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.
. 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.
