What can Brown do to you?

With business activity, fuel prices, and competition in the parcel business all way down, guess what’s UP?

You guessed it – small package rates. UPS and FedEx have announced their Christmas presents for their customers, and it’s the same as last year – rate increases. The overall increases for both carriers are 5.9% for ground and 6.9% for air, but the devil is in the details. For many shipping zones, increases will be substantially higher.

And Brown is going for the gusto with assessorial charges. After jumping address correction charges 20% last year, UPS is raising them an additional 33% for 2009, from five dollars last year to eight dollars a pop next month. These maddening fees could be seen as nickel and diming, but the overall numbers are in an altogether different league: the Big Two make approximately 33% of their total revenue from assessorial charges, netting them billions of dollars – your dollars.

To fight back, you need to be sure that you are shipping smart, taking advantage of every possible discount, and using the carriers’ (very complex) rate and service guides to trim your package costs wherever possible.

Do you know where to start?

TOTALogistix
www.totalogistix.com 
800-989-0054 x103

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.



TOTALogistix
www.totalogistix.com
800-989-0054