A Carrier Rate Comparison Can Uncover Hidden Saving Opportunities | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) A Carrier Rate Comparison Can Uncover Hidden Saving Opportunities ================================================================= ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)March 09, 2016 When it comes to small parcel shipping, most shippers face the choice of choosing to ship with FedEx or UPS. Many shippers feel pretty strongly (usually based on a prior negative experience) that the service of one carrier is better than the other. On the other hand, some shippers remain relatively neutral in comparing UPS and FedEx service levels. These shippers can typically approach a [carrier rate negotiation](https://www.lojistic.com/rate-optimization-rfps) largely based upon price, which the carriers hate, and in turn can give the shipper a significant upper hand. When [comparing UPS and FedEx rates](https://www.lojistic.com/shipping-analytics-software/shipping-cost-comparison) it is *not* accurate to just evaluate each carrier’s incentives and discounts side-by-side. A 50% discount from one carrier may result in a different net charge than a 50% discount from the other since the carrier’s tariff and fee schedules can vary. To be sure you accurately determine the difference between UPS and FedEx rates it’s super important to compare actual net costs after applicable discounts, incentives, and/or rebates. Here are a few best practice suggestions to take to heart: - When conducting a UPS vs. FedEx rate comparison it is important to evaluate net costs NOT discount percentages. Make sure you are using the correct tariff. - When negotiating with FedEx and UPS do not rely solely upon their own summary assessment of their pricing proposal. Use your own analytic tools or bring in an unbiased third party to help quantify and validate their numbers. - For general transportation rate comparisons there are free online tools like the FedEx & UPS Rate Comparison Tool. - Reach out to a third party professional for a highly detailed, in-depth analyses of UPS and FedEx rates, fees, discounts/incentives, and overall contract structure specific to your business. An in-depth analysis of your current carrier rates and discounts no doubt has the ability to uncover the potential for savings. Carrier surcharges and indices are ever-changing, so keeping abreast of these changes and constantly checking and double checking what the other carrier offers can prove to be a worthwhile endeavor. Since we’re pretty awesome, we offer a free online [FedEx & UPS Rate Comparison Tool](https://www.lojistic.com/shipping-analytics-software/shipping-cost-comparison) that provides businesses with a useful resource to evaluate carrier rates (gross and net) and run “what if” scenarios. Our radical team of experts can also help conduct a more comprehensive rate comparison that takes into account surcharges, accessorial fees, and any other variable. Pricing dynamics in the world of small parcel shipping are constantly changing. We’ve helped hundreds of companies increase profitability through solutions that reduce shipping costs. Give us a call to learn more. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. 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