As the 2024 holiday season approaches, both UPS and FedEx have unveiled their Peak Season surcharges, introducing some important changes that shippers need to be aware of.
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With the new year well underway, shippers are free from the tyranny of urgent holiday order fulfillment. Now, they can shift their attention to the general rate increases (GRIs) levied by parcel carriers, and focus on mitigating the impact on their shipping costs.
The 2024 GRI announced by UPS and FedEx came with a headline 5.9% figure — a full percentage point lower than last year. In a vacuum, that might sound like a boon for shippers. But the reality is that 5.9% is still the second-highest GRI of all time, and the true impact to shippers is much higher.
Consider the compounding effect of these annual parcel cost increases. Every year, carriers decide that parcel rates will rise 4.9%, 5.9% or 6.9%, and each increase is applied to a higher “principal,” the existing rates that were increased last year, and the year before, and so on. This quickly adds up to a dramatic effect. With the latest 5.9% increase, the cost of shipping common one-pound packages like clothes or a paperback book is over 20% higher compared to just 25 months earlier.
Shippers are left to either absorb the increases and take the associated hit to profits, try to pass them along to inflation-fatigued customers, or find ways to mitigate them. The answer seems obvious, but acting on the drive to mitigate is far from straightforward. GRIs are intentionally complex, with major rule changes, increases targeted at specific shipment profiles, and even more lurking beneath the surface.
Unlocking new levels of profitability is a crucial goal for any business. That's where Business Solutions Group comes in. Based in Mission Viejo, our team of experienced business consultants specializes in rate optimization. Whether you're dealing with LTL or FTL shipments, we have the expertise to help you streamline your operations and maximize your profitability. By partnering with Business Solutions Group, you can ensure that your rates are optimized, allowing you to increase your bottom line and achieve long-term success. Don't let unnecessary costs eat into your profits - let us help you unlock the full potential of your business.
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In today's competitive business landscape, effective negotiation skills can make all the difference in securing favorable terms with carriers.
However, navigating complex negotiations can be a daunting task, requiring a deep understanding of industry nuances and the ability to strategize effectively. This is where leveraging outside expertise comes into play.
By enlisting the help of professionals who specialize in carrier negotiations, you can tap into a wealth of knowledge and experience that can significantly enhance your bargaining power. These experts possess insider insights into carrier practices, rates, and market trends, allowing them to craft tailored strategies that align with your specific needs.
One of the key advantages of outsourcing negotiation expertise is the time and energy it saves. As a business owner or manager, you already have numerous responsibilities demanding your attention. By entrusting negotiation tasks to specialists, you free up valuable resources that can be better allocated to core business operations.
Moreover, outside experts bring objectivity to the table. They are not emotionally invested in the outcome and can provide an unbiased perspective on what constitutes fair terms for both parties involved. This impartiality helps prevent potential oversights or concessions that could negatively impact your bottom line.
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When it comes to shipping, finding the best rates on less-than-truckload (LTL), full truckload (FTL), and Air services can be a challenging task.
However, with the help of modern technology and advanced logistics solutions, securing the most competitive rates has become easier than ever before.
Whether you are a small business owner or a logistics manager for a large corporation, cost-efficiency is always at the forefront of your mind. That's where our services come in.
We understand that every penny counts in today's competitive market, and we are committed to helping you save both time and money when it comes to your shipping needs.
Our team of experts has extensive experience in negotiating with carriers across various transportation modes, including LTL, FTL, and air freight. We have established strong relationships with reputable providers who offer reliable services at competitive prices.
By leveraging our network of trusted carriers, we are able to access exclusive discounts and preferential rates that may not be readily available to individual shippers. This allows us to pass on these savings directly to you while ensuring that your shipments are handled with utmost care and efficiency.
We take pride in our ability to provide tailored solutions that meet your specific requirements without compromising on quality or reliability. Our dedicated team will work closely with you to understand your shipping needs, analyze your budget constraints, and find the most cost-effective options for your business.
In addition to offering competitive pricing on LTL, FTL, and air services, we also provide comprehensive tracking tools that allow you to monitor the progress of your shipments in real-time. This transparency ensures peace of mind throughout the entire shipping process.
Don't let high shipping costs eat into your profits or slow down your operations. Trust our expertise in securing the best rates on LTL, FTL, and air services so that you can focus on what truly matters – growing your business.
Contact us today for a personalized consultation and discover how our cost-effective shipping solutions can benefit your business. Let us be your trusted partner in streamlining your logistics operations and saving you both time and money.
Will UPS Strike or Not?!!
With LTL carriers becoming more competitive, high volume shippers need to be mindful of the negotiation process to ensure they are getting the best rate possible.
Negotiating contracts with large companies like UPS and FedEx can be a daunting task for many businesses.