Insight Into Baseline Shipping Costs

Given that the topic of shipping is popular on wine boards I thought I would share this, received in an emailed newsletter from the vendor we use Refund Retriever. FWIW and in my opinion common carriers have suspended (i.e., killed) so many guarantees that I am still surprised Refund Retriever and their competition remain in business.

That said, here’s a link to their overview of the 2021 FedEx general rate increase: 2021 FedEx Price Increase Part 2: General Rate Increase (GRI)

Per their analysis both Express and Ground service are going up on average 4.9% in 2021. Of note the 41-50 pound package rate looks like an increase of 5.18%. Home Delivery service also seems on the high end of the increase scale.

Every account has a different discount deal with FedEx and/or UPS based on volumes and such. I’d think/hope that larger shippers (in the wine world for example We Ship Express, Vinfillment, WineDirect, Wineshipping, et. al.) can push back for smaller increases. But maybe not. With the decrease in in-person shopping across the board and concomitant increase in common carrier shipping plus the lack of general competition in the common carrier arena one might surmise rates can rise without much resistance. Add in the complexities of shipping alcohol and the common carriers basically have the shipper cornered, where’s a winery or retailer going to take their business? Anyway, I hope this information is useful in understanding the underlying costs involved with shipping.

Add into the fact that FedEx and UPS have virtually no insurance in case of heat/freezing damage, popped corks, non-delivery, theft and returned shipping costs, yet increase their rates every year… [scratch.gif]

Thanks for this. This is why Amazon has spent all that effort building their own logistics chain, although it can’t handle alcohol/wine awesomely from what I understand.