If you haven’t heard yet, FedEx announced a mid-year rate increase by 6.9% on July 9th, 2012. This rate increase is not uncommon, happening already at the beginning of the year with rate increases from both major carriers. However, the question that is sure to appear on many people’s mind is how this rate increase will affect their business. In past years, these rate increases heavily affected such elements as accessorial charges, making businesses pay a substantial amount more for the same amount of shipping. Here are a few tips to prepare your business for the impending changes and to possibly reduce your shipping costs instead:
One of the first moves you’ll most likely want to make is to check how the rate affects your current shipping. An important note is to make sure you aren’t just basing your analysis on applying the rate increase to your current shipping costs. You’ll want to look at your historical and anticipated shipping volume and characteristics to best figure out the impact the rate increase will have on your overall costs.
This rate increase is also a great time to conduct a great carrier rate comparison to see what opportunities may lie with others. If either the comparison or rate impact showcase a margin of opportunity for discounts and incentives, your business should consider starting a negotiation with the carrier before the rate increase begins. In this way, your new shipping costs will be set without any hassle when the change occurs.
Source Consulting is ready to help your business prepare against the forthcoming rate increase. With an experienced staff of former carrier employees and the latest technology to help compare rates easily and quickly, Source is ready to help you reduce your shipping costs and prepare for the upcoming rate increase with precision and ease.
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.