67% $2.15 $3.25
Just an example
There are lots of accessorial increases

13. OF CONCERN

14. Notes to Self
Note to self: Rate increases are not linear
Note to self: Your business is not linear
Note to self: No two customers will be impacted the same wat
because the announcement of “average” increases is
meaningless since there is no “average” shipper
Note to self: Build a model of your business using pivot tables or a
third party so that you know your book of business as well as
your carrier does
Note to self: Increases are negotiable, even if you have a contract
Note to self: Understand your use of accessorials!
Note to self: Automate and simplify the use of less expensive,
guaranteed services that can fulfill the recipients need for speed
Note to self: Consultants can get you a 49% better discount than
you can achieve on your own
Make no assumptions based on the “average” numbers announced

15. If you liked what you heard
• Jerry Hempstead
• 1724 Buckhorn Pl
• Orlando Fl 32825
• 407-342-3825
• gmhempstead@aol.com