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Brace Yourself: More Parcel Increases Ahead

Author pacejet on 2/6/15 6:49 AM

Earlier this week, UPS increased its fuel surcharge rates for its ground and air services. These increases range from 0.25% to 0.75%. FedEx followed, raising its fuel charges from 5.5 percent to 6 percent.

In addition to these increases, shippers need to be on top of all the other cost factors that go into getting packages out the door. The price of sending a package includes a bundle of smaller charges, many of which have gone up too. There are also fees for delivering to remote locations, so shippers have to be aware of the locations to which the are delivering packages.

The biggest increase comes from a new way of charging for smaller packages. Instead of charging by weight, shippers now have to count the size and dimensions of the package. So not only do shippers have to manage increases in fuel surcharges, consideration of package weight AND size need to be rolled into overall costs.

Even with standard increase in surcharges, there are ways that shippers can keep costs from affecting their bottom line:

  • Have other carriers fight for your business. Even though the more, well-known carriers impose standard increases, there are plenty of regional carriers that offer similar services at competitive costs. Feel like you're boxed in by the standard carriers you use? Consider your options (like Pacejet's comprehensive carrier network) and keep YOUR business competitive.
  • Know where your package is going. Don't have a clear idea as to if your package are going to a residence or business? Ensure you're using a shipping solution - like Pacejet - that uses address validation capabilities in order to prevent costs of returning a package.
  • Track your shipping data carefully. Shipping solutions like Pacejet track and manage all of the information that affect your shipping costs, like freight quotes, package size and weight.
Increases in fuel charges are an industry standard. But with an integrated shipping solution like Pacejet, you can stay on top of annual increases and other costs so you have better control of your shipping
Want to know more? Contact us at 877-722-3538 or send us an email.

Topics: Tips and Tricks, Articles, Strategy

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