How To Get Ahead of The UPS Price Increase

UPS is raising small package shipping costs by 4.9 percent after the holidays, and this may present an opportunity for companies to review their shipping needs ahead of the increase. UPS should release rate-specific details in November, and FedEx will follow up with a similar increase in January 2017. In the interim, companies can work to implement cost-effective small package freight strategies that could help them budget for, or even offset, the increase.

Here are three questions executives should ask to streamline cost:

1. Are the right services being used?

Executives should review their company’s current shipping services to ensure they are the most cost-effective options. If the company uses overnight air on a regular basis, consider if there are packages that could be shipped more affordably by using a two-day air or ground service. Also, verify that products are being shipped in the appropriately sized boxes so that you are not paying extra for added airspace.

2. Are the “extras” really necessary?

If your employees are sending packages that require signatures upon delivery or are insuring packages, question whether it’s necessary in all cases. Fees for services like insurance or Delivery Confirmation Signature will likely increase, so asking employees to use such services only when needed could help reduce accessorial-related fees.

3. Is it time to consider other carriers?

While UPS’ and FedEx’s price increase announcement occurs annually, it may provide the impetus to switch to a more affordable carrier. An executive may look into regional options that offer similar services at competitive pricing and typically with fewer accessorial fees.

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