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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) UPS Contracts: Latest Important Updates Noted for 2019 ====================================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Bryan Van Suchtelen ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)February 21, 2019 UPS Contracts: Changes to Know ------------------------------ UPS contracts changed in 2019. I would say some of the most notable impacts have been in some of the surcharges. So, in 2018, UPS took a massive increase in their over-max fee. That's when you're shipping very large packages, whether it be long or heavy. That fee went from $300 to $650 by the end of the year. This year that fee is still in effect. This is the case after having also taken a large peak surcharge during the holidays. If you ship heavy things or large things, that hurts. It's more than double the cost of what it was the year before. Added to that is around a 5% increase in the annual rates across the board with UPS, means [your costs](https://www.lojistic.com/blog/shipping-costs-the-good-the-bad-and-the-best) are going up. That's something you can't combat through the way you ship. It's more about managing the way that those impact your rates. A rate impact analysis is something that is crucial from one year to the next. It allows you to understand how your cost can increase or decrease. This is even without making any operational changes to your shipping. This is what this means. You could ship the same number of packages, the same size packages all to the same location. Yet, your costs will still vary because of the way that the rates have changed. The impact analysis analyzes the new rates, the new surcharges, and your cost from the carrier. It takes them and applies them to your historical data. This is to understand the same things, same thing shipping to same places. It helps you understand how your costs will change from year to year. Assess the Health of Your Contract ---------------------------------- Assessing the health of your contract is understanding where you are now. That's one of the tips I mentioned in an article that I wrote about negotiating the best [UPS](https://www.ups.com/us/en/help-center/packaging-and-supplies/special-care-shipments/international-dangerous-goods/contract-shipping.page) and FedEx contracts. But what it is is understanding where you are now. The health of your contract is how you compare with shippers of similar size. This includes how you spend and shipping characteristics. So, if you are shipping something. And a company down the street, who is the same size company as you, ships to the same customer and is paying less. It means that you have some opportunity to improve your contract. Logistic helps customers understand the health of their contract by analyzing. It includes a shipper profile made up of over 100 points in your shipping profile. This includes the surcharges you could apply and the service level you could ship on. This is along with your [current rates](https://www.lojistic.com/blog/rate-negotiation) for those services. What we want to understand is whether there is room to improve for a shipper your size. Or we want to know if you're doing amazing already. We'll let you know that your contract is healthy if you're at the top tier of a shipper of your size. Manage the Negotiation Process ------------------------------ There's a tip for people who are looking to assess the health of their contract but are trying to lower cost. This is to manage the negotiation process. There is one key tip that I included in the article I recently wrote about [how to negotiate](https://www.lojistic.com/blog/five-tips-for-negotiating-anything-from-cars-to-parcel-carrier-contracts) your best contract. It is knowing what to ask for, how to ask for it, and when. The analogy I used is it's like telling a good joke. The punch line is everything, and the delivery is everything. So, you don't want to give that punch line up too soon. The way that applies to negotiation is very similar. You want to know what concessions you're asking for within the negotiation. Even more important is when to ask for them. There's an appropriate time when you demand certain concessions in your contract. And there are other times when it's very easy to ask throughout the contract. So knowing that and the temperament of your rep to engage the negotiation is important. Negotiations affect the concessions that the carriers will make in your favor. ![Bryan Van Suchtelen Headshot](https://www.lojistic.com/assets/public/users/bryan.png) Author Bryan Van Suchtelen Bryan Van Suchtelen Corporate Director of Rate Services With more than 34 years of parcel experience, Bryan Van Suchtelen is the Corporate Director of Rate Services at Lojistic, one of the nation’s top logistics and transportation cost management companies. Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers. At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars. [« Previous Post](/blog/rate-negotiation) [Next Post »](/blog/parcel-audit) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. 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