Every year, UPS and FedEx announce their respective general price increases (GPI). Shippers, both large and small, scramble to determine the effective impact on their shipping costs. Since the announced increases are only averages, the true impact for any given business can vary greatly.

The January 2011 carrier GPI substantially impacted accessorial charges, such as:

• Residential Surcharge
• Delivery Area Surcharge
• Address Correction Fees

UPS and FedEx have now announced their intended January 2012 price increases

Since most businesses charge their customers for shipping or try to work it into the price of the product being sold, it is highly beneficial that every company pre-plans their response to the announced GPI.

Best Practice Suggestions

• Every business, based on their historical and/or anticipated shipping volume and characteristics, ought to analyze the cost impact of their carrier’s GPI before the increase becomes effective.
• If your company's rates, volume, and characteristics are such that a margin of opportunity exists to improve your discounts and incentives, consider initiating negotiations with you carrier before the annual rate increase becomes effective.

Source Consulting can help your company implement the best practices we have suggested above…and much more.

Our team thoroughly understands today’s complex carrier pricing environment and has help hundreds of companies implement solutions to reduce shipping costs. Contact us today to review the solutions we can provide for you.

*Restrictions apply. Please call our freight consultants for more details.