UPS & FedEx DAS changes expected to play a bigger profit role in 2022.
Rearranging zip codes to increase margins is nothing new to United Parcel Service or Federal Express. There has been an ongoing effort designed to align lower density/more costly deliveries with profits. Changes usually associated with Rural Residential and Rural Extended Area Residential zip code deliveries.
The explosion of ecommerce & business to business deliveries over the past several years, has made it necessary for Carriers to identify ways to lower their cost while making a profit along the way. A couple of their more expensive surcharges: Delivery area Surcharge (DAS) and Delivery Surcharge Extended (EAS). Both designed to charge more for packages destined for the less populated zip code addresses across the country. Usually, the determination goes something like this…the MORE rural a delivery…the less populated…the less populated means lower delivery density…the lower the density…the more costly…the bigger surcharge applied…
To get down to the details of this increase AFMS has prepared an expert analysis that you can find here.
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