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UPS, FedEx roll out pricing for ultra-short-haul delivery services | 21st Century Postal Worker

UPS Inc. and FedEx Corp. are offering a new type of pricing for deliveries within a 50-mile radius, according to a person familiar with the companies’ strategy, in a move designed to divert local “last mile” business-to-consumer traffic normally moving with the U.S. Postal Service (USPS).

Short-haul shipments delivered by the two giants would fall under a new “zone 1” rating, according to the person. UPS and FedEx would price those deliveries cheaply, largely because they wouldn’t involve the use of over-the-road, line-haul services that add to the carriers’ costs. The pricing has been made available to a select group of large customers that have requested it, according to the person.

The United States is divided into eight geographic parcel zones. Zone 8 represents the longest lengths of haul, and generally the most expensive pricing. UPS and FedEx offer “zone 2” rates, but those apply to deliveries made over longer distances that require a line-haul component.

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UPS, FedEx roll out pricing for ultra-short-haul delivery services – 21st Century Postal Worker.

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