As is becoming a yearly tradition, FedEx and UPS have raised their rates for declared value protection effective December 31st, 2010 and January 7th, 2013, respectively. Their shipping rates and other auxiliary services are increasing, as well.

An even bigger hit is seen to their minimum charges for declared value coverage  The minimum charges will increase from $2.40 to $2.55. If you want coverage from FedEx or UPS for a shipment valued at $150.00, they will charge you $2.55 to cover it!

Here is a list of all the rate changes in the past 9 years:

*Rate for $100.00 of coverage, per package.

If you have thought about shipping insurance with a private insurance company like Shipsurance, now is the time to take another look.

Our pricing has not changed with the carrier increases. In fact, we have lowered our pricing over the years.

Why Shipsurance?:

• Low coverage rates.
• Broader coverage. You do not have to keep track of what FedEx, UPS, USPS, etc will or will not cover.
• Rapid, FAIR, and paperless claims process.
• Insurance integrated with most major shipping systems.
• Friendly customer service. If you have a claim, you will be dealing with one Representative not passed around to restate the issue.

As expected, UPS followed up the announcement from FedEx and has announced their 2013 rate changes. The changes will take place on December 31, 2012, as opposed to the FedEx start date of January 7th, 2013.

Since we offer shipping insurance coverage, we always focus on the declared value fees.  The declared value fees have been raised for the 8th year in a row; a 243% increase over their 2004 rates.:

Other UPS Rate Changes for 2013:

• An average net increase of 4.5 percent on all UPS Air and U.S. origin international services.
• An average net increase of 4.9 percent on all UPS Ground services.
• The charges for Delivery Confirmation Signature Required and Delivery Confirmation Adult Signature Required will increase $0.25.
• The Residential Surcharge for U.S. Ground Services will increase $0.25. The Residential Surcharge for U.S. Air Services will increase $0.20.

For a complete list of rate changes, visit: http://www.rates.ups.com/

Once again following UPS, FedEx has announced their 2012 rate changes. The changes will take place on January 2, 2012; the same day that the new UPS rates take place. Below is a list of some of the changes

FedEx Rate Changes for 2012:

• Rates increased an average of 5.9%. The rate increase was partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2%.
• Minimum rates for FedEx Express services changed.
• SmartPost rates increased.
• Additional Handling Surcharge increased from $8 to $8.50.
• Delivery Area Surcharge - The surcharge for commercial and extended commercial shipments increased from $1.85 per package to $2 per package.
• FedEx Express and FedEx Ground services- The surcharge for residential shipments increased from $2.75 per package to $3 per package.
• FedEx Express and FedEx Ground services – The charge for Direct Signature Required increased from $3.25 per package to $3.50 per package

The rate change that Shipsurance can help offset is the  annual raise in Declared Value cost:

• Declared value fees for FedEx Express and FedEx Ground services – Increased from $0.75 to $0.80 per $100 of value. For U.S. package services, the charges apply to shipments valued in excess of $100, and the minimum charge increased from $2.25 to $2.40.

Remember, Shipsurance offers complete coverage for your packages in transit and our coverage is real, regulated insurance for parcels and packages shipped domestically and worldwide.

We apologize for interrupting your holiday shipping!

This chart shows some of their limitations:

Before you ship anything with a high value, know what will and will not be covered. The carriers WILL accept payment for declared value coverage, but if something happens to your shipment you will not be covered. Insure with Shipsurance and we provide you with our clear and concise coverage conditions. Insure more for less with Shipsurance.

Declared Value

• Declared value coverage is not insurance for shippers.
• Shipper must prove that the carrier was negligent.
• Does not increase a carrier’s scope of liability, but simply allows a shipper to pursue a higher recovery.
• Does not cover losses occurring outside control of the carrier.
  • Common exclusions and warranties may include “dishonesty on part of carrier’s employees” or “theft occurring while vehicle is left unattended”.
• Shipments are not covered “door-to-door”.
  • Limits liability to the time in which the goods are in the care, custody and control of the carrier’s actions or failure to act that are not excluded by the provisions of the Bill of Lading and tariff.
• Claims handling is specified in the carrier’s Bill of Lading and tariffs.

Insurance

• Provides ALL-RISK* coverage while shipments are in transit.
• Pays regardless if the loss or damage was due to the carrier’s negligence.
• The insurance company, for a premium, agrees to indemnify the shipper against loss from perils expressly stated in the policy.
• The insured is covered for listed perils and must show that a loss occurred and was a listed peril.
• Is regulated by each state’s department of insurance.

* Our shipping/cargo insurance offering is All-Risk. Other insurer may offer FPA coverage.