Changes are coming……..

Many of you may have read in the Monday Morning Quarterback [Jan 22, 2007] or heard from other suppliers about the restructuring that has occurred with FedEx and UPS Ground rates.

The technical details involve dropping the two smallest oversize categories [OS1 and OS2] and using the carton’s volume [length x width x height /194] as the “dimensional weight”. It is this number along with the zone that determines the cost to ship. The third oversize category [OS3 – 130 inch girth] will remain in effect with a $40 penalty if exceeded.

The laymen’s explanation is that the cost to ship 1 to 7 cartons [generally considered to be that FedEx/Ups range] could reach $100/carton. The reason we are being so vague is that currently three calls to FedEx will yield three different interpretations of the new formula.

We want to let you know that this unexpected expense hangs over the horizon. If applied as presently stated SitWell and Buzz may be forced to initiate a surcharge for orders under 8 chairs. Orders of 8 or more generally fill up a pallet and can be economically shipped LTL [less than full load] via common carrier.
Along with many of our competitors we are working with these two Shippers to mitigate these increases by working out creative discount programs, downsizing as many of our cartons as possible [we have over 45], and finding better LTL rates.

UPS implemented the new program January 1st and FedEx goes into effect February 5th.

We will certainly keep you up-to-date with the results of our efforts.