In 2018, approximately 13 billion parcels were shipped in the United States. With shipping rates set to increase in 2021, the cost of shipping these millions of parcels is set to go up significantly for you and your business.

The FedEx and UPS General Rate Increase (GRI), may have a significant impact on the shipping industry moving forward. This is why it is important to consider employing a third party pricing expert to determine the best available shipping rates for your business. Below are the best reasons to use a third party with inside pricing knowledge to assess your pricing needs—and find you the most cost-effective solutions.

Benchmarking
A third party pricing expert will be able to find you the best pricing opportunities for your shipping needs. Benchmarking studies can determine any possible savings opportunities, review your current shipping carrier discounts, and ascertain if your current rates are in line with other businesses with similar shipping needs. These benchmarking studies will ultimately benefit your current parcel shipping contract because they can offer informed and detailed information. These analyses also serve as data for negotiation support when you want to compare rates and consult with shipping companies to develop a new parcel shipping contract.


Experience and Expertise
Third party pricing experts must have the necessary expertise to conduct the studies mentioned above. This is why it is essential to choose a company that has experience in consulting, pricing, logistics, and expert knowledge of the shipping industry and markets. An experienced pricing expert will not only offer detailed, fact-based benchmarking studies but also negotiations support to ensure you get the best shipping rates based on in-depth analysis of shipping invoices and data.

Big Savings
The ultimate objective when consulting a third party pricing expert is to save you money. This is not only done through benchmarking, analysis, and negotiation, but through parcel contract auditing. Parcel contract auditing assesses your current costs and determines whether you are overspending, eligible for any discounts or a guaranteed service refund, or if there are any invalid/fraudulent charges on your account (to name a few). These reports are an essential part of the process, and, when coupled with parcel shipping contract benchmarking, can ensure that you get the most optimal contract available.

Shipping costs account for a large part of your business overhead, so it important that you determine whether you are receiving the best possible rates. A third party pricing expert can help with an informed analysis of your current parcel shipping contact, performing detailed benchmarking studies and audits that evaluate your current spending to determine the best possible rate. By offering negotiations support, thorough assessments, experienced and expert advice, and opportunities for potential service refunds, third party pricing experts are the answer to all of your shipping needs—improving your business, and your bottom line.
​

Rates in the $320-to-$360 billion truckload market will continue their sharp rise this year because of surging demand in some sectors to replace depleted inventory as well as sharply rising costs for carriers.
Read the original post on Logisticsmgmt.com

By John D. Schulz · February 15, 2021Rates in the $320-to-$360 billion truckload market will continue their sharp rise this year because of surging demand in some sectors to replace depleted inventory as well as sharply rising costs for carriers.
That’s what leading TL executives and analysts are telling LM as they assess the freight market’s largest sector this year. ​

FedEx, announced additional changes to their 2021 lineup of surcharges on January 15th. The changes will apply to larger volume, or “Enterprise” type shippers, and E-commerce on February 15, 2021.

While the latest set of carrier charges should not be an epiphany to anyone within the shipping community, they can pose significant challenges for some customers. Especially, after what shippers had to endure in 2020. Clearly, all carriers have established a pattern. Many deploying a strategy that is designed to assist in “hedging” for the rising costs of an expanding E-Commerce marketplace, stem the tide of continued constraints on network capacity, as well as protect shrinking profit margins. FedEx, UPS, and the USPS have all made a concerted effort to charge more for the same packages. Levying a series of charges and fees that started back in the Spring of 2020 applied to shipments travelling through their ecosystems.

Good news is that AFMS has been working behind the scenes to assess the impact of all these increases to companies like yours. Don’t’ simply accept these charges without understanding their impact and if you can have these charges reduced or even waived. Given the fact that nobody really knows which of these line items may become “permanent” and that many of these fees are negotiable, a wrong decision could have costly long-term effects. 

Federal Express
Any FedEx shipper who averages 30,000 packages per week starting January 4th, 2021 will be expected to pay an additional $.30 per/pkg. that will be applied to both Express and Ground Residential packages beginning February 15th, 2021. FedEx SmartPost and One Rate Services are exempt.

When one considers the previously announced 2021 Express/Ground Residential GRI and adds it to this latest surcharge, shippers could be looking at impacts ranging from 12.51% (Express Delivery Residential Surcharge) to 15.64% (Home Delivery Residential Delivery Charge) when compared to 2020.

While we mentioned the reshuffling of both carrier’s DAS zips (back in December), FedEx has re-arranged their DAS lineup. Making up for lost time by adding and shifting zip codes to gain parity with UPS. While from a pure numbers perspective this may be true, there are “unique” zip codes that add to the dynamics of these changes. Making it increasingly important to understand the differences between these two carriers. (see table below).

United Parcel Service
Although UPS announced late last year, that they would be re-instating Pre-Peak surcharges, many Peak surcharges were set to either expire (most on January 16th, 2021) or go “until further notice”. UPS has effectively given notice and extended several pertaining to certain Ground Residential, SurePost, Additional Handling and Large Packages.

Effectively re-setting the clock…
Peak Surcharge – Applied to UPS® Ground Residential and UPS SurePost® Packages
A Peak Surcharge will apply to certain UPS Ground Residential and UPS SurePost packages, for all U.S. domestic shipments, for qualifying customers who have shipped more than 25,000 packages during any week following February 2020. The Peak Surcharge will apply in the amounts set forth below to the indicated service levels during the specified Peak Period. Service Levels Peak Period: January 17, 2021 until further notice UPS Ground Residential $0.30 per package UPS SurePost $0.30 per package

Peak Surcharge – Applied to Additional Handling and Large Packages
A Peak Surcharge will apply to packages that require Additional Handling and Large Packages, for all U.S. domestic, U.S. import, and U.S. export shipments, for qualifying customers who have shipped more than 1,000 total packages, or more than 10 packages that require Additional Handling or Large Packages, during any week following February 2020. The Peak Surcharges will apply in the amounts set forth below during the specified Peak Period. Other Charges Peak Period: January 17, 2021 until further notice Additional Handling $3.00 per package Large Package $31.45 per package

AFMS will continue to monitor and provide updates to our customers as changes become available.

​Contact AFMS for a detailed analysis of how these changes can affect your organization at 800-246-3521 or visit us at www.afms.com.

An erratic peak season gives way to the proliferation of same-day logistics startups and an emerging new hierarchy among shippers.  

On Monday January 25th, UPS announced that they have entered into an agreement to sell UPS Freight (UPSF) to TFI International (NYSE and TSX: TFII) for $800 million in a deal that’s expected to close during the second quarter of 2021.
In a press release, UPS Chief Executive Officer Carol Tomé commented that “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.”
Transaction Highlights

• Includes UPS less-than-truckload (LTL) and dedicated truckload businesses
• Expected to close during the second quarter of 2021

UPS (NYSE: UPS), has entered into a definitive agreement to sell UPS Freight (UPSF) to TFI International Inc. (NYSE and TSX: TFII) for $800 million, subject to working capital and other adjustments.
“We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc.,” said UPS Chief Executive Officer Carol Tomé. “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.” 
The decision to sell UPS Freight was reached following a thorough evaluation of the UPS portfolio, and aligns with the company’s “better not bigger” strategic positioning.
UPS and TFI International will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipments, for a period of five years.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during the second quarter of 2021. UPS expects to recognize a non-cash, pre-tax impairment charge of approximately $500 million on its statement of consolidated income for the year ended December 31, 2020.
With an operating history of over 85 years, UPS Freight is one of the largest LTL carriers in the U.S., offering a full range of regional and long-haul solutions and an on-time delivery guarantee for all LTL shipments and is headquartered in Richmond, VA.
AFMS continuously tracks and analyzes these important market changes ensuring our customers understand these changes and how they may be impacted.  Contact AFMS today for no cost evaluation and get a better understanding for your company. 

Read this article on the site it originally appeared.
​On a sequential week-over-week basis, it would appear that FedEx Corp. (NYSE:FDX) and UPS Inc. (NYSE:UPS) are holding their own in delivering holiday packages on time. Year-over-year, as might be expected, is a different story.

2020 has brought so many surprises, but late holiday presents don't need to be one of them! Follow these guides from the largest shipping carriers to make sure your loved ones get their gifts on time.

Did you know that more than $2 billion, in the form of refunds and credits, are unclaimed every year by U.S. businesses? This means that it is especially important to be aware of parcel shipping costs and how your carrier could be impacting expenses. From UPS refunds to avoiding GSR waivers, you should always make sure to stay up-to-date on ways to save. Keep reading to see some of the top ways to negotiate shipping rates with FedEx and UPS in 2021.

Did you know that every single second, approximately 2,760 packages are shipped? With ever-increasing parcel shipping, it has never been more important to stay up-to-date with parcel pricing and have reliable and easy-to-use parcel contract optimization. Recently, FedEx announced that service levels will soon increase, beginning in early January of 2021. Keep reading to find out about all of the changes underway.

United Parcel Service unleashed their 2021 General Rate Increase on Friday, October 29th. Overall, UPS Ground, Air and International rates, will increase an average of 4.9%. Remarkably similar to increases set by FedEx last month. Accessorials, fees and surcharges will see an increase of 4.84% -9.82%. While base freight rates mirror last year’s rate increase of 4.9%, Accessorial fees and surcharges will continue to add to the company’s coffers. SurePost service increases have yet to be posted.
For all the details around the UPS 2021 Rate Increase announcement. Click here (AFMS White paper & analysis)