Businesses should start getting concerned about the ridiculous increase in courier rates this year. Although the world doesn't hear much about the strategies of famous shippers like FedEx and UPS to increase profits, their rate increases are as obvious as it gets. Maybe that's their way of gaining profits. Are they losing money which led to the high increases? That's another story.
How big is the increase? There is an average of 4.9 percent increase in shipping base rates. Those who will be more affected are people who ship less than 30 pound packages. Compared to last year, the base rate is subject to 7 to 8 percent increase. The biggest names in courier services like FedEx and UPS are part of this.
But aside from the increase in the base shipping rates, the real clincher here is the increase in the subcharges as well as the accessorial fees. This is the year that can be one for the books when it comes to high shipping costs. If you can check, the subcharge for UPS residential delivery has risen 10 percent since last year. It even increased 9.1 percent for wrong address subcharges. These are the perfect examples of what price hike you can expect from these two giant couriers. Fedex will be no different.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
However, before you make an attempt to negotiate, understand what these costs and charges are first. How are these charges affecting the rates and how is the increase affecting you? The more you know about these things, the more you can protect yourself from paying more than you should. This price hike is definitely not temporary. This can be a sign of a continuous price hike in the future. Another thing that you can do is to adjust shipping strategies, packaging and methods. It might help in managing shipping costs.
It is a ridiculous thought to overspend on shipping fees alone. The economy is not in a great place right now and there's no reason why you add burden yourself further. Make an effort to negotiate or at least adjust your shipping methods from now on. Overspending on shipping fees alone is just downright ridiculous.
How big is the increase? There is an average of 4.9 percent increase in shipping base rates. Those who will be more affected are people who ship less than 30 pound packages. Compared to last year, the base rate is subject to 7 to 8 percent increase. The biggest names in courier services like FedEx and UPS are part of this.
But aside from the increase in the base shipping rates, the real clincher here is the increase in the subcharges as well as the accessorial fees. This is the year that can be one for the books when it comes to high shipping costs. If you can check, the subcharge for UPS residential delivery has risen 10 percent since last year. It even increased 9.1 percent for wrong address subcharges. These are the perfect examples of what price hike you can expect from these two giant couriers. Fedex will be no different.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
However, before you make an attempt to negotiate, understand what these costs and charges are first. How are these charges affecting the rates and how is the increase affecting you? The more you know about these things, the more you can protect yourself from paying more than you should. This price hike is definitely not temporary. This can be a sign of a continuous price hike in the future. Another thing that you can do is to adjust shipping strategies, packaging and methods. It might help in managing shipping costs.
It is a ridiculous thought to overspend on shipping fees alone. The economy is not in a great place right now and there's no reason why you add burden yourself further. Make an effort to negotiate or at least adjust your shipping methods from now on. Overspending on shipping fees alone is just downright ridiculous.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about shipping vendor cost reduction
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