Tuesday, December 8, 2009

The REAL Parcel Rate Increases for 2010

Don’t be fooled – 4.9 percent is just the start

UPS has announced their annual rate increase, with a straight 4.9 percent hike in ground service, and a 6.9 percent air and international increase offset by a 2 percent reduction in the fuel surcharge.

But when you look closer, the net cost increases for shipping parcels can be significantly higher. Additional fees known as accessorials are not included in the base rates, and these increases vary all over the delivery map. Many are unchanged or rise only nominally, but in some cases, Brown is going to town. Of course, FedEx’s charges essentially mirror those from UPS.

As one example, address correction charges for ground packages, $5 three years ago, will climb from $8 to $10 in 2010, effectively doubling in three years. Are you able to bump your fees up 25 percent in this economy?

It’s important to monitor your actual shipping cost, not just the base rate. Working with the right logistics provider can help you avoid unnecessary accessorial charges, and even mitigate those you can’t avoid. If you choose TOTALogistix as your supply chain partner, this is taken care of automatically as part of our service to you.

Just like in 2009, working with us in 2010 will save you money, not cost you money.


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