FedEx Additional Handling: What is it and how is it affecting me? As most people reading this article already know, small parcel carriers tack-on a number of additional surcharges on top of the rates charged to ship packages.  In a review of nearly 5 million packages across a sampling of our clients, surcharges amounted to
While just an opinion, if I had to guess I’d say that peak season surcharges and other newly instituted charges are not going anywhere soon; nor is the practice of routinely instituting new surcharges. Let’s first consider UPS. For starters, on their Q3 2021 earning call, they stated that they made an additional $550 million in
2021 to 2022 ups general rate increase
UPS has announced their annual general rate increase (GRI) of 5.9% effective December 26, 2021. This mirrors the FedEx GRI announcement from September 20th and is 1% higher than previous years. While carriers have announced an increase of 5.9%, total costs will likely rise more than 5.9%. This is largely because the 1-5lb rates are
How do you lower your small parcel rates? Negotiations with the carriers can be a daunting task. However, strategies do exist to help ensure that your organization can secure the best small parcel pricing possible. This article seeks to lay out some of those strategies and also provides some observations to help your company put more
Have you ever wondered how FedEx and UPS can sign an agreement with you that states the following? “FedEx agrees to provide Services to Customer at the pricing and on the terms as set forth in the applicable pricing attachments.”   “UPS will provide the pickup and delivery services (“Services”) as set forth below subject to
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Are Long Term Carrier Agreements A good Idea? Many companies think long-term vendor contracts are the best approach for their organizations and a number of arguments exist that support this position. However, and especially as it relates to small parcel shipping, a long-term contract isn’t always the best option. This article addresses these differing positions as it
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“There’s no guarantee that Amazon.com can be a successful company. What we’re trying to do is very complicated,” said Jeff Bezos in 1999, just five years after launching the online firm. That the firm’s founder was so uncertain of its future seems surprising. Today, 25 years on from when it started, Amazon is one of
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