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Articles & Tips

Negotiating UPS & FedEx Shipping Contracts

7/16/2018

 
PROCUREMENT SOLUTIONS FOR TRANSPORTATION
​By Mike Erickson, CEO - AFMS Global Transportation Consultants
Several years ago, there were three full service carriers offering ground, air, hundredweight, and international services.  FedEx and UPS are currently the last two carriers still servicing the entire U.S. with time definite deliveries. Both offer the same type of services and compete for the same clients.  Five years ago, there were over 50 accessorial charges with the two major carriers. Now, there are over 200!  The carrier’s new data capture technology has allowed them to more effectively charge accessorial charges that they physically couldn’t in the past...

How do you find what the market price is for your company? Before a shipper even starts to sit down and negotiate with potential carriers, a company needs to thoroughly analyze its shipping volumes and data as well as take a close look at its own shipping needs. You should benchmark your rates against the market to see where you stand. Contact a company like AFMS, to benchmark and evaluate your agreements.
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