Pricing

Late last week, Atlanta-based global freight transportation and logistics services bellwether UPS announced general rate increases (GRI) for 2022, which are set to take effect December 26, 2021.

Quarterly revenue—at $23.2 billion—saw a 9.2% annual increase, and adjusted earnings per share—at $2.65—was up 9.2%, for the same period. And operating profit—at $3.0 billion—was up 23.4%.

September’s TVI reading—at 229—fell 1% from August. Despite the decline, this still marks the highest reading for any September on record, according to DAT. The TVI hit its all-time high in June, coming in at 237.

The report’s shipment reading—at 1.184—eked out a 0.6% annual gain, well short of August’s 12.3% annual gain, and September freight expenditures—at 3.818—increased 32.2% annually, which is off from August’s 42.2% annual gain.

2022, and it added that some optional services and surcharges will also head up. Specific details, regarding the pending rate hike, were not made available, with the company saying that a guide to the 2022 rates will be published when it is made available.

Quarterly revenue—at $22 billion—saw a 14% annual increase, and operating income—at $1.398 billion—slipped 12% annually. Diluted earnings per share—at $4.09—were off 13%, falling short of Wall Street expectations of $4.89.

The August reading for the TVI—at 231—increased 2% from July and posted a 17% annual increase and is one of the five highest months on record. July came in at 222, which was preceded by June’s 237 (the all-time record), and May’s 212.

Data recently issued by Los Angeles-based industrial real estate developer CBRE indicated that leasing volume for the United States industrial market is on track for a new annual record in 2021, with total activity through July, at 587 million square-feet (SF), a 52% annual gain.

The Postal Regulatory Commission (PRC), a concern responsible for oversight of the United States Postal Service (USPS), including oversight of rates and services, and ensuring the Postal Service meets all of its legal requirements, recently approved proposed temporary price adjustments for key USPS package products for the 2021 peak holiday season.

USPS officials said that this temporary price adjustment is in line with what it did in 2020, in anticipation of what it called heightened peak season package and shipping demand that often brings about extra handling costs.

Quarterly revenue—at $23.4 billion—increased 14.5% annually, and adjusted earnings per share—at $3.06—saw a 43.7% annual gain, topping Wall Street expectations of $2.81. Operating profit—at $3.258 billion—rose 47.3%.

In light of Peak Season parcel surcharges recently kicking in, based on recent announcements respectively issued by the global parcel duopoly of FedEx and UPS, there is more than enough for shippers to stay on top of and address, at a time when things have remained in a state of ongoing, or perpetual, Peak Season.

FY 2022 full-year revenue rose 17.6% annually, and operating income climbed 46.8% annually. For the fiscal fourth quarter, revenue rose 23% annually, and operating income headed up 278%. Earnings per share (topping Wall Street expectations of $5.02 per share) well outpaced the $1.28 per share recorded a year ago, as well as a $334 million loss.

The company said that in order to provide its customers with the best possible service during this challenging time, these surcharge increases are being implemented

Coming off of March, which was the highest monthly output ever, April was the second-highest, even with the sequential decline, coming in at 225, a 5% decline compared to March. And the April TVI was up 39% compared to April 2020 and was up 26% compared to April 2019.