Why UPS Might Not Match FedEx’s Higher Package Prices

A UPS driver loads his truck with packages at a sorting facility in San Francisco Photograph by David Paul Morris/Bloomberg

Now that FedEx has announced it will charge extra for larger packages, the cheap delivery that has become standard for online shopping is coming to an end, right? That’s what shipping pundits would have us believe. They note that FedEx and UPS always move in lockstep on pricing. “It’s almost a foregone conclusion,” Rob Martinez, president of shipping strategy consultant Shipware, told the Wall Street Journal. “They have a history of hitting each other like prizefighters back and forth.”

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