2012 UPS and FedEx Rate Increase Analysis


2012 UPS and FedEx Rate Increase Analysis

UPS and FedEx announced their January 2012 general price increases (GPI). Why is this important? For any company that ships parcels, the GPI will affect your overall shipping costs! As the 2011 GPI showed, there can be substantial impacts on shipping costs resulting from changes to accessorial charges and dimensional weight formulas. The 2012 increases are only announced as averages and can vary greatly from one shipper to the next. Here are a few ways to prepare:

BEST PRACTICES SUGGESTION:
-Before the 2012 UPS and FedEx rates go into effect, all shippers should analyze the cost impact of their respective carrier’s GPI by looking at their historical and anticipated shipping levels and characteristics. If there is an opportunity for you to improve your discounts and rates, you should look into negotiating with your carrier before the rate increase occurs.

-Implementing these plans can require a lot of your time. Using a third party, like Source Consulting, can help you accomplish these best practices and more. Source is made up of former UPS and FedEx employees that are equipped to help you understand the complex carrier contracts. The company is currently offering a free 2012 UPS and FedEx rate analysis specific to your business. Contact us for more information.