Effective June 13, 2021, UPS will apply additional Peak increases to those international shipments originating in Japan destined to Canada. Previous increases, that were set to expire on June 12th, will continue to be applied on a per/pound basis. Depending on the service used, expect to see increases ranging from 67.6%-200% (on a per/lb. basis). All other previously announced surcharges will “continue until further notice”.
Although UPS did not take this opportunity to make changes to key Domestic Peak surcharges (as did FedEx several weeks ago), it is the collective wisdom amongst analysts that suggest additional hikes are on their way.
Specific details can be found at:
https://www.ups.com/assets/resources/media/en_US/2021_UPS_Peak_Surcharges.pdf
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Effective September 13th, Canada Post will increase rates to both Domestic, USA and International parcels. Increase ranging from 2.8% (US /International) to 3.5% (Domestic parcels only). Similar to both UPS and FedEx, other increases center around big, bulky and oversize packages flooding into their network.  Surcharges for Oversize/Unpackaged items will increase from $18 to $25 (38.8%) and Out-of-Spec packages will increase from $300 to $400 (33.3%).
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As a side note, any UPS International Mail Innovations or Purolator customers should expect to see increases to their bills as well. Since Canada Post makes many of the final mile deliveries for both UPS International MI and Purolator, rate hikes are typically treated as a “pass through” charge to the customer.

As always, the pricing professionals at AFMS pricing team will continue to monitor for any changes as they arise.

Effective June 13, 2021 until further notice, the amount of the Peak Surcharges applied to certain international shipments originating from Asia, including Japan will increase. All other previously announced Peak Surcharges will remain unchanged. 
Review a detailed listing of the applicable Peak Surcharges.
Peak Surcharges are subject to change and Peak Periods may be extended or otherwise changed. The latest information on Peak Surcharges will be available at ups.com/peaksurcharge.

FedEx remains inundated with elevated parcel volume stemming from continued online shopping resulting in longer delivery times, service blunders and upset customers. According to ShipMatrix, from March through mid-April, about 87% of FedEx Ground shipments arrived on time, compared with 95% for the similar service at UPS. 
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​UPS has once again reinstated its money-back guarantee after suspending the program at the beginning of the pandemic due to unexpected market changes. As a greater number of Americans began working remotely and staying home to reduce the spread of COVID-19, e-commerce has seen a major surge. Compared to the 13 billion parcels shipped in the U.S. in 2018, there were up to 14.7 billion parcels shipped in 2020. Amazon packages alone made up 1.9 billion of those parcels.

How will this impact businesses?

Because the pandemic is still continuing to impact transportation and delivery speeds, there's greater potential for businesses to file claims against carriers for late parcel shipping services. Even small percentages of late package deliveries could lead to hefty costs for UPS. It's for this reason that, as the pandemic continues, FedEx is still suspending its own money-back guarantee to prevent large charges for missing or late package claims.

However, UPS isn't reinstating the policy without a safety net of its own. UPS's reinstated policy only impacts its air delivery products, and the shipping carrier is extending the time frame in which its air delivery products are considered on time. Compared to the shipping carrier's previous deadline of 3 PM for its next-afternoon deliveries, the new deadline has been extended to 11:59 PM. In this case, businesses will still be able to file claims against UPS for late packages but the carrier has elbow room to make up for transportation and delivery delays due to the pandemic.

For businesses that rely on UPS's air delivery products, it's important to know how the new deadlines will impact the delivery of these products. Because next-afternoon air delivery products are commonly used by business-to-business customers, it's a good idea to plan ahead for an extra day to send documents and other B2B parcels. The new deadline also applies to UPS's next-day air products, which guarantees parcel shipping deliveries by 10:30 AM. The deadline will additionally apply to UPS's early morning air delivery products, which promise parcel shipping deliveries by 8 AM the next morning.

Keep an eye on your parcel shipping contract

With UPS reinstating its money-back guarantee program with a new deadline extension, it's important to make sure that your business isn't being taken advantage of. Approximately $2 billion in parcel shipping refunds and credits go unclaimed by U.S. businesses every year, and late parcel shipping not only affects your company's bottom line but also your brand reputation.

AFMS' parcel contract auditing and parcel contract optimization can help guarantee your business is getting the most out of its shipping contract. To learn more about how parcel shipping optimization and parcel shipping negotiation can benefit your business, contact AFMS today.

It's no secret that your company needs to be strategic when it comes to parcel shipping. After all, the U.S. is the biggest market in terms of parcel spending. Choosing the right carriers is essential to making sure you're not overpaying for parcel shipping costs.

However, your bottom line isn't the only thing you need to worry about when it comes to carriers. You also need to be concerned with brand reputation. Customers who receive late packages or don't receive their packages at all won't be shopping with your business again. That angry customers will be sure to leave a trail of bad reviews so other customers know not to shop with your business, either.

Regional Carriers Can Make Shipping Easier

Adding regional carriers to your shipping strategy is a great way to help make sure your shipments arrive when they should and your customers are happy. If you're not sold just yet, here are some advantages of adding regional carriers to your shipping mix:

1. You can save with lower transportation costs: National carriers are great when you need to ship your parcels to a general area, but you can save on transportation costs by using regional carriers once those parcels arrive. This is because regional carriers typically have greater flexibility in their delivery services and can deliver your parcels faster and more affordably.


2. You can better compete with Amazon: Competing with Amazon is challenging for a lot of businesses, especially when it comes to Amazon's two-day shipping. Using regional carriers as a part of your shipping strategy can help to cut down on shipping times so you can get your parcels to your customers within a competitive time frame. For instance, many national carriers like FedEx and UPS will offer two-day transit windows for parcel shipping by ground. However, regional carriers will offer overnight services.


3. You can save on accessorial fees: Accessorial fees can be extensive when you're using only national carriers for your parcel shipping. For regional carriers, DAS and residential surcharges aren't as high and may actually be nonexistent in some areas. The result is massive cost savings.

Whether you're using national or regional carriers or a mix of both, it's important to make sure you're keeping an eye on your parcel shipping contract. AFMS offers parcel contract auditing, parcel contract optimization, and parcel contract negotiation to ensure you're getting the best bang for your buck. For more information about our services, contact AFMS today.

According to NBC26, FedEx and UPS ship more than 34 million packages every day. All these items attract charges that range from a few bucks to hundreds of dollars. If you have a big shipment coming in through the usual carriers, here are must-know tips you can use to lower the applicable charges.


Top Surcharges Have a Great Impact on the Final Sum

In many cases, surcharges can be reduced if you make a compelling case to the shipping agent. Generally, it’s easier to negotiate on some surcharges rather than others. For example, residential and common fuel charges are unlikely to be scrapped because they are based on the distance of the shipping.


Discounts and Incentives are Better than Value-Added Services

Incentives are greatly helpful and should be used, especially when you want to make claims for incorrect dimensional weight charges. If the shipping agent insists on their value-added services, make it clear that you appreciate the kind offer but are looking for discounts on the full parcel shipping contract.


Service Refunds Make Shipping Less Risky

What really sets a shipping company apart from the competition is the refund policy. If you are going for the top brands, it helps to compare the terms. In many cases, companies that have invested heavily in protecting your shipping and reducing errors will have better refund terms.


Be Bold Enough to Negotiate

Knowing how to negotiate for cheaper or friendlier terms when shipping is a valuable skill that will serve you well. Shipping contracts will determine whether you can claim refunds or discounts for inconveniences such as incorrect dimensional weight charges or delays in package arrival.


With at least 2,760 packages being shipped every second, you want to protect your packages at the cheapest costs possible. Learning some negotiation tips will help you secure the best contracts especially if you are a regular customer or tend to move expensive merchandise.


Contact us today if you are looking to learn more about parcel contract negotiation.

The global parcel shipping industry is experiencing a transformation as e-commerce and online services rush to adapt to changing consumer needs and behavior. In the last decade, the global parcel volume has more than tripled. In 2019, the parcel volume reached 103 billion parcels, up from 87 billion units delivered in 2018.


The Prices Also Shifted

For 2021, most traditional carriers have already announced their General Rate Increase (GRI). FedEx announced a 4.9-5.9% increase for 2021. USP announced a similar rate of approximately 4.9% increase. Additionally, there are extra surcharges placed on some shippers.


With the tumultuous year that 2020 has been, the expanding costs of parcel shipping may continue to challenge companies that are fighting for survival in these tough times. However, you do not have to let your carrier's GRI dictate your budget in its entirety. You can seek parcel shipping contract negotiation support that can help you save more money.


Optimizing Your FedEx and UPS Rates

Firms such as AFMS continually track and analyze the market changes to better serve you in getting your carrier GSR waiver. Parcel contract auditing, negotiation, and optimization can help save your company's bottom line. Here are three tips to help you save more on your parcel shipping costs.


1. Understand Your Data

You may need to sit down and pour over your data to familiarize yourself with the numbers before heading out for the parcel contract negotiation. With a variety of hidden fees and discounting options, staying informed about your shipping profile can help you have the upper hand as you negotiate with the carrier's rep. Understand your weekly package volume, the average cost per package, the average time in transit, and service type mix (LTL, FTL, ground, express, etc.)


2. Craft A Plan of What You Wish to Achieve with the Optimization

You may need to come up with a plan that will help you save money. It would be in your best interest to bring in parcel shipping consultants such as AFMS to help you craft a strategy to achieve your optimization goals. Their carrier reports can help even the negotiation playing field, allowing you to double on your discounts. You can identify 5 or 7 points of optimization that you wish to achieve and understand their impact on your shipping costs. Remember to focus on the bigger picture, the overall impact of the contract rates.


3. Talk to Multiple Shipping Carriers

FedEx and UPS are the two most popular carriers in the US. It is always smart to speak to smaller parcel shipping companies and understand their rates and services. Find out how they can meet your company's needs and those of your customers. You may need to negotiate the best deal as a shipper, and carrier pricing experts such as AFMS can help you achieve it.

With UPS and FedEx announcing a General Rate Increase (GRI) for 2021, it may be time for your business to consider entering into a new parcel contract negotiation to determine the best possible shipping rates. Unfortunately, your parcel shipping contract may not be as cost-effective as it could be: it is estimated that over $2 billion in credits and refunds go unclaimed every year by businesses in the United States.
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The best way to ensure you are receiving the best available shipping rates for parcel contract optimization is to be informed of all the options available to you and your business. Below are some items to bring to the table for negotiation support when you are looking to settle the best possible parcel shipping contract.

Parcel Contract Auditing
Parcel Contact Auditing is a great way to analyze your shipping contract before a parcel contract negotiation. Audits are in-depth reports that have the potential to save you big money on shipping costs. These audits, when performed by experts, can determine whether or not your shipping company is charging the correct rates, your eligibility for a guaranteed service refund (GSR) or GSR waiver, potential billing inconsistencies, and recovery of funds for items lost during shipping. A line-by-line analysis of your shipping contract by an expert is the best way to gather important information before a parcel contract negotiation.

Negotiation Support Through RFI and RFP
It is essential to have as much information as possible during a parcel contract negotiation. This is where a third-party pricing expert may be useful in offering negotiation support. Using a request for general information (RFI) or a request for proposal (RFP), a third party may be able to assist you in developing a strategy for information gathering.

For example, an RFI can be useful because it presents facts and essential information from a shipping carrier such as basic products, services, costs, and approaches to the marketplace. An RFP can also be an important asset to a parcel contract negotiation because it is more specific than an RFI and may rely on the carrier to provide alternative solutions to your company and its shipping needs.

Parcel Contract Benchmarking
Benchmarking studies can also be an important asset when negotiating a parcel shipping contract. A detailed benchmarking study can be undertaken by a third party to determine if any savings opportunities are available to you. Benchmark analyses can also be beneficial in other ways as they can also identify whether or not you are eligible for certain discounts on your shipping rates, and also compare your shipping costs to other similar businesses in the marketplace. A detailed benchmarking study completed by a third party expert is an essential tool to your parcel contract negotiation because it contains valuable, in-depth information that can ensure you receive the best shipping rates when negotiating your parcel shipping contract.

When entering into parcel contract negotiation, it is important to be in possession of as much information as possible. A third-party expert can help you and your business perform analyses such as benchmarking studies and parcel contract auditing that give you a better understanding of your current contract—and how it can be improved.

Additionally, an RFI and an RPF can be useful ways to gather information from the carrier themselves such as how they operate, what they offer, and what they can do for your business. Information is the best tool for a successful parcel contract negotiation, make sure your business is armed with the most informed and detailed material available to ensure you are guaranteed the best shipping rates possible.