Shipping has become a huge expense for many New Jersey businesses over the last few years as national and international e-commerce have rapidly expanded. The growth of international commerce has led to the increased needs for business shipping and mailing, which has in turn, has private and federal postal services shifting their practices to adapt to the changing needs of American businesses.
The Postal Regulatory Commission (PRC) recently approved a United States Postal Service (USPS) proposal to lower business shipping rates on Priority Mail parcels and packages. Supporters of the proposal hope to encourage more businesses to choose the USPS for their shipping needs over their private competitors and raise the USPS’s profile in the commercial shipping industry.
According to a recent report, the U.S. Postal Service already accounts for nearly two fifths of total shipping volume nationally, yet their revenue share is only one fifth of the market profits. Experts suggest that this is primarily because the USPS has historically focused on lightweight packages with far lower returns than their private shipping competitors. The PRC hopes that the decreased rates for heavier business packages will even the playing field, especially as FedEx and UPS change their shipping rates for 2015.
UPS and FedEx recently announced changes to their shipping prices when they both unveiled their respective “dimensional pricing” plans. Dimensional pricing takes into account the size, shape, and volume of a shipment. Through dimensional pricing, businesses could be billed premium charges for larger-sized packages regardless of their weight, based on the space they occupy in a truck. While previously utilized for oversized commercial shipping, both companies have announced plans to incorporate dimensional pricing into their standard ground shipping services. FedEx also announced a fuel surcharge increase for freight shipments.
With business expenses rising, it’s important that New Jersey businesses have the proper protection for all their assets. At Tri-State Insurance Agency we specialize in helping businesses find solutions for the countless risks they encounter on a daily basis. Our Sussex County business insurance policies are fully customizable to fit the needs of any business, from property protection to liability coverage and additional solutions for all the specialty exposures in between. We also partner with insurers that specialize in certain key niches, such as manufacturing, trucking and wholesalers, who often need excess coverage for their unique operations. Give our Sussex County business insurance specialists a call today at (888) 990-0526 to learn more about all our offerings.