"Dear UPS Customer...
...Effective January 3, 2011, UPS Daily Rates will increase as follows: UPS Ground services will increase a net 4.9% through a combination of a 5.9% increase in rates and a 1% reduction in the UPS Ground fuel surcharge; UPS Air and International services will increase a net 4.9% through a combination of a 6.9% increase in rates and a 2% reduction in the UPS Air and International services fuel surcharge...
...In addition, effective January 3, 2011, the dimensional weight divisor used to calculate dimensional weight will change from 194 to 166 for domestic U.S. UPS Ground and Air services shipments, and from 166 to 139 for U.S.-origin export shipments..."
That, incidentally, is a ~16% increase in price on dimensional weight packages. If your box is light and large, you're going to get reamed by 16%.
But I thought there was no inflation - despite the fact that the GDP report showed a deflator of 2.2% - and thus Ben Bernanke was "all in the clear" playing his intentional dollar-debasement game?
Beware margin collapse folks. It's the elephant in the room that nobody's talking about, but not only current equity prices but forward expectations are predicated on margin expansion.
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