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.
This increase will be a shocker for everyone. But what's more shocking is the increase in subcharges and accessorial fees. The increase in base rate is more understandable but the subcharges are hitting the roof. With UPS alone, the residential delivery subcharge increased by 10 percent already. Wrong address surcharges increased by 9.1 percent. The price hike is ludicrous but there's not much we can all do about it.
Businesses are affected because shipping fees are added everyday expenses. And with the increase, companies have to increase their budgets for shipping out packages too. There will be so many victims of this increase but most consumers have no choice but to pay. Is there anything we can do about it? Companies can start negotiating for subcharges and accessorial fees. This may help lower the shipping costs.
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.
The economy is not doing great and many businesses are suffering because of this. Don't just accept everything that comes your way. Paying expensive rates for shipping is ludicrous. Try negotiating for charges you can keep at a minimum. This will be plenty of help in not overspending with shipping fees.
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.
This increase will be a shocker for everyone. But what's more shocking is the increase in subcharges and accessorial fees. The increase in base rate is more understandable but the subcharges are hitting the roof. With UPS alone, the residential delivery subcharge increased by 10 percent already. Wrong address surcharges increased by 9.1 percent. The price hike is ludicrous but there's not much we can all do about it.
Businesses are affected because shipping fees are added everyday expenses. And with the increase, companies have to increase their budgets for shipping out packages too. There will be so many victims of this increase but most consumers have no choice but to pay. Is there anything we can do about it? Companies can start negotiating for subcharges and accessorial fees. This may help lower the shipping costs.
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.
The economy is not doing great and many businesses are suffering because of this. Don't just accept everything that comes your way. Paying expensive rates for shipping is ludicrous. Try negotiating for charges you can keep at a minimum. This will be plenty of help in not overspending with shipping fees.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shiupping costs. Please visit NPI to learn more about logistic vendor cost reduction
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