Date:         Sun, 7 Jan 2001 17:56:36 -0800
Reply-To:     Bill Davidson <wdavidson@THEGRID.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Bill Davidson <wdavidson@THEGRID.NET>
Subject:      Consumer Reports evaluates shippers... long
Content-Type: text/plain; charset="iso-8859-1"

 WE SENT 838 PARCELS ALL OVER THE U.S. SOME WERE LATE, SOME WERE ABUSED,
SOME VANISHED

Uniformed troops; air forces; heavy vehicles; darkened rooms where logistics
experts huddle over banks of computers, devising strategies to cope with
balky jets or surprise storms . . . Package delivery is war--or at least
pretty serious stuff, especially at holiday time.
Three giants--Federal Express, United Parcel Service, and the Post Office
(officially, the U.S. Postal Service)--compete in the $70 billion business
of moving "expedited cargo": parcels and papers that must arrive fast. FedEx
promises you "The World On Time," and UPS vows to keep "Moving at the Speed
of Business." The Post Office says simply, "We Deliver for You." And so it
does, 630 million pieces of all kinds of mail daily, more than 50 times as
much as UPS, its nearest competitor. All three want your gifts, and each
offers myriad ways to send them, along with myriad prices, depending on
weight and sometimes on distance and package dimensions (see Your mailing
options).

Which carrier is most reliable, particularly during the holiday crunch? To
find out, we asked 94 Consumer Reports shoppers to ship each other 838
six-pound, 12 x 10 x 3-inch parcels late last December. They used FedEx,
UPS, and the Post Office for standard overnight air and second-day air; UPS
and the Post Office for ground delivery (FedEx has no ground service). A
word about the Post Office: It says Express Mail will arrive overnight in
most of the U.S. but may take longer to get to out-of-the-way spots. We
scored Express Mail as an overnight service, counting only those packages
sent to destinations the Post Office told us qualify for overnight service
(about four out of five of the addresses in our test). And although the Post
Office calls its Priority Mail a two- to three-day service, its ads compare
it with the other two-day services. So did we. (For more on Post Office
claims, see FedEx sues the Post Office.)

We also assessed how gentle the couriers are: Inside each package, we placed
sensors that change color when subjected to a sizable jolt (see photo). The
results are detailed in the Ratings.


Snug as a bug? Each of our six-pound test boxes held a ream of paper,
nestled in cardboard and bubble wrap, along with sensors that turn red (see
close-ups above) when a package is handled roughly. The roughest ride: FedEx
2Day. At least one sensor was triggered in one-third of its packages.

Among our findings:

Air delivery by the private couriers was on time most often. About 97
percent of FedEx's packages arrived on time, with UPS not far behind.


One service, FedEx 2Day, roughed up packages much more than others,
including FedEx Overnight. Had we shipped glass plates via FedEx 2Day, some
might have broken.


Of the ground services, Post Office Parcel Post is almost always cheaper
than UPS Ground and was on time almost as often (but Post Office guidelines
often allow a day or two more than UPS to cover the same distance).


Think twice before using shipping stores like Mail Boxes Etc. They'll pack
for you, which can be convenient, but even when they don't, they may charge
up to twice the carriers' rates.

How fast?

Almost all parcels going by ground left senders' hands Wednesday, Dec. 17,
1997. Most of those shipped via second-day air left Monday, Dec. 22; most of
those shipped via overnight air left Tuesday, Dec. 23. One-third were headed
to addresses fewer than 500 miles from the sender; another third went 500 to
1,000 miles; the rest, more than 1,000 miles. Our aim was to get all
packages to the recipients before Christmas Day. Most made it on time, but
there were differences among shippers and services.

Overnight air. Did the parcels sent overnight really arrive the next day?
They did for 97 percent of FedEx packages and 94 percent of UPS packages.
The Post Office lagged far behind: Its Express Mail packages arrived
overnight to guaranteed destinations only about 65 percent of the time.
Express Mail does have one advantage, though--it's delivered 365 days a
year. Overnight competitors deliver on Saturday, but only if you pay extra.

Second-day air. Cheaper than overnight and faster than ground delivery over
long distances, this can be a good compromise. FedEx led the pack, with 97
percent on-time performance vs. 90 percent for UPS. Each company actually
delivered about 12 percent of its second-day boxes overnight.

Post Office Priority Mail costs far less than the others--$3 to send a
two-pound box coast to coast, with no extra charge for Saturdays, vs. at
least $10. Its business grew 15 percent this year, perhaps a legacy of last
year's strike against UPS. (The strike was settled well before our tests.)
However, only 60 percent of all packages sent via Priority Mail got to
recipients in two days; for the longest distances, the figure dipped to 35
percent.

Ground service. All but a dozen or so of the more than 200 boxes sent via
ground arrived by Christmas Eve. UPS Ground is a slightly better bet than
Post Office Parcel Post: 78 percent of UPS packages arrived by their due
date (one to seven days after shipping, depending on zip code), vs. 73
percent for the Post Office (two to nine days, depending on zip code). But
the Post Office is apt to charge a few dollars less per package, and it
delivers on Saturday (UPS charges extra).


How gentle?

Speedy shipping is no advantage if the crystal vase you send Aunt Tillie
arrives in pieces. Careful packing is key because shipping can be rough.
(See Pack like the pros.) On tours of Post Office, UPS, and FedEx
facilities, our reporter saw many boxes that were dented, bashed, even
gashed.

To see whether one method of travel was gentler than another, we placed
shock sensors inside each parcel. If a box the size and weight of our test
parcel--and packed like ours, in bubble wrap, cardboard, and a corrugated
box--is dropped from a height of seven feet or more, or subjected to similar
forces, the sensors change from clear to red. A similar fall would be likely
to crack a glass plate surrounded by one layer of bubble wrap and packed in
a corrugated box.

In all three service categories we looked at, the Post Office proved
gentlest. On the other hand, FedEx 2Day fell down on the job. At least one
sensor was set off in more than one-third of the parcels we sent using that
service--about two to four times the rate for most of the other services.

When we asked FedEx recently about any differences in handling second-day
shipments, a spokeswoman said all packages are treated equally, and that
FedEx won't release any data on complaints related to rough handling.
Earlier, a company executive had told us that FedEx 2Day shipments travel in
a different stream from overnight parcels and may be trucked farther. Such
boxes move through the sorting hub during the day and are handled by
different staffers. And, of course, second-day parcels stay in the FedEx
system twice as long as overnight shipments, with greater potential for
damage.

Whatever the carrier, does it pay to mark boxes "Fragile--Handle with Care"?
Nope. We plastered that label on almost 100 parcels, and it helped not one
whit: Sensors in "Fragile" boxes were as likely to be activated as those in
identical packages without the label sent at the same time by the same
service. Putting the address label on top, not the side, can improve the
odds that a parcel will be kept upright when put on conveyors, though it's
no guarantee.


How easy to send?

There are 38,000 post offices, far more than the locations private couriers
operate themselves. But private couriers also offer drop boxes (mainly for
businesses with accounts) and are affiliated with thousands of outlets that
take parcels--some Kinko's copy shops, for example, as well as shipping
stores.

Our senders drove some packages to the courier's counter, took some to
shipping stores, and called couriers to pick up some at home. (Couriers'
toll-free lines and web sites, which offer extensive information on drop-off
locations, daily deadlines, expected transit times, and cost, are listed in
the Ratings.)

Counter service. Going straight to the courier is the least expensive way to
get a box into its system. On balance, at least two-thirds of our senders
judged each courier's operation very efficient, and four out of five
described employees as very courteous. At FedEx and UPS, most senders waited
only two minutes for service; at the Post Office, most waited at least five
minutes--and one steadfast individual waited an hour and a half.

At-home pickup. Each carrier has its own rules:

FedEx charges $3 per box for a pickup and takes credit cards, checks, and,
in some places, exact cash.


UPS charges a premium of between 50 cents and $2.50 per box, depending on
weight and destination. You must pay by check.


The Post Office will pick up any number of packages for $4.95, paid by
check. You must have postage affixed.
Any of the couriers may come the day you call, if you've called early
enough, but it's safer to call a day before. You may not be told just when
the driver will arrive--or you may be given a window of two or three hours.
Weigh and measure the package before calling, and ask that the driver bring
necessary forms and labels.

Shipping stores. They offer various mailing options, sell wrapping
materials, and will pack for you. But convenience costs. Our senders who
used stores sometimes paid double a courier's rates. A Pak 'N Mail in
Houston, for instance, charged one shopper $17.27 to ship an already-wrapped
test box to Fort Worth via UPS 2nd Day Air; UPS charges $9.50 for that
service if you deal with it directly. Before you go to a shipping store,
contact the courier to determine the basic cost to send your package
directly.

If you do use a shipping store and your parcel is damaged or lost, the store
may help you file a claim. Some stores take responsibility for damage if
their workers packed; some have you sign a release relieving them of
liability if you packed. In any case, you can file a claim against the
carrier.


How easy to receive?

We had our packages sent to people's homes (only the Post Office will
deliver to a P.O. box), and most recipients were home to receive them.
Companies vary on the number of delivery tries they'll make when the
recipient is out, and on whether they'll leave packages on the doorstep.
Often, drivers can decide. When couriers can't find you, they'll generally
leave a note detailing the attempted delivery and asking you to
reschedule--or telling you when they'll try again. When you call back, you
may be given the option of retrieving your package from the terminal. You
can also ask if the shipper is willing to reroute the parcel to your office.

Although FedEx was most likely to hand packages to the recipient, it did
leave about 8 percent of them unsigned for and unattended. (Its standard
airbill says the recipient must sign for the delivery unless the sender has
checked a box waiving a signature. Our packages had no such waivers.)

Other carriers also seem to relax the rules at this time of year, which may
not be a good idea. When we sent packing material to a test participant in
Ohio, for example, UPS left our box on his back porch, which he seldom uses.
The box was soaked by the time he came across it days later.


How do they handle problems?

There are a few procedures to know about if delivery doesn't go smoothly:

Guarantees. The private air couriers offer a money-back guarantee if they
don't deliver on time. The Post Office has a similar guarantee for Express
Mail to most of the U.S. (contact the local post office or call 800 222-1811
to see whether your destination is included and to determine the drop-off
deadline). Weather-related delays void guarantees. Generally, the sender
applies for the refund.

Last spring, UPS began to guarantee on-time delivery for its ground service,
but only to businesses. Consumers qualify if they send packages to the
recipient's workplace, and they'll get commercial UPS Ground rates: $1 less
per package than to a residence.

Missing packages, tracking. Eight of our 838 boxes never showed up. Three of
the lost boxes were carried by the Post Office, five by UPS (and three of
those started their journey at a shipping store).

With parcels sent via FedEx, UPS, or Post Office Express Mail, you get a
tracking number that matches the bar code on the label: You can phone the
courier or use its web site for information on your parcel's whereabouts.

With Post Office Priority Mail and Parcel Post, there is no record. The U.S.
Postal Service promises computerized "delivery confirmation" for those two
sometime in 1999. Until then, if a Priority or Parcel Post package is lost,
it's lost. But insuring whatever you send via those services forces the Post
Office to keep a record (you'll pay $1.60 for $100 of coverage).

Insurance. Shippers were reluctant to talk to us about loss and damage
rates. If you receive a damaged package, note that fact on any paperwork
before you accept it. Keep the packing material; it's needed for a claim.

FedEx and UPS rates include $100 of coverage against loss or damage, and
Post Office Express Mail comes with $500 of insurance. All three couriers
sell extra coverage at nominal cost, but don't be tempted to overinsure: If
you file a claim, you'll be asked for receipts. For used items, you'll
likely recover the depreciated value, not the replacement value.


Recommendations

In a rush? Federal Express has the most reliably on-time overnight and
second-day air service. (Note, though, that in October, the leaders of its
pilots union voted to seek strike authorization from members, which could
mean a walkout during the holiday rush. Balloting of members was due to be
completed by late November.)

Though fast, FedEx was rough with second-day packages. If you use FedEx
2Day, pack very well. UPS Next Day and 2nd Day were slightly slower but
gentler. Even UPS Ground was able to get some short-distance boxes to their
destinations in one business day.

The Post Office's air-service rates are attractive, but if you send gifts a
day or two before the holidays, don't count on Express Mail or Priority Mail
to deliver them in time.

Have plenty of time? If you can send packages at least seven business days
ahead, try ground shipping. It costs much less than overnight air service.
Post Office Parcel Post is even cheaper than UPS Ground, but UPS tracks
packages and so provides a record for those that never arrive.

Another option, especially for long distances, is Post Office Priority Mail.
It may not be great as a second-day service, but it's apt to be faster than
Parcel Post and may cost just slightly more.

Have a fragile package? For each of the services we tested, the Post Office
was gentlest.



. Ratings
. Pack like the pros
. Behind the scenes
. Your mailing options
. FedEx sues the Post Office

Copyright © Consumers Union of U.S., Inc., 1998