Battle of the Brands Ups vs Fedex

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Battle of the Brands: UPS vs. FedEx by Kevin Shult This post is part of ourBattle of the Brandsfeature. Let us know which brand you prefer, and check out other Battle of the Brands posts. When you need to ship a package, which company first comes to mind? According to last year's Battle of the Brands non-scientific poll, an overwhelming majority said they favored United Parcel Service Inc.(NYSE: UPS) over FedEx Corp.(NYSE: FDX). Higher fuel surcharges, a weak economy, reduced domestic package volume, and a recent push from the U.S. Postal Service have impacted both of these international shipping companies in the past year, but Americans still want the same quality service at a discount price. Let's take a look at a few changes since last year: The US Postal Service Tries To Gain Ground The largest player in the U.S. overnight package delivery business is attempting to increase its market share in the fast-delivery business next month. USPS is barely holding on to its 32% market share in the business, as FedEx and UPS continue to push the envelope at 31% and 25% market share, respectively. For the first time, shippers using Express Mail, Priority Mail, and several other parcel services will be able to get lower rates for large- and medium-volume contracts, according to the agency. Will UPS and FedEx need to cut their prices further to compete with the USPS? Large Rate Increases For 2008 This year, FedEx and UPS announced that rates for ground packages would increase an average of 4.9% on the ground and 6.9% in the air (minus a 2% cut in fuel surcharges, creating a 4.9% increase in the air as well). So what does this mean for you? The key term we need to acknowledge is averages. Rates for certain packages will increase more than 4.9%, while other shipments will increase less than 4.9%, all depending on the characteristics of the

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