Shipware

FedEx announced its annual rate increases. On January 6, 2025, FedEx package and freight standard list rates will increase by an average of 5.9%. As per usual, the "average" increase will impact shippers differently depending on their shipping profiles and contractual terms, and does not include increases to surcharges. Are FedEx's demand surcharges finally take a breather after 4+ years? Alongside its GRI announcement, the carrier also stated, "Holiday Demand Surcharges are effective Sept. 30, 2024–Jan. 19, 2025. FedEx does not plan on implementing U.S. domestic Demand Surcharges outside of this time period, but will continue to monitor network and market conditions closely." Check back next week for our analysis and key takeaways from FedEx's 2025 rates. #logistics #fedex #supplychain

More fuel surcharge increases from UPS. Just two and a half weeks after implementing its latest FSC table increases, UPS is once again increasing the International Ground Export Import Fuel Surcharge and International Air-Export & International Air-Import Fuel Surcharge tables. Effective this coming Monday, September 16: The International Ground Export Import Fuel Surcharge table is increasing 1.00% (100 bps). This will be the second increase to this table since August 26, when the table increased 1.5% (150 bps). The International Air-Export and International Air-Import Fuel Surcharge table is increasing 1.75% for both export and import. This will also be the second increase to this table since August 26, when the table increased 2.0% (200 bps). On Monday, the total increase over three weeks for these FSC stables will be 2.5% (250 bps) and 3.75% (375 bps), respectively. #logistics #ecommerce #internationalshipping

"Today, the USPS announced the complete removal of the DDU entry discounts for PS Consolidators' NSAs (Negotiated Service Agreements). So, while the category discount remains in their pricing, most usage is via NSAs, and the reduced incentive makes using it a waste of resources. Consolidators are being forced to induct further upstream. This will have the undesirable effect of slower performance at higher costs." Gordon Glazer, USPS Specialist, on how recent USPS changes are impacting customers and carriers: https://lnkd.in/gQ6Yk4mi #usps #logistics

OnTrac is increasing its fuel surcharge table. Just announced, the transcontinental carrier is increasing its FSC table 0.75% (75bps), effective October 7. The increase will match their fuel surcharge table to UPS's Ground Domestic and SurePost FSC table, which increased 0.75% (75 bps) on August 26. For carrier pricing updates delivered to your inbox, sign up at shipware.com/updates. #logistics #logisticsmanagement #scm

In case you missed it, more UPS and FedEx fuel surcharge table increases went into effect over the past couple of weeks. Here's what you can do about them: 📦 Negotiate discounts on fuel. Like other surcharges, the Fuel Surcharge can be negotiated and discounted. 📦 Negotiate larger base rate and accessorial surcharge discounts. The Fuel Surcharge is applied to your net rates (after discounts are applied). It's also applied to a number of highly assessed surcharges, such as the Peak/Demand Surcharge, Residential Surcharge, and Additional Handling Surcharge. So, if you're assessing your accessorial impacts and the fuel surcharge is catching your attention, the place to look is not the FSC itself, but all of the other charges that make the FSC what it is. 📦 Non-standard Provisions for high-volume shippers. If you've got the volume to flex, some strategies you can investigate include: ➡ A Fuel Surcharge cap ➡ Negotiating points below the prevailing FSC ➡ Locking into a date-based FSC table ➡ Blended rates 📦 Model some alternative shipping options. USPS products, for example, have no fuel surcharges. ---- It's important to note that any of the above strategies should be part of a greater, holistic transportation cost strategy. The give-and-take nature of carrier pricing can be delicate; analyze your shipping data and have a game plan. #logistics #logisticsmanagement #parcel

Shippers, how many of you have attended PARCEL Forum for over a decade? Betting a lot of you who have attended once just keep going back. It's a special conference where logistics pros can share, learn, and geek out about all things small parcel. Pictured here, Co-founder Rob Martinez staffs the booth of a fledgling startup by the name of Shipware in 2010. Since this photo, the Shipware team has grown about 1000%, with teammates spanning San Diego to New York to Ecuador. We've helped thousands of shippers and managed billions in parcel spend. We've joined the SIB Fixed Cost Reduction family of companies. We've had our logo light up Petco Park during Padre's games. We've expanded services. iPad bezels have gotten WAY smaller. Now, this year, we're sending a whopping ten people to #parcelforum in Dallas -- Ed Baranek, Luke Larson, Michael Shine, Andrew Wilson, Paul Yaussy, Eric Steele, Caitlin Kerzan, Joshua Taylor, Thomas Goodman, and Matthew E. Sumowski. It's safe to say we look forward to PARCEL Forum every year. Whether September 16-18 will be your first or twentieth PARCEL Forum, drop by Booth 506 to chat with the team about accesorials, times-in-transit, minimum charges, to speculate about whether ground guarantees will ever return... or just to say hey. #parcel24dallas #tbt

We're two-steppin' back to Texas and back to *the* event for small pack shippers and logistics professionals, Parcel Forum! From September 16-18, you can find the Shipware team at Booth 506 at the Gaylord Texan in Dallas. Shippers, make sure you arrive on September 16 to join our Professional Services team's 10:00 am pre-conference, shipper-only workshop, "Contract Negotiations: How to Navigate the Carrier Landscape," to find out if your carrier discounts are all hat, no cattle. Some of the topics the team will cover: 📦 Tips for Evaluating Your Current Carrier Contract 📦 What to Expect from Your Carrier Reps 📦 Real-World Negotiation Examples 📦 And break learners out into small peer groups for problem-solving and group negotiation exercises. Before moseyin' off, join us on the final day, September 18, at 9:50 am for our session, "How to Predict & Analyze 2025 Accessorials," where we'll discuss... Well, that one's pretty self-explanatory, I guess. But, it's an incredibly important topic of late because carriers have favored these surcharge increases over base rate increases because they're not included in the annual General Rate Increase "average" announcement. Worse still, these charges may increase or change multiple times each year. A must see if your brand's shipping costs are under your care. Haven't registered yet? 👉👉 https://lnkd.in/gmqFnYce See you in Dallas! #parcel24dallas #parcelforum #logisticsmanagement

FedEx has just announced fuel surcharge increases, effective this approaching Monday, September 2, 2024. On the heels of UPS’s fuel surcharge increases (https://lnkd.in/g7_i9D76), which were announced last week and applied today, FedEx is increasing its fuel surcharge tables for package services/domestic air and Ground, Home Delivery, and International Ground. To compare the new FSC tables to the current ones, we need to note that FedEx has adjusted the price per gallon (PPG) rows on the lower PPG end of their tables to cover a wider range. On the domestic package service table, the first four rows ($1.75 - $2.11) now each cover a range of $0.09, with the remaining rows covering a $0.05 range. The current table covers a $0.05 range across all rows. On the Ground, Home Delivery, and International Ground table, the first five rows ($2.65 - $3.55) now each cover a range of $0.18, with the remaining rows covering a $0.09 range. The current table covers a $0.09 range across all rows. Shipware’s Professional Services team notes that the smaller spreads are on PPG ranges that are common today. If we see the predicted drop in fuel costs over the next several months, the larger spread on the lower end of the table would mean a slower drop in fuel surcharges. Essentially, this keeps shippers at a higher FSC for a longer period, allowing the carrier to further capitalize on their FSC before likely updating their tables again. On Monday, September 6, the FedEx Ground, Home Delivery, and International Ground fuel surcharge table will increase: 📦 0.75% to 1.25% (75 to 125 bps) from $3.10 to $3.55 📦 0.75% (75 bps) for $3.55+ rows FedEx’s domestic fuel surcharge table – package services, will increase: 📦0.75% to 1.25% (75 to 125 bps) from $1.91 to $2.11 📦 0.75% (75 bps) for $2.11+ rows FedEx also announced a fuel surcharge increase to express freight services. Read FedEx’s announcement for details: https://lnkd.in/gkg2W5kF #logistics #logisticsmanagement #supplychainmanagement

🔔 After announcing its fuel surcharge increases yesterday, today, UPS issued a revision to further increase two of its fuel surcharge matrixes. Specifically, the International Ground Export Import Fuel Surcharge and International Air-Export and International Air-Import Fuel Surcharge will now increase an additional 1.0% (100 bps) since yesterday's announcement. (Read our original post from yesterday for more context: https://lnkd.in/gva9UF-S) The revised increases, effective this coming Monday, August 26, are as follows: 📦 The International Ground Export Import Fuel Surcharge is increasing 1.5% (150 bps). [Revised from 0.5% (50 bps)] 📦 The International Air-Export Fuel Surcharge is increasing 2.0% (200 bps). [Revised from 1.0% (100 bps)] 📦 The International Air-Import Fuel Surcharge is increasing 2.25% (225 bps). [Revised from 1.25% (125 bps)] With increases to the number of services to which the fuel surcharge is applied, along with the new Surge Fees on imports from 13 countries (https://lnkd.in/gguJ-4Nv), these FSC increases are truly more impactful than ever. Stay sharp, shippers, and stay up-to-date on carrier rate and surcharge adjustments at shipware.com/updates. #logistics #parcel #logisticsmanagement

UPS has just announced another fuel surcharge matrix increase, effective this coming Monday, August 26, 2024. These are not your regularly scheduled, weekly FSC updates but flat increases to your shipping costs. 📦 The Ground Domestic and SurePost Fuel Surcharge is increasing 0.75% (75 bps). This will be the third increase to the Ground Domestic and SurePost FSC since this past April 29, for a total of 1.75% (175 bps), and the fifth increase since December 18, for a total of 3% (300 bps). 📦 The Domestic Air Fuel Surcharge is increasing 0.75% (75 bps). Like Ground and SurePost, this is the third Domestic Air FSC increase since April, for a total of 1.75% (175 bps), but *only* the fourth since December, totaling 2.75% (275 bps). 📦 The International Ground Export Import Fuel Surcharge is increasing 0.5% (50 bps). This is the second increase to this FSC this year. On February 5, 2024, the Ground Export Import FSC increased 1.00% (100 bps). 📦 The International Air-Export Fuel Surcharge is increasing 1.0% (100 bps). 📦 The International Air-Import Fuel Surcharge is increasing 1.25% (125 bps). In case you missed it, last Thursday, UPS also added more value-added services and surcharges to the list of surcharges that the Fuel Surcharge is applied to. Costly charges like Address Correction and Dangerous Goods joined an already long list of applicable charges. (More info: https://lnkd.in/gKqXeemG) This means that these fuel surcharge matrix increases are more impactful than ever. However, if there's a silver lining, it's that carriers are more open than ever to negotiating fuel surcharge discounts - discounts that were typically reserved to court the largest of shippers, a fraction of customers. Check out the details of UPS's fuel surcharge increases and preview the new tables here: https://lnkd.in/gTwUAK2B #logistics #logisticsmanagement #ecommerce