Your Essential Guide to the 2024 FedEx and UPS Rate Increases

10/27/2023 — Leah Palnik

FedEx and UPS will be increasing their rates by an average of 5.9% in 2024. While that is lower than last year’s General Rate Increase (GRI), don’t start celebrating just yet. The frustrating truth is that your actual shipping costs will likely go up more than 5.9% in the new year. The changes that FedEx and UPS are making are more complex than meets the eye - it’s essential to understand them so you know how your costs will be affected and what you can do about it.

Here's your guide to the FedEx and UPS rate increases for 2024. Jump to:

• A look back at the FedEx and UPS GRIs
• Important changes for 2024
• How the FedEx and UPS rate changes will affect your costs in 2024
• What you can do to mitigate the effects of the FedEx and UPS rate increases

A look back at the FedEx and UPS GRIs 

For 2024, both FedEx and UPS are facing a slowdown in demand, as indicated by a GRI that is less aggressive than the increase we saw for 2023. Let's do a quick history lesson. In 2022 the carriers took a 5.9% increase and then bumped that up to an all-time high of 6.9% in 2023. That was thanks, in part, to all of the supply chain disruptions and surges in demand that resulted from the pandemic. For several years prior to that, both carriers had been raising their rates annually by an average of 4.9%.

This year, FedEx made their GRI announcement earlier than they typically do, and many speculated it was a way to put the pressure on UPS. Over the summer, UPS faced threats of a driver strike and during the heated negotiations, the carrier lost some business to its competitors. While UPS and the Teamsters eventually averted a strike and came to an agreement, the new contract comes with a steep increase to labor costs. Many were expecting a higher GRI in 2024 from UPS as a result.

Some important quick facts about the new FedEx and UPS rates:

• The new FedEx rates take effect on January 1, 2024, while the UPS rates take effect a week earlier on December 26, 2023.
• The 5.9% average doesn’t take surcharges into account - many of which are increasing by more than 5.9%.
• How much your costs actually go up in 2024 will depend on several different factors. The services you use, your shipment dimensions and weight, and how far your shipments are traveling all have an effect.

Important changes for 2024

Navigating the Potential UPS Strike: How to Protect Your Supply Chain

05/25/2023 — Leah Palnik

In today's interconnected business landscape, small businesses heavily rely on efficient and reliable shipping services to maintain their supply chains and meet customer demands. With the potential UPS strike looming, it is crucial for small businesses to understand the implications and take proactive measures to safeguard their operations. In this article, we’ll delve into the details of the potential UPS strike, why small businesses should care, and provide actionable steps to protect their supply chains during this uncertain period.

Understanding the UPS Strike

Negotiations between UPS and the Teamsters, the union representing UPS employees, are ongoing and have reached a critical point. While it is uncertain whether a strike will occur, it is essential for small businesses to be prepared for such a scenario. The Teamsters and UPS have until August 1 to reach an agreement. The impact of a UPS strike can be significant, disrupting supply chains and causing delays in deliveries, which can have far-reaching consequences for businesses of all sizes.

Implications for Small Businesses:

• Disrupted Operations: Small businesses heavily reliant on UPS services may face disruptions in their day-to-day operations, such as delays in receiving inventory, shipping products to customers, and meeting delivery deadlines. This can lead to dissatisfied customers, decreased revenue, and potential damage to the brand reputation.


• Increased Costs: In the event of a UPS strike, small businesses might be forced to seek alternative shipping solutions, which could come at a higher price. Exploring other shipping carrier options and securing competitive pricing now will be a necessary lifeline.


• Supply Chain Bottlenecks: A UPS strike can cause a ripple effect throughout the entire supply chain. Suppliers, manufacturers, and distributors relying on UPS may experience delays in receiving raw materials or components, leading to production slowdowns and potential stock shortages. Small businesses need to proactively address these bottlenecks to mitigate the impact on their operations.

Protecting Your Supply Chain:

• Diversify Shipping Partners: Small businesses should consider partnering with alternative shipping providers such as FedEx, DHL, or regional carriers. Research and negotiate discounted rates with these providers well in advance, ensuring they can handle the business's shipping volume during a UPS strike.


• Plan Ahead: Developing contingency plans and forecasting potential disruptions is crucial. Small businesses should communicate with suppliers, manufacturers, and customers, informing them of potential delays and seeking alternative arrangements if necessary. Implementing buffer inventory or safety stock can help mitigate supply chain disruptions during this period.


• Explore Local Sourcing: In case of a UPS strike, small businesses can explore local sourcing options for raw materials or components. This reduces the reliance on long-distance shipping and minimizes the impact of any potential disruptions in the transportation network.


• Optimize Inventory Management: Efficient inventory management becomes paramount during uncertain times. Small businesses should analyze their inventory levels, streamline their procurement processes, and leverage technology solutions to track and manage inventory in real-time. This ensures the availability of essential products and reduces the risk of stockouts during a UPS strike.


• Communicate with Customers: Proactive and transparent communication with customers is crucial during periods of disruption. Small businesses should keep customers informed about potential delays, set realistic expectations, and provide updates throughout the process. Customer loyalty can be maintained by offering alternative shipping options or discounts during this challenging period.


• Control Your Costs: One effective way for small businesses to safeguard their supply chains and keep costs under control during a potential UPS strike is by exploring discounted shipping options. PartnerShip works with over 130 associations to provide members with substantial discounts on FedEx services through the FedEx Advantage program. By signing up for the program, businesses can mitigate the financial impact of a UPS strike while maintaining reliable shipping services. These discounts can help offset any potential increase in shipping costs and ensure that businesses can continue to fulfill orders and meet customer expectations without compromising their bottom line. Contact our team to find out if you qualify for the FedEx discounts and how to get started.

From Disruption to Resilience

While the potential UPS strike poses challenges for small businesses, it also presents an opportunity to reassess and strengthen their supply chain strategies. By diversifying shipping partners, planning ahead, exploring local sourcing options, optimizing inventory management, and maintaining open communication with customers, small businesses can navigate through potential disruptions and emerge stronger. Being prepared for contingencies ensures business continuity and safeguards the customer experience, even during challenging times.

Forget Boxes: When to Use Poly Mailer Packaging

04/05/2023 — Jen Deming

If you’re a retailer, you probably know that there is a wide variety of packaging options available to ship your customer orders. In addition to traditional options like boxes, poly mailers are quickly becoming the preferred choice of many shippers. With perks like low supply costs and quick assembly, poly mailers sound like a rock star solution, but how can you be sure they are right for you? Looking at some very specific scenarios can help determine when to use a poly mailer.

Scenario 1 - When you need assembly to be fast and efficient

No one wants to waste time packaging shipments - and poly mailers are a great option when you want to streamline your shipping process. Unlike boxes, which require assembly, tape, and internal elements like foam core, poly mailers are ready to use right off the shelf. Once you select which mailer style to use, all you need to do is insert the item, seal the mailer, and add the shipping label. 

An added bonus is that poly mailers can streamline and simplify storage for your packing materials. They take up less space, which means you can store more of them in your warehouse. If you have limited storage space, and a smaller team to manage your shipping, these efficiencies can be a lifesaver. 

Scenario 2 - When you want to keep shipping supplies costs low

Keeping shipping supplies on hand can get pricey, especially if you need to order custom-sized items like boxes for packaging. If you’re looking to save money on supplies, poly mailers are a great option. They are typically less expensive than boxes -  on average they cost $0.25 a mailer compared to $1.25 for a box of a similar size. For extra protection, you can find bubble mailers, which have padding built in. Bubble mailers don't require additional packing materials like Styrofoam peanuts, so you're saving some money there. All types of mailers are able to be purchased in bulk, which helps with cost savings.

Another perk you get with poly mailers is that if your supplies unexpectedly run low they are easy to find at places like office supply or grocery stores. While it’s always best to keep an appropriate amount of packaging on hand, if you’re in a pinch, finding more won’t be difficult or break the bank. These factors all add up to significant savings over time, especially if you ship a moderate to high volume of products.

Scenario 3 - If you want to avoid high DIM weight charges

As many retailers know, small package carriers use dimensional weight (DIM weight) pricing to calculate shipping costs. Carriers do not like to waste space on their trucks, so shipping large, lightweight packages is a no-no. These bulky packages will cost you, and this is a significant expense that quickly adds up for many retailers. A smart way to offset these high costs is to make sure you are minimizing wasted space, and that’s where poly mailers come in. 

Poly mailers are small, thin, and flexible - they can be folded and resized to best fit the product inside. These small, dense packages allow for greater efficiency for the carrier, and will cost you less in the long run. 

Scenario 4 - When you want a specific type of protection

Poly mailers are economical and convenient, but they are not suitable for all types of products. If you’re shipping fragile items, or those too large and heavy to fit securely in a mailer, you may need to use a different type of packaging. 

Poly mailers are ideal for soft goods like clothing, bedding, purses and backpacks, and some accessories like belts or scarves and knit hats. Padded mailers that offer additional lightweight protection are great for books and printed materials, DVD and blu ray discs,  some jewelry, cosmetics and skincare items, and select types of home goods like flatware.

If you’re shipping the right items that are not easily damaged, poly mailers can offer excellent protection. They are made from durable materials that can withstand normal handling during shipping. They are tear resistant, and also offer dirt and weather protection that is ideal for small items going to residential mailboxes.

Scenario 5 - When eco-friendly shipping is important

Finally, if you’re committed to eco-friendly shipping practices, poly mailers can be a great option for your business. They are often made from fully compostable or recyclable materials. You can often drop off poly mailers at the same places that would recycle plastic bags and containers. Poly mailers are also generally lightweight compared to boxes, which is more energy efficient for carriers.

Most significantly, poly mailers are often completely reusable. Many options have a secondary adhesive strip that allows them to be used for return shipping of orders, or even reused by the consumer for other shipping purposes. Even those without a second strip can be folded over at the opening and secured with tape - their durable material can withstand multiple journeys through a shipping network. These factors combined make poly mailers a great choice for retailers who want to reduce their environmental impact by reducing packaging waste.

Poly mailers are a great option for retailers - when it’s the right product

Poly mailers are a versatile and cost-effective option for small package shipping, and work very well for many ecommerce retailers. They can help streamline your order fulfillment process, enforce brand awareness, and help avoid high DIM weight costs. You may be able to save even more on your small package shipping if you belong to an association or chamber that works with PartnerShip. Contact our team to find out what options are available to your business.

Time-Saving Shipping Tips Any Small Business Can Try

03/01/2023 — Jen Deming

If you're a small-business owner, you know that shipping your products can be a time-consuming and frustrating task. When you have limited resources and staff, every wasted second counts. But it's time to take action - there are ways to make small package shipping easier, and faster, for you and your business. 

If You're Shipping Clothes, Don't Sleep on These Pro Tips

02/20/2023 — Jen Deming

The online apparel industry is kind of a big deal. In fact, apparel and accessories accounted for 29.5% of all ecommerce sales in 2021 in the US alone. While shipping clothes seems pretty straightforward, you must master packaging, item weight, returns, and more to be successful. We’ve compiled the definitive list of unique tips for clothing retailers that will help ensure you’ll have the competitive edge.

Tip 1: Keep costs low with flexible packaging options 

Apparel shippers have a unique advantage over other ecommerce retailers: more packaging flexibility. This ability to use a variety of different packaging types allows greater cost control. Malleable items like clothing are tougher to damage than rigid, breakable items such as home goods, for example. Because of this, many apparel retailers can ship in alternative packaging types like poly mailers, envelopes, or recyclable bags instead of boxes, which can cost less and also offer greater customization options.

Another unique advantage of clothing is that it can be adjusted within the package to avoid higher shipping charges due to dimensional (DIM) weight. Most lightweight items are at an increased risk, but pliable fabric items like clothing can be folded and fitted to reduce extra space more easily. Whatever you can do to avoid wasting space will help you out in the long run.

Tip 2: Use apparel’s high return rate to your advantage

Retail returns are a particularly impactful affliction when it comes to the apparel industry, especially with online shopping. In fact, 88% of customers have reported returning clothing in the past. Sizing, color, fit, pricing, or something as simple as buyer’s remorse may encourage a customer to return their product. The key to navigating returns starts with shifting your perspective on them in the first place. Returns actually give you an opportunity to further engage with customers, and can convert online-only shoppers into brick-and-mortar customers. Your customer may initially prefer the quick refund of an in-store return, but after checking out your products in person, they may be more likely to exchange or accept a store credit for later use.

Shifting your attitude away from returns as a necessary evil to a more impactful part of your business strategy as a growth driver is essential. When used correctly, returns can actually result in higher net sales from your most profitable customers. Receiving excellent customer service during a return will increase confidence in a brand. Helpful measures such as adding return packaging and instructions, or sending follow-up emails to assess the buying experience, can strengthen the customer relationship and keep them coming back for more.

Tip 3: Offer free shipping more successfully with scalable threshold strategies

With free shipping as a major expectation amongst consumers, ecommerce retailers can struggle with how to implement a strategy that is viable. Apparel retailers have it a bit easier than other shippers, due to the variety of options available. Implementing free shipping by using a threshold (“minimum order”) strategy often is the easiest way to give customers what they want while remaining a profitable business. 

First, you must figure out what your minimum threshold should be by looking at gross profit margin and average shipping costs. After you come up with that figure, consider offering the following value-centric options so that it’s easier to hit a specific order amount:

• Product bundles - consider bundling options of most commonly-purchased items that customers go for in multiples, and pricing the bundle at your threshold. Example: 6 pairs of socks for $25
• BOGO offers - offer BOGO deals that will get your average order value up and hit the minimum. Example: buy a pair of jeans for $40, get the second pair half off to hit a threshold of $60 
• “Shop this outfit” - spotlight entire outfits, from basics to accessories. Make the price of each item clear, and display in virtual showrooms grouped by theme, like a season or occasion. Customers love to visualize how to put pieces together, and clearly breaking down the price for each item will help customers do the mental math to get to that threshold.

If you do offer free shipping, you cannot over-communicate the minimum order amount. It’s important that the shopper knows how much they must spend during every step of the order process. That way, they don’t reach the checkout and abandon their cart due to shipping frustrations.

Tip 4: Take advantage of shipping discounts exclusive to clothing retailers

No matter what industry you’re in, you should be aiming to keep your shipping costs low. Optimizing your packaging, ensuring you have accurate shipping details, and leveraging returns can all help, but checking into discounts is always smart.

Some carriers may offer limited-time promotional pricing or volume-based discounts, but your business needs reliable discounts that don’t have an expiration date. Many association groups and trade organizations within the retail industry offer shipping discounts as a member benefit. PartnerShip works with over 130 groups to provide members discounts that can offset daily shipping costs. Contact our team to see what’s available to you.

Why Offering Free Shipping for Your Business is Easier Than You Think

12/13/2022 — Jen Deming

As a consumer, the words “free shipping” can create a huge incentive that pushes you to purchase. The expectation for most shoppers is that there will be some sort of free option. However, many retailers are still hesitant to offer free shipping, or stuck on how to make the choice available to consumers while still protecting their bottom line. Let’s take a look at the three most common misconceptions about offering free shipping, and how you can implement strategies to make it work to your business’s advantage.

Misconception #1 – Absorbing shipping costs will cut into my bottom line

If we’re really being honest here, it’s important to note that free shipping isn’t really “free”. Transportation services require time and effort from the carrier, so someone has to pay for it. If it’s not your customer, then it will have to be you. If not addressed correctly, you will have to absorb costs, and this will decrease your margins, overall.

The good news is that offering free shipping to your customer can have a major positive impact on your sales because it’s viewed as a huge value-add. In fact, most consumers are willing to spend up to 30% more online if they know they won’t be paying for shipping. As a top incentive, a further 93% of shoppers say they will take action to qualify for free shipping by adding more items to their order. By offering free shipping, you are going to boost sales and increase your average order spend. In time, the increase in revenue will ideally offset your shipping costs.

Pro tip: Set a minimum amount threshold to qualify for free shipping. 

To make free shipping a viable strategy, it’s probably not smart to offer the service on just any order that is placed. Because shipping costs fluctuate, it can be hard to predict consistently. By setting a minimum order amount, you’ll help ensure that the revenue from the sale will offset the costs of transportation. Determine your minimum order value in advance, and be strategic about communicating that minimum amount during every step of checkout.

Misconception #2 – Building shipping cost into product price will scare customers

To counter the cost of shipping, it may make sense to increase your product price. But this can sound like a scary notion. Raised prices turn off customers and decreases your competitive advantage, right? The truth is, by increasing prices even minimally, while offering a high-value service like free shipping, you will see a boost to your net margin. 49% of all cart abandonment occurs due to sticker shock at the shipping point of checkout, not due to product price. Moderate price increases are generally justified by the customer, as long as fulfillment expectations are being met.

Pro tip: Product pricing should match what your customers are willing to spend and the type of customer you are trying to attract.

When building shipping costs into the price of your products, it’s always important to keep in mind who your target consumer base is. For example, a premium, brand-name shoe retailer can get away with a higher minimum price point than a book seller. Adding the cost of shipping into product price is a legitimate tactic that ensures you're covering your bases, just keep your price points fair and realistic.

Misconception #3 – The demand for free shipping isn’t there for my business 

Unless you’ve been living under a rock, you know that free shipping has pretty much become the industry standard. Thanks to large ecommerce companies like Amazon, consumers expect shipping to be fast, free, or a combination of both. No matter whether you’re selling t-shirts or toolkits, the demand for free shipping is there for any industry. In fact, 66% of consumers want free shipping on all orders, regardless of the total, and 88% expect it when their order exceeds a certain amount. Even more alarming, 61% of shoppers say they are “somewhat likely” to cancel their order if free shipping isn’t offered – that’s a big old ‘yikes’. In short, when the majority of your consumer base expects some type of free shipping, it’s time to stop stalling and decide how to offer the service instead.

Pro tip: Explore ways to “test out” free shipping with offers and promotions.

You don’t have to jump right into a committed strategy right off the rip – dipping your toes in can help determine which tactics work best for you. Consider offering new customers, or rewarding existing ones, with a free shipping promotion. Implement VIP or loyalty programs that allow your customers to sign up and receive free shipping as an incentive. You may even benefit from offering free shipping on select items (perhaps those with a higher price point). By testing out different methods, you can really look at the shipping costs you incur, what your minimum order threshold should be, and refine your strategy from there.

Discounted shipping options help you and your customers

No matter which tactic you decide is best when offering free shipping to your customers, it’s extra important to keep your shipping costs low. You might not know that there are often shipping discounts available through memberships within trade associations, chambers, and industry groups. PartnerShip works with over 130 groups to provide their members with discounts on FedEx services. Contact our team to find out if you qualify.

FedEx and UPS Holiday Shipping Deadlines for 2022

10/21/2022 — Leah Palnik

As you prepare your store for the influx of orders that come with the holiday season, you’re going to want to keep an eye on the shipping deadlines. Both FedEx and UPS have announced the last dates you can ship your orders and make it in time for a Christmas delivery.

It’s important to note these deadlines because demand surges this time of year. The carriers' networks are already strained, and it’s only going to get worse the closer we get to the holidays. To keep your customers happy and set the right expectations, we recommend clearly communicating the shipping cutoff dates and adding in extra days in case of delays.

FedEx has published a complete visual list of the last days to ship. Here are some highlights for domestic shipments:

• December 8 for FedEx Ground Economy
• December 14 for FedEx Ground and FedEx Home Delivery
• December 20 for FedEx Express Saver
• December 21 for FedEx 2Day and 2Day AM
• December 22 for FO, PO, SO, and Extra Hours
• December 23 for FedEx Same Day

UPS has also created a list of the last days to ship for Christmas delivery. Unfortunately, one thing that is missing is a specific cutoff date for Ground shipments. You will need to get a quote on the UPS website instead. For domestic UPS air shipments, the dates are as follows:

• December 20 for UPS 3 Day Select
• December 21 for UPS 2nd Day Air
• December 22 for UPS Next Day Air services

It’s also important to note that service guarantees are currently suspended for both FedEx and UPS ground services. It's also suspended for select air/express services. The main takeaway? You’ll want to encourage your customers to order early and do what you can to add in extra days when setting delivery expectations.

If you're looking for any additional guidance or need a way to lower your small package costs, PartnerShip can help. Contact our team today.

Ranking the Top 3 Retail Shipping Mistakes

05/05/2022 — Jen Deming

Successful retailers have to be next-level multitaskers. However, with so many operating as small businesses, a large portion are running things without a dedicated shipping department. Doing this may be necessary, but it’s easy to make costly mistakes. By looking at what errors are the most important to be wary of, retailers can better sort out the correct way to manage their small package shipping. Let’s take a look at the top three retail shipping mistakes to avoid, starting with #1.

Mistake 1 - Giving inbound shipment control to your vendors 

When you’re receiving inbound shipments, oftentimes the shipping is arranged by vendors. This may seem like the easy way to go, but you could be overpaying on each shipment from every vendor, compounding cost and other challenges that may affect your business. When the vendor arranges your shipping, they choose the carrier and control the cost of transportation, making this a very common retail shipping mistake.

Why choose inbound collect over vendor prepaid?

Choosing inbound collect shipping over vendor prepaid can give you better control over what you’re spending on your shipments and which carrier is used. You can also control which services your business needs, such as specialized equipment or accessorials like liftgates. Additionally, being invoiced directly by the carrier may eliminate any handling or markup fees your vendor could add into the total charges. 

PartnerShip can help simplify the process

While managing your inbound orders may seem like a lot of work, partnering with a 3PL can help reduce the amount of effort you have to put in. A quality 3PL like PartnerShip can provide you with competitive pricing and determine if switching from vendor prepaid to inbound collect makes for your business. Inbound experts at PartnerShip can also help create routing instructions and review and enforce vendor compliance. 

Mistake 2 - Ignoring DIM weight pricing

Dimensional (DIM) weight pricing is a strategy implemented by carriers to offset the cost, time, and energy spent on moving large or bulky shipments through the small package network. This pricing structure focuses on the amount of space your shipment takes up in relation to its actual weight. Overlooking the impact of DIM weight pricing on your total costs is a crucial retail shipping mistake.

Your DIM weight is determined by the dimensions of your shipment. To cut down on time wasted in your already-packed schedule, we have created a DIM weight calculator. If the figure you calculate is higher than your actual weight, then that is what you will be billed on. 

Luckily, there are some strategies that retailers can use to help limit DIM weight charges:

• Right-size your packages by minimizing wasted space inside boxes

• Consolidate orders to reduce the total amount of packages being sent

Why retailers need to be mindful of DIM weight

Retailers ship a lot of small packages, whether you’re receiving orders from suppliers or shipping purchases out to customers. In fact, a large component of retail sales are comprised of ecommerce. Due to the sheer volume of packages being shipped, costs can multiply rapidly, especially if your packages are subject to DIM weight pricing. Retailers must be strategic about how orders are packaged.

How to Save on Shipping While Reducing Packaging Waste

04/11/2022 — Jen Deming

We love shopping online. Nothing beats the convenience of delivery, variety of product options, and satisfaction of adding things to a virtual cart and clicking ‘buy now’. Unfortunately, the perks of ecommerce do have a flipside - the environmental impact of shipment packaging waste. Ecommerce shipping actually has about four times as many touch-points as regular retail. This means more packing and unpacking individual orders to customers – leading to even more packaging waste. Savvy e-retailers are minimizing their environmental impact by using eco-friendly shipping tactics and by using less wasteful packaging procedures. Even better, reducing your shipment packaging waste is a sustainable practice that is both eco-friendly and a smart way to lower shipping costs, through these three easy tips.

Tip 1: Reduce the amount of your packaging 

If you’re a shrewd retailer, you know that your choice of packaging can protect your product, prevent damage, and enhance the value of your brand through the unboxing experience. But not every product ordered online needs to be shipped within layer upon layer of branded boxes and plastic packaging. Taking a “less is more” approach can help balance both cost and structural integrity, in addition to lowering packaging waste. 

When you’re considering what types of shipment packaging to use, retailers have a ton of options. Packaging materials include paper, plastic, or chipboard boxes, foil or poly envelopes, bubble mailers, jute, vinyl, or cotton bags, and many other options. Dunnage, or the internal “protective” material inside the shipment can be Styrofoam, cardboard, kraft paper, soft or rigid plastics, and bubble wrap. Each option has its own cost, key benefit, and impact on the environment. Research what types of shipment packaging make the most sense to adequately protect your product, and then eliminate the use of unnecessary extra materials. Always keep in mind that you can reduce your initial cost and environmental impact by choosing simple, but effective shipment packaging that makes sense for your product and consumer.

Tip 2: Reduce the weight and dimensions of your shipment 

It’s clear that wasteful packaging procedures can drive up initial costs, but keep in mind that any unnecessary materials can also affect your shipment rates due to weight and density. Your parcel rate is determined in large part by region, distance traveled, and weight. Heavy shipments put more strain on trucks and utilize more fuel when hauling loads. As a result, carriers will charge you more for added weight.

Another factor that can affect your shipment cost is dimensional weight. DIM weight pricing is used by carriers to offset the cost of moving large and bulky shipments in their network. This pricing strategy focuses not just on the actual weight, but also the amount of space your shipment takes up. Your DIM weight is determined by the dimensions of your shipment. If the calculated DIM weight is higher than the actual weight, your shipment will be rated on that.

Elaborate packaging with multiple components inside runs the risk of wasted interior space, so making sure that you right-size your package is important. Ensure that there is no empty space within your shipping box after the product and protective materials are added in. Reducing wasted space within your shipment can lower your final bill, and greatly reduces packaging waste that can be harmful to the environment. 

Tip 3: Encourage your customer to use your packaging for returns 

With more people preferring to shop online, the need for convenient returns options increases. Being intentional in how you approach your returns can help lower reverse logistics costs while remaining environmentally conscious.

Every online shopper knows that preparing to ship a return can be a pain.  No one loves rummaging through a garage of broken-down boxes hoping to find one adequate for use. It’s not as simple as grabbing an empty box - the package must be structurally sound and free of pre-existing labels to avoid hiccups on the road. 

Do your customers (and yourself) a favor, and make this process even easier by utilizing return-ready packaging for your orders, including resealable boxes, envelopes, and mailers.  Include pre-printed shipping labels with return addresses and packing slips to help make the process even simpler. By providing return-ready packaging, you’re ensuring that the package is right-sized for pre-paid shipping labels and services. As a retailer, you’re taking steps to avoid possible damages or loss by providing packaging options that securely protect your product while in transit. 

In short, by providing return-ready packaging, you’re taking back control of return shipments by managing several variables that may lead to costly surprises and packaging waste. 

Reducing packaging waste benefits everyone

Retailers have a unique opportunity to improve the eco-footprint left by their businesses. Environmentally friendly shipping practices can help lower emissions on the road, reduce packaging waste headed for landfills, and lower costs. To further improve your environmental impact, consider working with a sustainably minded shipping provider, like PartnerShip. We elect to work with carriers that prioritize energy efficiency in trucks and facilities, minimize air-pollution, and offer transparency through data about fuel usage and impact. Optimizing your packaging is a smart place to start – learn how with our downloadable, free white paper.

2021 Year-End Planning for Your FedEx and UPS Shipments

11/15/2021 — Leah Palnik

The end of the year is usually pretty hectic for a lot of businesses, but 2021 is proving to be one for the books. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.

Ship early
We can’t stress this enough. Delays are becoming more common and will likely get worse the closer we get to Christmas. The FedEx and UPS networks are very strained right now. Fueled by the pandemic and all of its ripple effects, demand for parcel services is at an all-time high. Both FedEx and UPS have suspended service guarantees for their ground services and some of their air/express services, which means you can’t leave things up to chance. Ship early and build in plenty of extra time where you can so you don’t run into major disruptions.

Review holiday shipping deadlines
For retailers, this is especially important. As customers place their orders for holiday gifts, they’ll want to know that they’ll receive them before the big day. FedEx and UPS have released their shipping deadlines, so make sure to review them and plan accordingly. That way you’ll be able to manage expectations appropriately and keep your customers happy.

Prepare for the 2022 rate increases
Don’t sleep on the fact that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers announced that they will be increasing their rates by an average of 5.9%. It’s tempting to take that announced average and budget for your costs to go up by that much, but unfortunately it’s not that simple.

How much your rates will go up in the new year will largely depend on which services you use, your package characteristics, and where you’re shipping to/from. That 5.9% average also doesn’t account for surcharges which can drive up your costs even more. If this all sounds like a major analysis that you don’t have the time to conduct, you’re not alone. That’s why we’ve reviewed the updated rate charts for you. Download our free guide to see a full analysis of what you can expect.

Decoding the Most Common FedEx and UPS Surcharges

10/11/2021 — Jen Deming

Taking a deep dive into your invoice from FedEx or UPS is a smart move for any shipper. But, once you dig into your statement line by line, chances are you’ll see extra charges that may puzzle you. Those unexpected fees are likely shipping surcharges - costs added to your base price by the carrier. 

Though undeniably complicated, it’s important to have a basic understanding of the surcharges your carrier of choice, FedEx or UPS, may apply to your shipment. The more you know about surcharge types and how they impact your bill, the better you can manage your costs. Taking a look at the most common and costly FedEx and UPS surcharges is a great way to become familiar with what you may see on your bill.

Oversized surcharges

When it comes to parcel shipping, oversized shipment charges often lead the way in expensive fees. Ecommerce has led to larger and more irregular-sized shipments in their networks, and both FedEx and UPS implement pricing strategies to offset the extra costs associated with it. Surcharges related to shipment size and specifications are a way to combat packages that could be transported using another service, like LTL freight. These fees are based on both size and weight limits, and vary between carrier. 

FedEx and UPS charge different amounts for these fees, though both can be well into the hundreds of dollars. Even more importantly, the definition of what is considered “oversized” can change and the amount charged increases annually at the very least.

FedEx has three separate fees for larger shipments, and each has a different set of criteria.

• Oversized – Applies if your package exceeds 96 inches in length or 130 inches in length and girth combined.
• Unauthorized – Applies if your package exceeds 108 inches in length, 165 inches in length and girth combined, or 105 pounds in weight.
• Additional Handling – Applies if your package exceeds 48 inches in length, 30 inches in width, and 105 inches in length and girth combined; or if your packages weighs more than 50 pounds (domestic) or 70 pounds (international).

UPS also charges fees based on a shipment’s size or whether it has handling requirements.

• Large Package – Applies if your package exceeds 96 inches in length or 130 inches in length and girth combined.
• Additional Handling – Applies if your package exceeds 48 inches in length, 30 inches in width, or 105 inches in length and girth combined; or if your package weighs more than 50 pounds (domestic) or 70 pounds (international).
• Over Maximum Limits – Applies if your package exceeds 150 pounds in weight, 108 inches in length, or 165 inches in length and girth combined.

These are the qualifications that apply as of 2021. Keep in mind it’s always important to stay up to date on changes and amendments throughout the year.

Peak surcharges

There are certain times when U.S. shipping volume spikes due to an increase in demand. This spike can be caused by seasonal fluctuations, the economy, or any number of other factors. When more shipments are entering the network, it can be a struggle for carriers to meet this demand. Peak surcharges are fees implemented during these times to help offset the extra work it takes to get these packages delivered, and to help weed out the harder to manage, less profitable shippers. Because demand has surged during the pandemic, we’ve seen an unprecedented amount of peak surcharges for both FedEx and UPS, with adjustments being made as needed. As demand stays elevated, they’re likely to continue, which is why it’s important to review what circumstances dictate these charges. 

Any shipments that require an extra level of effort (either by package characteristics, frequency, extra services required, etc.) are most likely to incur peak surcharges. The first step in determining whether you’ll be seeing peak surcharges is reviewing a few important factors that put your shipments at risk. Larger packages and those that require additional handling like those we’ve outlined above have been historically affected, and continue to be targeted. In addition to the size of the package, if you’re a large shipper who’s seen an increase in volume, you’ve likely seen a significant spike in your costs due to additional peak surcharges. 

Prior to the pandemic, peak surcharges were typically only applied during the holiday season, since that’s when FedEx and UPS saw a consistent increase in package volume. How much the fees cost and what packages they applied to varied by carrier and by year. However there are some trends you can note and typically expect. Just like the peak surcharges that have come along as a result of the pandemic, larger shipments are often targeted with extra fees during the holidays. Residential deliveries are also often hit with peak surcharges since so many people are ordering holiday gifts for loved ones during this time of year, straining the carriers’ networks. 

Fuel surcharges

Fuel costs are another common surcharge that will apply to each and every shipping invoice you receive. As commuters, we are well aware that fuel prices are a large component of transportation costs. Whether you’re shipping small package via delivery van, a full trailer, or by plane, you can imagine how much higher those costs can climb. As fuel consumers, we are also aware that the price of fuel does not stay consistent for any set period of time. Something has to be done so that carriers can be sure they aren’t losing money on fuel costs when they fluctuate.

Fuel surcharges are intended to provide an average cost of fuel, so the carrier is protected from loss if fuel prices rise during the term of a contract. Even still, there is no benchmark surcharge amount. The cost can vary by carrier, and as the price of fuel fluctuates, that surcharge will be amended. There are three primary factors that are used to calculate a fuel surcharge: Base Fuel Rate, Base Fuel Mileage, and Source and Interval of the Average Fuel Price. A Base Fuel Rate is the price that determines when a fuel surcharge is to be activated and applied to a bill. Base Fuel Mileage is the miles per gallon that a truck averages on the road. Source and Interval of the Average Fuel Price is a government determined figure and the only component of fuel surcharges that is regulated.

While there isn’t much that you can do to challenge fuel surcharges, it’s important to understand that they exist to protect the carrier from lost profit. Both FedEx and UPS publish up-to-date fuel surcharge information so that you know how this variable affects the cost of your shipment transportation. 

Residential delivery charges

Out of all the surcharges that exist, it’s essential for retailers to understand the impact of residential delivery when planning their shipping costs. A “residential delivery” is defined as one that a carrier must make to a home, whether it’s a single-family dwelling, apartment building, condo complex, or a dorm on a college campus. These charges are necessary for carriers so that they can offset the inconvenience of handing off one shipment to a single location - clearly less efficient than delivering to businesses. 

Both FedEx and UPS apply residential delivery fees to a variety of scenarios. It’s important to know that businesses operating out of the home will be marked as residential. Additionally, if either the declared delivery location (what’s on the label) or the actual delivery address (in the case of an error) is determined to be residential, the fee will apply. These circumstances are important because while you want to keep costs low, trying to pull one over on the carrier is never a good idea.  

Pick-up fees

Both FedEx and UPS implement fees for a variety of pick-up services. Generally, the fee is calculated depending on the immediacy of the pick-up and the type of location. FedEx breaks down pick-up types into three main categories for its FedEx Express and FedEx Ground services: on-call, return on-call, and regular stop. Each pick-up type has a fee that ranges from no charge to a set cost per package. For regular shippers, there is a maximum weekly fee for cost-savings and convenience.

UPS also offers a variety of pick-up options that are associated with their own charges. Commonly used pick-up options include: UPS On-Call Pickup®, UPS Smart Pickup®, day-specific, and on-route pick-ups. Like with FedEx, as needed services are charged by pick-up or package. Regularly scheduled pick-ups are charged weekly fees that may fluctuate, usually depending on shipment volume.

It’s important to know that pick-up fees are higher for residential locations, metro areas, and inside pick-up services. As in the case of most surcharges, these fees can change, and you should always consult either carrier’s latest service guide for a complete picture of costs. If using pick-up services is cost prohibitive for you, you should consider reviewing drop-off locations as an alternative. 

Third-party billing fees

Both FedEx and UPS charge third-party billing fees. These fees are a percentage of the total bill, including base charges and any accessorials needed. As of 2021, UPS and FedEx charge 4.5%. That percentage might sound low, but it can add up fast. If your business is using multiple manufacturers or suppliers to help fulfill your orders, you will be seeing third-party billing fees for each order. It’s also important to note that this fee may cost more in the future, as it has already seen some increases in the past.

FedEx and UPS started instituting a third-party billing largely in response to the increased use of drop shipping by ecommerce retailers. Drop shipping is a process where, rather than keeping inventory on hand, sellers may use a supplier or manufacturer to fulfill and ship orders directly to the customer. As the third-party bill-to, the seller is neither the shipper nor receiver, but is paying the shipping charges.

If you’re often using third-party billing as an option, it may be possible to negotiate rates with your carrier. You may be able to get the fee removed through your agreement, or lower the percentage charged, especially if you’re creating a lot of business for the carrier. 

Other notable surcharges

We’ve covered common surcharges that will impact your shipping invoice the most. However, there are several other service fees that you may see.

• Address correction - associated with changes a carrier must make to correct a given address
• Signature services  - proof of delivery via signature in order to protect against liability
• Weekend pick-up/delivery – completing shipments outside a carrier’s normal hours of operation
• Delivery area – extra effort it takes to drive out to hard to reach locations, such as rural areas

A general rule of thumb to always remember: if your shipment needs services that require extra effort from the carrier, there is probably an associated charge.

How to prepare for these fees

Most FedEx and UPS surcharges are simply part of the business, and are unavoidable. As a component of your total shipping invoice, you should take the time and effort to understand why they’ve been implemented. Most importantly, a thorough knowledge of the basics can help identify how they will impact your business based on your unique shipping needs. It’s unbelievably important to stay up-to-date on surcharge adjustments and increases by looking at annual service guides periodically. Auditing parcel invoices regularly can help identify which surcharges you’re seeing most frequently. 

By understanding how these fees impact your shipping spend, you can create a better plan of action for both your shipping operations and your pricing strategy. Working with a 3PL that is familiar with FedEx and UPS surcharges can help take the stress out of sorting through the data. At PartnerShip, we can help simplify things for your business – from conducting a shipping analysis to publishing resources that offer a Cliff’s Notes version of service guide mayhem.

How Small Retailers Can Save on Shipping Without Volume Discounts

08/12/2021 — Jen Deming

Small businesses have it tough, and the fact that volume shipping discounts aren’t always an option makes shipping expensive. The good news is that small retailers have options to decrease shipping expenses without having to rely on volume discounts. Check out our helpful video to learn how. 

Your No-Nonsense Guide to Dimensional Weight Pricing

06/28/2021 — Leah Palnik

If you regularly ship with UPS or FedEx, you’ve likely encountered dimensional (DIM) weight pricing whether you realized it or not. Essentially it’s a way for the carriers to charge you more for larger, but lighter, packages. And if you’re not careful, it can drive up your costs significantly.

What is dimensional weight pricing?
Dimensional weight pricing is a way to rate your packages based on density in relation to weight. What that means is that instead of rating your package purely based on its actual weight, it also takes into account how much space your package takes up on the carriers’ delivery vehicles.

How do you calculate dimensional weight pricing?
Luckily for you, we have a DIM weight calculator you can use. But if you’re curious about the formula behind it, it’s fairly simple. Start by calculating the cubic size of your package – multiply length by width by height. Then take that total and divide it by 139, which is the dimensional divisor determined by FedEx and UPS. If the resulting DIM weight is higher than your actual weight, the DIM weight becomes the weight you’ll be rated on – otherwise known as your billable weight.

Let’s look at a couple simple examples. If you have a 12x12x12 box, the dimensional weight will be 12 lbs. So if you’re shipping 15 lbs. of books, your package will be rated based on the actual weight of 15 lbs. But if you’re shipping 5 lbs. of ping pong balls, your package will be rated based on the DIM weight of 12 lbs. since it’s the higher weight.

Why is dimensional weight pricing used?
UPS and FedEx want to discourage shippers from using unnecessarily large packaging, and there is one main reason for this. The larger your package is, the more space it occupies on their planes and trucks. This in turn, leaves less room for other packages. UPS and FedEx make more money and work far more efficiently if they’re able to fill up their delivery vehicles with more packages.

The history of dimensional weight pricing
Once upon a time, not all shipments were subject to DIM weight pricing. The DIM factor that FedEx and UPS use has also changed over time – and not in a way that’s favorable to shippers. While the DIM weight formula and shipment qualifications have remained steady for a few years now, there’s no guarantee that it’ll stay that way. Let this be a lesson on how important it is to stay alert on any announced changes from both carriers.

How do you avoid overpaying due to dimensional weight pricing?
The most important thing you should be doing to avoid DIM weight pricing is right-sizing your packaging. You need to consider both the size of the item you’re shipping and also how fragile it is. Items that are at a greater risk of damage will need more cushioning, which will take up more space. Try to find packaging that allows enough room for the needed cushioning, but no more. The smaller you can make your package, while still keeping your item safe, the better.

There are a few resources available that you can use to find the right packaging for the items you’re shipping. UPS has a Packaging Advisor tool on their website that allows you to select your merchandise category and enter your dimensions to get customized packaging and cushioning guidelines.

FedEx also has a number of packaging guides based on the type of item you’re shipping. But beyond that, FedEx even has a Packaging Lab where you can send your packaging in for durability testing or request a design consultation to improve the efficiency of your packaging. Many of the services are free if you have an account.

Keeping your small package costs low
While ensuring you have efficient packaging to avoid DIM weight pricing is one way to help reduce your shipping costs, another is securing discounts with the carriers. That can be difficult for small and medium sized businesses to negotiate on their own. However, when you work with PartnerShip you can access savings that are typically reserved for high volume shippers. Contact our team to learn more.

5 Ridiculously Easy Ways to Reduce Your Shipping Costs

12/21/2020 — Jen Deming

In a time where managing business operating expenses is extra important, one of the first places you should look is reducing shipping costs. But analyzing your small package shipping for areas of improvement can be a time-intensive, detail-oriented process. Not everyone has the time to audit invoices and compare rates. For those who want to get the job done quickly and easily, you’re in luck: there are five quick small pack hacks that smart shippers can easily implement to help reduce costs. 

1. Obtain discounts with carriers
   Lots of shippers don’t realize that the pricing structure you are currently using with your carrier may be negotiable, and there are different types of discounts that your account may receive. FedEx and UPS often offer discounts for new accounts when created online, but shippers beware: these discounts are usually temporary, and your pricing may fluctuate based on terms and conditions. You may lose the discounts entirely if you aren’t meeting shipping minimums and your pricing is subject to change at any time. 

   The more you ship, the better the discounts you’re likely to receive directly from FedEx or UPS. However, even if you have a lower shipping volume, there are still ways for you to obtain discounts. If your business belongs to a trade association or a local chamber, you may have access to discounted rates through your membership. PartnerShip manages over 130 association shipping programs that offer FedEx discounts. If you’re a member of an industry group, look into your member benefits or reach out to our team to find out if you’re eligible.

2. Take advantage of free packaging

   The packaging and supplies you need to properly contain your shipments are important, but can be costly. However that doesn’t mean you should skimp on new materials or reuse old packaging – doing so can compromise the integrity of your shipment and increase the risk of damage. The good news is, some carriers offer free shipping supplies to help ensure your package is secure. Both UPS and FedEx offer free packaging supplies for customers that you can order online and have delivered, free of charge. With free envelopes, packing tubes, boxes, and poly bags, you can be sure your small package shipment will travel safely to its final destination, all while creating some space in your shipping budget.

3. Make the most of Multiweight and Hundredweight options

   From insurance plans to your cable bill, everyone knows you can save money from bundling. That same principal can also apply to your shipping. Both FedEx and UPS offer options for customers who are shipping multiple packages to the same location that can help you save money versus the rates you would pay if they’re considered individual packages. For businesses shipping frequently to the same locations, FedEx multiweight pricing is an efficient and cost-effective service option. UPS has a similar program called UPS Hundredweight. 

   There is a catch for shippers interested in these options — it isn’t available to just any business. FedEx Multiweight and UPS Hundredweight must be negotiated into your contract, or offered as a part of comprehensive shipping program, like the association programs managed by PartnerShip.

4. Avoid dimensional weight pricing

   To combat the increase in bulky packages entering their systems, FedEx and UPS have implemented dimensional (DIM) weight pricing. With DIM weight pricing, cost is calculated based on package volume, rather than weight. The higher the volume, the more space it takes up in delivery vehicles, which means there is less room for other packages. If a package isn’t particularly heavy but is taking up a lot of space, that’s costly for the carriers. 

   After calculating your DIM weight, measure the result against your package’s actual weight; the greater of the two will become your billable weight. The best way that you can offset volume-based pricing is to take a hard look at your current packaging procedures. Unused space is a cost-conscious shipper’s worst enemy, so don’t use a package that’s oversized for the product inside and consolidate your orders when possible to ensure you’re not wasting space.

5. Take control of inbound shipping

   Another way to save on small package shipping is by taking control of your inbound shipping procedures. It’s common practice for many businesses to allow their inbound small package orders to be arranged by the vendor. But often times that leads to higher order costs for you. By instructing your vendor to ship through your account, you can reduce your costs through a few simple steps:

   • Review your vendor invoices to determine whether you have access to better pricing through your FedEx/UPS account vs. your vendor’s account.
   • Create routing instructions that include clear directions on which carrier, account, and service to use for your shipments. 
   • Ensure vendor compliance by providing your routing instructions to your vendors and regularly reviewing your invoices for accurate pricing.

While taking an in-depth look at how to minimize operating expenses can be time-consuming, these small package hacks give you a few quick ways to ship smarter. For more ways to save, PartnerShip can help.

It’s even more important to cut costs where you can, as FedEx and UPS rates are on the rise. Our free guide will help you easily identify the highest rate increases so you can more easily manage your budget.  

The Essential Guide to the 2021 FedEx and UPS Rate Increases

12/08/2020 — Leah Palnik

It’s been a wild and unpredictable year, but there’s one thing you can count on as we head into 2021 – the annual FedEx and UPS rate increases. For the fourth year in a row, both carriers announced an average increase of 4.9% for air and ground parcel services. The new rates for UPS will go into effect on December 27, while the new rates for FedEx will go into effect a week later on January 4.

How to budget your parcel costs for 2021
While it may be tempting to budget for a 4.9% increase, you have to dig a little deeper to uncover how much your costs will actually go up in 2021. The actual rate increases vary quite a bit depending on the service you use and your package characteristics.

Both carriers have made the new rates for 2021 available:

• FedEx 2021 standard rates
• UPS 2021 daily rates

You will also need to account for updates to FedEx and UPS surcharges. Common surcharges like Residential Delivery and Address Correction will be more expensive in the new year. But on top of that, FedEx and UPS have both made changes that could cause a package to incur a fee that it wouldn’t have in the past. For example, they both broadened the qualifications for their Additional Handling fee and have updated the list of zip codes for Delivery Area surcharges.

You can view a complete list of the changes that the carriers have each posted:

• FedEx surcharge changes
• UPS surcharge changes

How to analyze the 2021 FedEx and UPS rate increases
While it’s imperative for you to be aware of the changes coming ahead in the new year, combing through every detail of the new rate charts is challenging and time-consuming. A good place to start is to identify the changes that will have the most significant impact on your budget. First, take a look at your shipments from the last year and identify trends for the services you typically use, your package characteristics, and zip codes. From there you can use the new report from PartnerShip, which highlights the areas with the highest increases and outlines the important changes.

The state of the parcel industry
Aside from the general rate increases, it’s important to understand what’s happening within the parcel industry. Within the past several months, the coronavirus pandemic has brought on a great deal of logistical challenges. Carrier networks have been strained as they struggle to keep up with demand and deal with restrictions. As a result, both FedEx and UPS have instituted peak surcharges.

Most notably, since the beginning of the pandemic FedEx and UPS have been applying peak surcharges to international shipments. Air cargo capacity has been limited which has disrupted the global supply chain and driven costs up.

Additionally, residential deliveries have increased substantially as more people are relying on online shopping. High-volume B2C shippers specifically have been ramping up their business. FedEx and UPS have responded to this increased demand by instituting peak surcharges. Instead of simply applying a surcharge on all residential shipments during the holiday season like they’ve done in the past, UPS and FedEx are applying it to those shippers with a large volume of packages or those who are experiencing a significant increase. That’s good news for many small businesses, but tough on those larger ecommerce retailers.

Even if these peak surcharges don’t apply to your business right now, it doesn’t mean that you’ll forever be immune. There are still a lot of unknowns related to the coronavirus pandemic and how it will continue to impact the supply chain. You will need to stay vigilant and keep up to date on announcements from FedEx and UPS.

What you can do to combat rising shipping costs
With everything the industry is experiencing right now, shippers don’t exactly hold the power. Add the general rate increases on top of that, and you may feel helpless against rising costs. However, there are things you can do to mitigate the damages. Download our guide to the 2021 FedEx and UPS rate increases to help identify the problem areas. Then contact PartnerShip to find out if you qualify for one of our discount shipping programs, and we'll help you ship smarter.

Carrier Closures for the 2020 Holiday Season

11/19/2020 — Jen Deming

2020 has been a year unlike any other. With the holiday season upon us, managing your shipment timelines is more important than ever. Most carriers have strict cut-off dates to ensure your holiday cheer is delivered on time, and with COVID-19 stretching available carriers extra thin this year, it’s more important than ever to plan accordingly. Whether you’re shipping small packages to customers, or need to order seasonal supplies for your business, we’ve broken down the most important holiday shipping dates that you need to know.

Freight carrier holiday schedule

• UPS Freight will be closed November 26-27, December 24-25, and January 1. There will be modified service hours on New Year’s Eve, December 31.
• YRC Freight will be closed November 26-27, December 23-25, and January 1-2.
• XPO Logistics will be closed November 26-27, December 24-25, and January 1.
• Old Dominion will be closed November 26, December 24-25, and January 1. There will be limited service hours on November 27 and December 31.
• New Penn will be closed November 26-27, December 23-25, December 31, and January 1.
• Pitt Ohio will be closed November 26-27, December 24-25, and January 1.
• Reddaway will be closed November 26-27, December 24-25, and January 1. There will be limited service hours on December 23 and December 31.
• Dayton Freight will be closed November 26-27, December 24-25, and January 1.
• R&L Carriers will be closed November 26-27, December 24-25, and January 1.
• Estes will be closed November 26-27, December 24-25, and January 1.
• Central Transport will be closed November 26 and December 25. There will be limited service hours on November 27 and December 24.
• Roadrunner will be closed November 26-27, December 24-25, and January 1.
• FedEx Freight will be closed November 26-28, December 24-25, and January 1. 
• Holland will be closed November 26-27, December 24-25, and January 1. There will be limited service November 27, December 23, and December 31.
• AAA Cooper will be closed November 26-27, December 24-25, and January 1.
• ArcBest will be closed November 26-27, December 24-25, and January 1.

Small package carrier closures and deadline dates

With a holiday season projected to be bigger than any other, it’s super important to review holiday carrier schedules and deadlines. For your shipments moving with FedEx, make sure to reference the FedEx holiday schedule so you can plan ahead. If you're using UPS to ship during the season, remember to check the UPS year-end holiday schedule beforehand.

PartnerShip schedule

If the unprecedented volume of holiday shipments has you saying "no, no, no" instead of "ho, ho, ho," the experts at PartnerShip can help. Please keep in mind that our office will be closed on November 26-27, December 25, and January 1. Happy Holidays from PartnerShip, and hang in there -  we're welcoming 2021 with open arms!

5 Crucial Holiday Shipping Strategies for Ecommerce Sellers

10/09/2020 — Leah Palnik

As a consumer, it might feel like it’s too soon to start thinking about the holidays, but retailers know that waiting is not an option. If you’re an ecommerce seller, you’ve probably already been stocking up your inventory and preparing for the increase in traffic to your site. As you’re getting ready for this busy time of year, keep these crucial holiday shipping strategies in mind.

1. Reduce your parcel rates
   Shipping orders to your customers can get expensive, fast. While some of the big players in ecommerce can negotiate discounted rates directly with FedEx and UPS, that doesn’t mean that the smaller sellers have to suffer. If you belong to a trade association or a chamber of commerce, check out their member benefits. Many groups offer parcel discounts with UPS or FedEx that are included as part of your membership.


2. Consider on-demand warehousing options
   If you don’t need year-round warehouse space, but your orders ramp up significantly during the holiday season, consider using on-demand warehousing. This can help alleviate the pressure on your existing operations, in a time when it’s crucial that everything runs smoothly. A key part of this strategy is also the added ability to reach your customers sooner. It’s no secret that meeting customer expectations for deliveries is essential to your business, and with the right warehousing partner, you’ll be able to reduce transit times and gain access to cost-effective expedited services.


3. Clearly communicate shipping deadlines
   There are some of us who are guilty of waiting until the last minute to do their holiday shopping. When’s the last day to order for Christmas? Do you offer expedited options or any special seasonal guarantees that could give you a leg up over the competition? Managing customer expectations for holiday shipping will increase your customer satisfaction. Clearly communicate this information on your website, during the purchasing process, and in emails to your subscribers.


4. Consider special promotions
   Now is the time to pull out all the stops to maximize your sales. People are looking to buy, and it’s your job to incentivize them to spend their hard earned dollars on your site. According to a report by the National Retail Federation, 50% of shoppers cited a limited-time sale or promotion as the reason they were swayed to purchase an item they were on the fence about.
   
   Even more notable, 64% of shoppers said that free shipping has influenced them to make a purchase. Offering free shipping has become the new normal in the world of ecommerce. If you’re worried about the costs of “free shipping” there are several different strategies you could try. For example, try setting the free shipping threshold above your average order amount to increase the amount people spend when making a purchase on your site. When executed properly, consumers will be more likely to add items to their cart to meet the minimum and it becomes a win-win.


5. Set up a streamlined returns process
   With increased holiday sales comes the inevitable – returns. According to a Narvar Consumer Report, 74% of customers said return shipping fees will prevent them from making a purchase. On the flip side, 72% said that a “no questions asked” return policy would make them more likely to buy from a retailer. The influence of the return policy on the purchase decision is undeniable. Make your return policy as customer friendly as possible and communicate it clearly at the beginning of the shopping experience. Also, take proactive steps like providing return labels in the original order and offering in-store returns so it is less of a headache for you and your customers.

Striking a balance between appealing customer promotions and the right holiday shipping strategies can help make your season bright. If you need to reduce your parcel costs or could use some help with storage and fulfillment, PartnerShip has you covered. Our shipping and warehousing services set ecommerce sellers up for success. Contact us today to learn how you can ship smarter.

How to Package Parcel Shipments Cost Effectively

06/30/2020 — Leah Palnik

When evaluating ways to lower your shipping costs, you don't want to overlook the impact that packaging has on your bottom line. In fact, there are a few high cost culprits that may surprise you. Learn how to package your parcel shipments more cost effectively with these 4 simple tips.

Looking for an intro into the fundamentals of proper packaging? We have the ultimate guide.

A Practical Guide to Parcel Shipping Rates

04/23/2020 — Leah Palnik

The ever-rising cost of parcel shipping is a hot topic. FedEx and UPS raise their rates regularly and find clever, new ways to recoup costs. The changes aren’t always clear and can catch shippers by surprise. However, if you have a solid understanding of what determines small package rates and what to look out for, you’ll be in a good position to manage your costs.

How parcel shipping rates are determined

• Weight. No surprise here, but how much your shipment weighs plays a large part in how much it will cost to ship. If you take a look at the service guides for UPS and FedEx, you’ll notice that the heavier the package, the higher the rate.
• Dimensions. You can’t look at just the weight alone. In fact, your package dimensions could cause your shipment to be rated at a higher weight, thanks to what is known as dimensional (DIM) weight pricing. Carriers use this to ensure you’re paying for the space that your shipment takes up in their delivery vehicles. Larger packages take up more room, leaving less space for other deliveries. To avoid this increase in your parcel shipping costs, it’s imperative that you’re efficient with your packaging.
• Service. If you need your shipment to get to its destination sooner rather than later, you’re going to pay for it. Air services that offer delivery overnight or next day will cost you the most. In comparison, if you can plan for some extra time, using a ground service will save you.
• Distance. Your origin and destination ZIP codes play a big part in determining your rate. The farther your shipment needs to travel, the more you’ll pay. This is based on groups of ZIP codes that parcel carriers refer to as zones.
• Fuel. This is a tricky one to put your finger on because both UPS and FedEx will make adjustments on a weekly basis based on information published by the U.S. Energy Information Administration (EIA). The surcharge is a percentage and applies to the base rate, as well as a number of accessorial charges.
• Surcharges. Based on your shipment’s characteristics, you can be hit with additional fees known as accessorials or surcharges. These fees are assessed for things like residential deliveries, additional handling, and oversized dimensions. The best thing you can do is educate yourself on the common fees so you can budget for the unavoidable ones or make some changes to avoid the ones you can.
• Discounts. Not every account is created equal. You may be able to secure discounts directly with your carrier if you have significant volume. For everyone else, you can get discounts by working with a third-party like PartnerShip.

The history of FedEx and UPS rate changes
At the end of every year, FedEx and UPS both announce a general rate increase (GRI). In recent history, it has been an average increase of 4.9%. However, that is only an average – meaning that some rates will actually increase by more or less based on service and package characteristics. Throughout the year, keep track of the type of parcel shipments you process – the services you’re using, the weight and dimensions, and zip codes. That way you’ll be able to focus on determining the rate increases that will affect you the most when the time comes. This information can be overwhelming to go through, so get help where you can. PartnerShip publishes a guide to the rate increases every year that can be a great resource for when you’re planning your budget.

Changes to parcel shipping costs to look out for
It’s hard to predict exactly what changes FedEx and UPS will make to their rates, but it’s important to note that they don’t leave them untouched outside of the GRI. In fact, over the past few years they have been making more changes throughout the year. These changes tend to affect surcharges rather than the base rates. Not only how much they’ll cost you, but also how they’re defined. For instance, FedEx and UPS recently lowered the weight threshold for the Additional Handling fee. That means that more packages will get dinged with that surcharge. Obviously this isn’t a rate increase, but it’s a way that your costs could increase.

FedEx and UPS also make changes based on long-term industry trends, seasonal demand, or unforeseen changes in the market. When their networks are strained the most, FedEx and UPS are bound to react. For example, during past peak holiday seasons when online orders are known to be at an all-time high, UPS instituted a surcharge for residential shipments. And most recently, during the COVID-19 pandemic, FedEx and UPS instituted a temporary surcharge on international shipments due to air cargo capacity being limited.

The bottom line on parcel shipping
Understanding all of the factors that make up your parcel rates is the first step to uncovering opportunities to cut your costs. Along with having that solid foundation of knowledge, keep a good record of your parcel shipments and their details so you can accurately forecast your needs and make adjustments. Lastly, stay on top of the latest updates from FedEx and UPS by reviewing their published changes and signing up for service alerts.

You don’t have to navigate these changes alone. PartnerShip provides resources to help you make sense of parcel shipping rates and can help you cut your costs. Contact us to get started.

2020 FedEx and UPS Rates Explained

12/10/2019 — Leah Palnik

UPS and FedEx rates are slated to go up in 2020 by an average of 4.9%. The changes will go in effect for UPS on December 29, while the FedEx rates go into place on January 6.

If you’re planning to budget for your costs to go up 4.9% in the next year, you better think twice. The announced average doesn’t paint a complete picture. The rates for some packages will be increasing less than 4.9%, but that means that the cost to ship other packages is increasing far more. What you’re shipping, where you’re shipping it to, and what service you’re using will ultimately determine how much you should budget for your shipping costs in the new year.

• FedEx 2020 standard list rates
• UPS 2020 daily rates

FedEx and UPS surcharges
The rates, however, are only one part of the equation. You also have to take into account the additional fees that UPS and FedEx tack on. It’s more important than ever to be mindful of what could qualify your packages for these surcharges. Not only do the costs increase year over year, but the carriers also make adjustments to how the charges are defined – making it more likely that your packages will be hit with them.

A prime example of this is the change both FedEx and UPS made to their Additional Handling fee for 2020. They’ve lowered the weight threshold to 50 pounds from 70 pounds, which means your costs could go up significantly if you ship packages within that window.

• FedEx surcharge updates for 2020
• UPS surcharge updates for 2020

Industry trends
Online shopping has had a profound effect on the parcel industry and the way that FedEx and UPS operate. The carriers are moving more residential deliveries and an increased amount of larger packages, as consumers have become accustomed to being able to order almost anything online and receiving it in 2 days or less.

The changes FedEx and UPS have instituted in recent years and are making in 2020 are a direct response to these industry trends. In the past several years, they’ve broadened the use of dimensional weight pricing, added new peak surcharges, and drastically increased the surcharges for larger packages.

Understanding the 2020 rate increases
We know how daunting it is to analyze the 2020 FedEx and UPS rates, so we’ve done the hard work for you. In our free white paper, we break down the new rate charts and simplify some of the complicated changes. It’s the best way to find out what will cost you the most in the year ahead. Looking for ways to offset the rate increases? We can also help with that. Contact us to find out if you qualify for one of our discount shipping programs.

Parcel vs Freight: What Works Best for You?

10/22/2019 — Jen Deming

The differences between parcel shipping and less-than-truckload (LTL) freight shipping can be difficult to identify, at least on the surface. If you're not using either service regularly, it can be challenging to know which shipping option you really need. But, there are some definite factors that make a difference to a shipper's experience, like transit times, pricing structure, and security risk. Knowing more about the key differences of parcel vs freight shipping can help determine which makes the most sense for your shipment.

Risk and security

Packaging and handling practices can vary between parcel vs freight shipping, affecting your freight's risk of damage. Typically, parcel shipments are smaller, individually boxed shipments that move separately within the carrier system. Most are under 70 lbs., but they are accepted up to 150 lbs. Freight loads are larger and most often consist of multiple boxes or items collected onto a pallet, or within strapped-together crates, and ship together as a group. Both types of shipments have packaging requirements that include protective material inside the container to help prevent damage. Because freight shipments often use shrink wrap or other binding material to keep boxes together, loss is minimized. 

Because of their smaller size, parcel shipments can be easily handled and are generally auto-sorted through the carrier conveyor system. They are then taken to a regional location and transferred through multiple stops and service terminals until final delivery. Because of all the handling, combined with the smaller size of loose parcels, there is an increased risk for lost or misrouted boxes. Freight shipping also includes loading and transfer at multiple stops, but it's less frequent than parcel services. Fewer stops means less loading, but because the pallets may need to be moved with a forklift, there is a risk of damage associated with handling that shippers must keep in mind.

Driver service level

A key point to keep in mind when considering parcel vs freight shipping is the truck driver's level of involvement when it comes to handling the shipment. Parcel shipments moved by common carriers such as FedEx or UPS are loaded, unloaded, and delivered by hand. A shipper is responsible for proper packaging and labeling, and a receiver must check the shipment carton count and for damages. But generally, a driver will take care of handling, including front door pick-up or inside delivery. 

Freight shipping is an entirely different story. The driver only moves your freight from pick-up to destination; it is up to the shipper and consignee to have a team ready for the loading and unloading of the freight. This means the driver will not assist. Driver assistance can be requested, but because it is considered a special service, expect to pay extra. Additionally, accessorials such as inside delivery or limited access locations may incur other fees on top of regular shipping charges. 

Pricing and cost efficiency

One of the most significant differences in parcel vs freight shipping relates to how pricing is calculated. Freight pricing is determined by several variables, including distance traveled, fuel cost, weight, additional services, and the classification of the shipment. Lane pricing is set by carriers and certain routes across the country can be more competitively priced than others depending on the volume of industry or location type. For example, shipping off-mainland or to a densely congested city's downtown area can be pricey. Depending on your product type, or the density of your shipment, the freight class can either increase or decrease. Lastly, carriers tend to have different levels of liability coverage, depending on freight class, in the event of damage claims on a shipment. Freight class is an extremely important factor for freight shippers as it pertains to cost.

Parcel pricing can also be complicated. The shape, weight, and size of a package all affect the cost, in addition to the type of service requested. Shorter, expedited transit times cost more than standard ground shipping options. Additionally, dimensional (DIM) weight pricing has become popular with common carriers. Dimensional weight bases price on the package volume in relation to its actual weight. The practice was implemented in an effort to minimize awkwardly-sized shipments that waste space in a carrier's truck. It's important to properly calculate your dimensional weight so that you can accurately predict the cost of your shipment.

Knowing the differences of parcel vs freight shipping can help you make the right choice in service and save you in shipping costs. If you're shipping larger, heavier items, or can combine multiple shipments into a single load, using an LTL freight service is right for you. If you're shipping smaller, single boxes and want faster door to door service, parcel shipping is the better option.

Understanding how pricing is calculated for both, and what you can expect your shipment to encounter during transit, will help you ship smarter. If you're still unsure which would make the most sense for your business, call 800-599-2902 or contact us today.

UPS and FedEx Peak Surcharges Announced for 2019

09/24/2019 — PartnerShip

UPS and FedEx have both announced that they will not apply peak season surcharges on residential deliveries this holiday shipping season. However, both companies will continue peak surcharges on large shipments and those requiring additional handling during the holidays.

During the 2018 holiday season, UPS applied a per package residential peak delivery surcharge of $0.28 for ground and $0.99 for air shipments. This year, the company is leveraging its expanded air and ground capacity, and automated sorting hubs and processing facilities, to pass cost savings on to customers in the form of no residential delivery peak surcharge. More than 75% of UPS's small package volume will pass through these automated facilities in peak 2019.

“We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said David Abney, UPS Chairman and CEO. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”

This is the third holiday season FedEx has not added additional peak surcharges on residential deliveries. With UPS and FedEx both not applying a residential delivery surcharge this year, it is great news for e-commerce retailers and online shoppers. Online sales are expected to grow 14% to 18% this holiday season, and in the past, these residential delivery surcharges were passed along to shoppers in the form of higher shipping costs.

It’s important to remember that both UPS and FedEx are implementing peak surcharges this holiday season on larger packages and those that require additional handling.

UPS peak surcharges will apply to larger packages from October 1 through January 4:

• $31.45 per package for shipments that qualify as large (a 20% increase from 2018)
• $250.00 per package for shipments that qualify as over maximum limits (a 51.5% increase)

FedEx and UPS rates will be going up after the holiday season! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

Your Guide to the 2019 FedEx and UPS Rate Increases

12/17/2018 — Leah Palnik

FedEx and UPS rates will be going up in 2019, and it’s more important than ever that shippers know how to mitigate the impact to their business. In November, FedEx announced that its small package rates will increase an average of 4.9% as of January 7, 2019. In December, only a few weeks before the change is set to take place on the 26th, UPS announced the same average increase.

If you’re thinking that means you can budget your costs to go up by 4.9%, you are sorely mistaken. There is a lot to unpack with these rate increases. For starters, some services are increasing at a higher rate than others – meaning that depending on the services you commonly use, your costs could go up significantly more than the announced average.

Other factors determine how much more you will pay for your FedEx and UPS shipments in 2019. You will need to look at the new rates based on your package characteristics, as well as how far your shipments are being sent. Here are the released rates for 2019:

• FedEx 2019 standard list rates
• UPS 2019 daily rates

FedEx and UPS surcharges
The announced average increase only covers the base rates. You’ll also need to consider what fees and surcharges apply to your shipments. Many of these surcharges are increasing quite a bit. Here are the announced changes:

• FedEx surcharge updates for 2019
• UPS surcharge updates for 2019

One surcharge to take note of is the Third-Party Billing fee. A couple years ago, UPS introduced this in response to the growing popularity of drop shipping. Right now if you use third-party billing, you will incur a charge of 2.5% of total cost. Beginning December 26, UPS will be increasing that charge to 4.5%. FedEx is leaving its Third-Party Billing charge unchanged at 2.5% for 2019. This is just one example of why it’s important to evaluate the changes that come out each year from UPS and FedEx. One small difference can have a huge impact on your costs.

The most costly surcharges continue to be those that apply to shipments that qualify as “Unauthorized” or “Over Maximum Limits.” If you send a package with UPS that weighs more than 150 lbs., exceeds 108 inches in length, or exceeds a total of 165 inches in length and girth combined, you’ll be looking at a $850 charge on top of your base rate. That same package will incur a $675 charge if you ship it with FedEx. Either way, you’ll be paying a huge premium to ship larger, bulkier packages.

Peak season strategies
It’s also important to note that ahead of the 2019 general rate increase (GRI), FedEx and UPS both announced peak season surcharges. For those larger packages, the carriers applied additional surcharges during the busiest time of year. A huge difference between the two, however, was an additional charge on residential shipments. UPS applied a $0.28 peak surcharge on residential ground shipments, while FedEx decided that for the second year in a row, it wouldn’t follow suit. If you’re a retailer that delivers a large amount of customer orders over the holidays, that charge can add up fast.

Trends in the small package industry
If you zoom out on all of these changes from FedEx and UPS, there are a few insights to glean.

1. FedEx and UPS tend to institute similar pricing strategies. The carriers have a habit of matching each other when announcing average increases, and when one introduces a new charge or a different way to account for something, the other tends to do the same down the road. That doesn’t mean that it doesn’t matter which carrier you use. Instead, it’s important to stay on top of the changes and evaluate your options on a regular basis so you’re always using the service that works best for your budget.
2. Many of the changes over the years have been put in place as a result of the ecommerce boom. With more shipments coming from online orders, comes more trends that strain the carriers’ networks. For example, ecommerce has led to more residential deliveries and more deliveries of oversized packages. That’s why you’ll see the carriers making changes that help them to recoup some of the costs associated with these trends.
3. Both carriers have been making changes throughout the year, instead of just during the GRI. For example, FedEx and UPS both increased their Additional Handling surcharges ahead of the new year – in September and July respectively. When UPS first introduced peak surcharges for residential ground shipments, that was also done outside of the annual announcement. This just highlights how important it is for shippers to stay aware throughout the year.

We know you don’t want to comb through every tedious page of the 2019 FedEx and UPS service guides and compare them to your current rates. That’s why we did the leg work for you. In our free white paper, we break down where you’ll find the highest increases and explain some of the complicated changes you need to be aware of. If you’re looking for ways to offset the rate increases, we can also help with that. If you’re a member of one of the many associations we work with, you can get access to exclusive discounts. Contact us and we’ll find a way to help you save.

FedEx and UPS Peak Season Surcharges: The Important Differences

08/09/2018 — Leah Palnik

FedEx recently announced that for the second year in a row, it won’t be applying a peak season surcharge on residential shipments. This is good news for retailers who expect a significant amount of e-commerce orders over the 2018 holiday season.

UPS, however, will be instituting a surcharge on residential ground shipments from November 18 through December 1 and then again from December 16 through December 22. UPS will be charging $0.28 per package for most residential shipments using ground services. For UPS air services the fees are as high as $0.99 per package.

UPS delivered around 700 million packages during the 2017 holiday season – a huge jump compared to the rest of the year. Ordering online has become so commonplace and easy for shoppers, and the carriers are feeling the effects. The increase in volume over the holidays drove UPS to introduce this new peak surcharge for the first time last year.

Typically UPS and FedEx have comparable rates and surcharges and will mimic each other’s changes, so this is a notable distinction between the two small package giants.

FedEx is sending a clear message to shippers. “FedEx delivers possibilities every day for millions of small- and medium-sized businesses,” said Raj Subramaniam, executive vice president and chief marketing and communications officer at FedEx Corp. “We are demonstrating our support for these loyal customers during this critical timeframe by not adding additional residential peak surcharges, except for situations where the shipments are oversized, unauthorized or necessitate additional handling.”

It’s important to note that both carriers are implementing charges on larger packages. With the rise of e-commerce, people are ordering items online that they would’ve exclusively purchased in-store in the past – including televisions and appliances. FedEx and UPS have made several adjustments to account for these trends, including a pushback on larger packages. Heavy and bulky packages don’t move through their automated systems and require more attention. FedEx and UPS are putting a price tag on that loss in efficiency and shippers need to stay aware.

FedEx will apply peak surcharges for larger packages from November 19 through December 24:

• $3.20 per package for shipments that necessitate additional handling
• $27.50 per package for shipments that qualify as oversize
• $150.00 per package for shipments that qualify as unauthorized

UPS will apply peak surcharges for larger packages from November 18 through December 22:

• $3.15 per package for shipments that necessitate additional handling
• $26.20 per package for shipments that qualify as large
• $165.00 per package for shipments that qualify as over maximum limits

If you’re not careful, the surcharges can add up fast. These peak surcharges are in addition to the already existing surcharges that apply to larger packages, and any others that may apply including delivery area and residential surcharges.

Retailers should take note of these peak season changes to ensure a profitable 2018 holiday season. If you see a significant amount of online orders over the holidays and ship with UPS, you’ll be paying an extra $0.28 per package, which will eat into your bottom line.

To prepare, take a look at what you shipped last year around the holidays and determine a forecast for this season. From there you’ll be able to see how much more you can expect to spend during the designated peak season. You may find that switching from UPS to FedEx for the busiest time of the year will provide you with a decent cost savings. Depending on the billable weight of your shipment and the destination, the base rate could be lower with FedEx – compounding the savings during peak season. It’s worth evaluating the options, when the holiday season can make or break your year.

There are many factors to consider when deciding how to ship your small package shipments. You need an expert on your side. ParterShip manages shipping programs for over 140 associations, providing exclusive discounts on small package shipments to their members. To find out if you qualify or to learn how you can ship smarter, contact us today.

FedEx and UPS rates will be going up after the holiday season! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explain some of the complicated changes you need to be aware of.

Your Guide to Proper Packaging

05/30/2018 — Leah Palnik

Small Package Shipments
When picking a box for your products, you want one that is in good condition (no holes, rips, or dents) and is sized just right. There should be just enough space for the needed cushioning and no more. If you use a box that is excessively large you run the risk of being charged according to your dimensional (DIM) weight, which can get quite pricey.

How you cushion your contents will depend on the product you’re shipping. In general, you can protect the contents of your package with bubble wrap, foam cushioning, paper pad, or packing peanuts. This will help to prevent damages caused by movement and vibration that occur during transit.

Then it’s time to seal and label your package. Use packing tape rather than duct tape or masking tape, and seal your box using the H taping method. Remove any old labels from the box and place your label on the largest surface. Labeling is an important step for proper packaging, because it helps get your shipment to the right place without any unnecessary delays.

Freight Shipments
When deciding how to package your freight, consider the size and weight of your shipment and how it will be handled. What kind of protection will it need? Will it be on a dedicated truck or will it be moved on multiple vehicles?

Palletizing your freight will give it a solid base and will make movement on and off the truck easy and safe, making it a good choice for many different types of loads. Wooden pallets are the most common, and are typically recommended by carriers like FedEx and UPS Freight. However, you may consider metal, plastic, or corrugated pallets depending on what you’re shipping.

For the cartons on your pallets, make sure the contents inside are packaged properly with the needed impact protection and each carton is labeled with the shipper and consignee information. While stacking, you need to consider how it will affect the strength of your shipment. Start by placing heavier cartons on the bottom with lighter boxes at the top, and distribute the weight evenly. Use an aligned, column pattern while stacking and make sure there is no overhang.

Once your pallet is stacked, you’ll want to secure it with stretch-wrap and banding. The stretch-wrap should go around the cartons several times and be twisted every other rotation for increased durability. For banding, use sturdy steel, rayon, polypropylene, nylon, or polyester straps.

You may also want to consider crating if you’re shipping fragile freight. First, select a crate that is constructed from quality lumber. Most carriers will recommend plywood rather than oriented strand board (OSB), medium-density fiberboard (MDF), or particleboard. You also want to make sure your crate is sized appropriately, with excess space kept to a minimum.

Proper Packaging Is Key
Avoiding damaged freight and a claims nightmare starts with proper packaging. Along the way, you’ll also save yourself from costly DIM weight charges and increase the durability of your shipments. The time you spend up front to make sure you have proper packaging will be well worth it. Get in-depth instructions by downloading our free white paper – The Ultimate Guide to Packaging Your Shipments!

The 2018 FedEx and UPS Rate Increases: A Closer Look

11/20/2017 — Leah Palnik

With the New Year approaching, it’s time to look at the UPS and FedEx rate increases for 2018 and how they will affect your costs. In September, FedEx announced an average increase of 4.9% on Express and Ground services. UPS joined the party in October, announcing that they will also be increasing their rates by an average of 4.9%. The new 2018 UPS rates will take effect on December 24, 2017, while FedEx will be instating them a week later on January 1, 2018.

The averages might be the same, but the rates vary. With higher increases for some services and lower increases for others, you can’t budget based on your costs increasing 4.9%. It’s important to look at what services you use, your package characteristics, and the locations you’re shipping to, and then evaluate the new rate charts to find your biggest cost offenders from the 2018 FedEx and UPS rate increases.

On top of the FedEx and UPS rate increases for 2018, there are additional updates that are likely to affect your shipping costs. First, UPS is lowering its dimensional (DIM) weight divisor from 166 to 139 for domestic packages less than or equal to one cubic foot (1,728 inches) in size. With this change, UPS and FedEx are back in line with each other on how they calculate dimensional weight. Both carriers will now use 139 for all domestic and international packages.

It’s been a wild ride the past few years with multiple changes to which packages DIM weight pricing applies to and how it’s calculated, so this is a welcome stabilization. However, a lower divisor means a higher chance that your package will get billed at your DIM weight, rather than your actual weight. If you ship packages one cubic foot or under with UPS, it’s important to take note and make changes to eliminate any unused space in your packaging or consolidate orders when possible.

Surcharges are also increasing, with some at alarming rates. Most notably, in 2018 FedEx and UPS are coming after larger, oversized packages. Not only are they increasing at a higher rate than most surcharges, they are by far the most costly. For example, the FedEx Unauthorized Packages fee is increasing from $115 to $300 and the UPS Over Maximum Limits charge is increasing from $150 to $500. The shipping trends that have resulted from the rise of e-commerce has taken its toll on the carriers and they’re having to move more and more oversized packages that can’t go through their automated systems. Time is money, so they’re tacking on hefty fees to make up for it.

Ahead of the new FedEx and UPS rate increases for 2018, new holiday peak season charges will also apply. UPS is adding peak surcharges on domestic residential packages during the busiest shipping days of the year – from November 19 to December 2 and from December 17 to December 23. These fees will add up quick when you have an increased amount of orders over the holidays. 

In a notable departure from UPS, FedEx decided not to add a peak season surcharge this season. Instead they opted to increase surcharges for packages that are big or bulky enough to require special handling. UPS is also increasing the cost of larger packages by adding additional peak season surcharges on top of the already existing surcharges. The 2018 UPS rate announcement included increases for these surcharges for the next holiday season, so you can expect this trend to continue.

The 2018 FedEx and UPS rate increases are proof that the carriers are getting smarter, hitting shippers where it hurts most. Luckily, you don’t have to navigate the changes alone. The shipping experts at PartnerShip have evaluated the new rate charts and we have completed a detailed analysis, so it’s easier for you to assess the impact on your shipping costs. Download our free white paper today!

FedEx Announces General Rate Increases for 2018

10/05/2017 — Leah Palnik

You may have heard that FedEx announced its General Rate Increases (GRI) for 2018. In the past few years, UPS has been the first of the two major small package carriers to make an announcement for the coming year, but this time FedEx is taking the lead.

Here are the announced average increases that will take effect January 1, 2018:

• 4.9% for FedEx Express domestic and international services
• 3.5% for FedEx One Rate
• 4.9% for FedEx Ground and FedEx Home Delivery
• 4.9% for FedEx Freight

As it’s important to remember every year, these averages don’t paint a complete picture. The zones you typically ship to and the services you typically use could dramatically affect the actual increase you’ll see on your invoices. Some are much higher than the average, while others are much lower or remain the same. UPS is likely to make its announcement for 2018 rates soon and if history is any indication, the averages will be similar to its competitor. 

FedEx and UPS traditionally have similar average rate increases, but in the last few years their base rates have diverged a bit. Ground base rates used to be nearly identical, but in 2017 the two carriers took different increases in different zones, making it harder to compare apples-to-apples. On top of that, they also implemented slightly different approaches to dimensional (DIM) weight pricing, by using different DIM factors. As a result, looking at what would be most cost effective for you and how your rates will change has become more complicated.

Another trend that we’ve seen from UPS and FedEx is the announcements of additional changes throughout the year, separate from the GRIs. The announced averages have gone down in recent years, but these mid-year adjustments can sometimes have a larger impact.

One example of this is the new peak season surcharges that UPS is implementing for the holidays this year. UPS recently announced that it will apply a 27-cent charge on all ground residential packages during its busiest weeks in November and December. FedEx is taking a notably different approach and forgoing any additional holiday residential surcharges except for  packages that are big or bulky enough to require special handling.

Both UPS and FedEx attribute charges like this to the rise of e-commerce, which has brought a sharp increase in residential shipments, particularly oversized items like furniture and exercise equipment. These kind of parcel shipments put a strain on their networks and their sorting machinery, and they've been finding ways to make up for these costs.

FedEx is also making a couple of additional moves to address the changing nature of parcel shipments in 2018. It will now apply a surcharge for shipments with third-party billing – mimicking a move that UPS made at the beginning of 2016. FedEx will also begin applying a DIM factor of 139 to all SmartPost parcels, effective January 22. UPS already applies DIM weight pricing to SurePost packages, but uses a higher DIM factor for packages 1,728 cubic inches and under.

Every year, when the new rates for UPS and FedEx are out, PartnerShip does a complete analysis so you can determine what effect it will have on your business. Subscribe to the PartnerShip Connection blog to be alerted when it’s out so you can start planning for the new year and learn how to mitigate the rising costs of small package shipping. 

UPS Adds Residential Holiday Shipping Surcharges; FedEx Will Not Follow

08/30/2017 — PartnerShip

The holidays are approaching and that means an increase in small package shipping. If you use UPS for residential Ground shipping, you’ll also see new holiday residential shipping surcharges from the Atlanta-based company.

UPS announced that it will add a 27-cent charge on all Ground residential packages sent between November 19 and December 2. This includes two of the busiest online shopping days of the year, Black Friday, which is November 24 and Cyber Monday, which is November 27.

The charge hibernates for two weeks, then returns December 17 through December 23, during which time all Ground residential deliveries will see the additional 27-cent charge, plus an additional 81-cent charge for next-day air shipments or an additional 97 cents for two-day or three-day delivery.

According to financial news outlet Bloomberg, the surcharges will increase the cost of UPS residential deliveries by roughly 3 percent.

The stated reason for the company’s surcharge increases is that online shopping and e-commerce has grown significantly over the last twenty years and UPS sees a huge influx of packages during the holiday shopping season that puts stress on its systems, processes and machinery. On an average day, UPS processes around 19 million packages but during the holiday season, that number swells to 30 million packages.

In order to meet demand, UPS says it has to add planes, trucks, and thousands of employees; and the surcharges are necessary to offset the additional cost of the holiday package surge.

“UPS’s peak season pricing positions the company to be appropriately compensated for the high value we provide at a time when the company must double daily delivery volume for six to seven consecutive weeks to meet customer demands,” according to Glenn Zaccara, a spokesperson for UPS.

UPS is also adding a Large Package surcharge of $24 and a Over Maximum Limit surcharge of $249. Both of these UPS surcharges are effective November 19 through December 23, 2017.

In a notable departure from UPS, FedEx will not apply residential surcharges this holiday season, except for packages that are big or bulky enough to require special handling.

Between November 20 and December 24, 2017, FedEx Express and FedEx Ground in the U.S. and Canada will increase the additional handling surcharge by $3 per package and $25 per package for oversize packages. The largest surcharge of $415 per package is only applied to packages that exceed the FedEx maximum size limit and cannot move through its sorting equipment.

With the additional handling surcharge for oversized packages, both UPS and FedEx are trying to discourage large and heavy, odd-sized shipments, because they cannot pass through its automated systems and require additional handling. In fact, the volume of oversized packages handled by FedEx Ground has increased 240 percent during the past ten years and is now 10 percent of the ground operation’s volume. This is “largely driven by expansion of e-commerce into sports equipment, furniture, mattresses and other things that weren’t largely available on e-commerce 10 years ago,” according to Patrick Fitzgerald, senior vice president of marketing at FedEx.

It's important to evaluate how you these changes might affect your shipping costs. Through a PartnerShip-managed shipping program, you can receive significant discounts on select FedEx services - resulting in savings that can help to offset cost increases like these. If you're not sure if you qualify for one of our small package shipping programs, contact us and we'll find the solution that's right for you.

A Closer Look at DIM Weight Pricing

11/29/2016 — Leah Palnik

Dimensional (DIM) weight can be a tricky subject to master. All of the changes that small package carriers UPS and FedEx have made in recent years don’t help. In 2017, FedEx is lowering the DIM factor for domestic packages to 139 from 166. UPS is making the same change for domestic packages less than or equal to 1,728 cubic inches. So how will this change affect you?

First, it’s important to understand what dimensional weight is and how it’s calculated. Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume, in relation to its actual weight. Carriers use dimensional weight in order to account for the space packages take up on their trucks and planes. This allows for a more precise way to charge for their services.

The basic formula for calculating DIM weight is (length x width x height)/DIM factor. For most small packages, the DIM factor will now be 139. The one exception is UPS domestic packages 1,728 cubic inches and under. UPS originally didn’t announce any changes to its DIM weight pricing for 2017, but it followed suit after FedEx announced it would be using 139 as the DIM factor for both domestic and international packages. Let that serve as a reminder to stay informed, as UPS and FedEx are continually making updates to their rates, surcharges, and DIM weight rules.

Once you calculate your DIM weight, compare it to your actual weight. The greater of the two will become the billable rate. When deciding if you need to make any adjustments to how you ship your packages in the upcoming year, start by doing an analysis of your common shipments. Look at those package measurements, calculate the cubic inches (length x width x height), and find the DIM weight to determine your billable weight. For an easy way to determine your billable weight, click here to use our DIM weight calculator.

UPS and FedEx base rates differ quite a bit more in 2017 than they have in the past. Because of this, you’ll want to make sure you’re not just using DIM weight pricing to determine which carrier to use. Download our free white paper, Understanding the 2017 Small Package Rate Increases, for a detailed analysis on the new rates.

Since density is the name of the game, make sure you review your shipment packaging to reduce the size of your package if you can. Don’t use oversized boxes that contain unused space and, where possible, consolidate orders. By being more efficient with your packaging, you’ll ensure you’re not paying to ship empty space.

One of the best ways to offset the rate increases and DIM weight pricing changes is to ensure you’re maximizing any discounts available to you. PartnerShip offers association members discounts on select FedEx services. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

Understanding the UPS and FedEx Rate Increases

11/11/2016 — Leah Palnik

Every year small package carriers FedEx and UPS evaluate their shipping rates and make adjustments that can have a substantial effect on you and your business. The UPS rate increases take effect on December 26, 2016, while the new FedEx rates take effect on January 2, 2017. As always, how much more expensive your particular small package shipments will be in the new year depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts: 

• FedEx Express and International rates are increasing an average of 3.9%
• UPS Air and International rates are increasing an average of 4.9%
• FedEx Ground and Home Delivery^® rates are increasing an average of 4.9%
• UPS Ground rates are increasing an average of 4.9%
• The dimensional divisor for FedEx domestic packages is changing from 166 to 139
• UPDATE: the dimensional divisor for UPS domestic packages greater than 1,728 cubic inches is changing from 166 to 139
• FedEx SmartPost^®, FedEx One Rate^®, and UPS SurePost^® rates will be changing

The important takeaway when thinking about your shipping expenses in 2017 is that the announced average increases paint an inaccurate picture of the true impact these new rates could have on your business. The shipping experts at PartnerShip^® have dug into the details and analyzed the new rate tables to assess the true impact to shippers and help you make sense of these changes. Learn more about how the 2017 rate increases will affect your shipping costs by downloading our free white paper!

Download Now! Understanding the 2017 Small Package Rate Increases

Get winning! Enter the FedEx Advantage® $25,000 Get Ready Sweepstakes

10/13/2016 — Leah Palnik

Get ready for a chance to win! FedEx is giving PartnerShip customers a chance to win up to $10,000, or over 100 other prizes, in the $25,000 Get Ready Sweepstakes. By enrolling in a PartnerShip-managed shipping program, association members will be automatically entered in the sweepstakes. If you are already enrolled in one of our programs, you simply have to join My FedEx Rewards. Then you’ll have a chance to earn up to 51 additional entries.*

Imagine how you could invest in the success of your business with these prizes:

• $10,000 Grand Prize (1) 
• $1,000 First Prizes (10) 
• $50 Second Prizes (100)

Get started. Keep saving.
PartnerShip customers enjoy significant savings on select FedEx® services. The program is free to join and there are no minimum shipping requirements. What’s more, you may be eligible for other special offers and promotions.

PartnerShip works with over 120 major trade associations, across many industries, to provide their members with time- and money-saving tools to help them be successful in all facets of shipping and logistics. If you belong to an association we work with, take advantage of our free shipping benefits today and get in on the $25,000 Get Ready Sweepstakes. If you're not sure if you qualify for one of our association shipping programs contact us and we'll find the solution that's right for you.

*Limit 52 total entries. NO PURCHASE NECESSARY. Void where prohibited. The $25,000 Get Ready Sweepstakes is sponsored by FedEx Corporate Services, Inc. Open to legal residents of the 50 United States and Washington, D.C., age 18 or older who are members of an eligible FedEx Advantage affiliate as of 9/11/16. Begins 9/12/16; ends 11/4/16. For rules, go to smallbusiness.fedex.com/get-ready-rules.

FedEx and UPS Announce 2017 Rate Increases

09/26/2016 — Leah Palnik

FedEx recently announced changes to its shipping rates for 2017. In a surprising move, these new rates do not match the increases that UPS announced earlier this month. FedEx and UPS typically announce similar rate increases annually, making this year rather unique.

The new rates for FedEx will take effect on January 2, 2017. FedEx Ground services will increase an average of 4.9%, matching the announced average increase for UPS Ground that will take effect on December 26, 2016. However, while UPS Air services will be increasing an average of 4.9%, FedEx Express rates will only be increasing an average of 3.9%. This is the first of many differences between the announced changes from the two major carriers.

FedEx will also be lowering the dimensional (DIM) divisor to 139 for domestic shipments, matching the divisor currently used for international shipments. Many shipments that were not previously charged at the DIM weight will now be affected, which will have a significant impact on overall shipping costs. In 2011, the dimensional divisor decreased from 194 to 166, and in 2015 both FedEx and UPS began applying DIM weight pricing to all ground shipments. At this time, UPS hasn’t announced any changes to its DIM weight pricing.

In addition, FedEx announced a change to its fuel surcharges. Effective February 6, 2017, the fuel surcharge percentage will be subject to weekly adjustment, rather than monthly. There’s currently a two month lag time between the US government fuel indexes and the fuel surcharges. This change will better align them by reducing the lag time to two weeks.

As a shipper, it’s important to understand how these changes will affect you and your business. As we’ve done in past years, Partnership will conduct a full analysis to help you make sense of these changes. Be on the lookout for our white paper on the topic before the New Year!

In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these rate increases. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

Changes Coming to the FedEx Additional Handling Surcharge

04/28/2016 — Leah Palnik

FedEx currently applies an additional handling surcharge to packages with a length greater than 60 inches, but after June 1 the threshold will be lowered to 48 inches. This announcement came during the FedEx third-quarter earnings call and is in response to recent e-commerce trends. More consumers are shopping online, which has led to an increase in home deliveries and an increase in non-traditional items being shipped, such as big screen TVs, mattresses, and swing sets.

The additional handling surcharge currently costs $10.50 per package, so it’s important to take a look at the size of packages you send and receive. If a lot of your packages are greater than 48 inches in length, you will see a significant jump in your costs.

It’s also important to note some of the other criteria from the FedEx service guide that would cause a package to be charged the additional handling surcharge. This surcharge also applies to any Express or Ground package that: 

• measures greater than 30 inches along its second-longest side
• has an actual weight of greater than 70 lbs
• is not fully encased in an outer shipping container
• is encased in an outer shipping container made of metal or wood
• is cylindrical, including (without limitation) cans, buckets, barrels, drums or pails that are not fully encased in an outer shipping container made of corrugated cardboard

The rise of e-commerce has caused a considerable amount of change in small package shipping in the past few years. Carriers are constantly adjusting service costs to address market trends. In 2015, FedEx and UPS began applying DIM weight pricing to all ground shipments as opposed to just those three cubic feet or larger. Prior to the 2016 rate increases and just in time for the holiday volume, the charge for oversized packages nearly doubled to $110. In addition, UPS instituted a 2.5% surcharge for third party billing service in response to the growing popularity of drop shipping. As the e-commerce sector continues to thrive we can expect to see more changes like this in the future.

Update: On May 6, 2016 UPS announced it will follow suit with FedEx and reduce its maximum length for the Additional Handling charge. Effective June 6, 2016, UPS Ground packages exceeding a length of 48 inches will be assessed the fee.  

It's important to start evaluating how you these changes will affect your shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can help to offset cost increases like these. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

Understanding the UPS and FedEx Small Package Rate Increases

11/13/2015 — Leah Palnik

Every year small package carriers FedEx and UPS evaluate their shipping rates and make adjustments that can have a substantial effect on you and your business. The UPS rate increases will be effective December 28, 2015, while the new FedEx rates take effect on January 4, 2016. As always, how much more expensive your particular small package shipments will be in the new year largely depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts: 

• FedEx Express package rates are increasing an average of 4.9% for U.S., U.S export, and U.S. import services. 
• UPS Air and International package rates are increasing an average of 5.2%. 
• FedEx Ground and FedEx Home Delivery rates are increasing an average of 4.9%. 
• UPS Ground rates are increasing an average of 4.9%.

The important takeaway when thinking about your shipping expenses in 2016 is that the announced average increases paint an inaccurate picture of the true impact these new rate increases could have on your business. If you find yourself confused by rate bases, average increases, surcharges, and DIM weight pricing — rest assured that PartnerShip is here to help. Our small package shipping experts have dug into the details and analyzed the new rate tables to assess the true impact to shippers and help you make sense of these increases. Learn more about how the 2016 rate increases will affect your shipping costs by downloading the free white paper at PartnerShip.com/RateIncrease.

Download: Understanding the 2016 Small Package Rate Increases

Small Package Changes Coming Next Week

10/28/2015 — Leah Palnik

As you may have heard, small package carriers FedEx and UPS recently announced their general rate increases for 2016. As you prepare for these adjustments in the next couple of months, it’s important to take notice of a couple changes coming before the New Year.

Beginning November 2, 2015, shippers will see a significant increase in the charge assessed for oversized packages. The FedEx Unauthorized Packages surcharge and the UPS Over Maximum Limits surcharge are jumping from $57.50 to $110. These changes come just in time for the holiday rush, where the carriers see a significant increase in shipment volume. This charge applies to: 

• Any package measuring more than 108 inches in length
• Any package measuring more than 165 inches in length and girth combined
• Any package weighing more than 150 lbs.

Another change shippers will see from FedEx and UPS before the holiday rush pertains to fuel surcharges. Effective November 2, 2015, FedEx and UPS will update their fuel surcharge tables for Ground, Express/Air, and International. This is the second time FedEx will be increasing fuel surcharge tables this year. However, UPS fuel surcharges will be higher than their competitor. Next month the fuel surcharge rate for Ground services will increase from 4.75% to 5.25%, while the fuel surcharge for Air services will increase from 3% to 4.5%. In comparison, the FedEx fuel surcharge for Ground services will jump from 3.5% to 4.25%; and from 1% to 2.75% for Express services. To view the updated tables, click the links below:

• FedEx Fuel Surcharge Table
• UPS Fuel Surcharge Table

Every year, PartnerShip conducts a full analysis of the FedEx and UPS small package rate increases to help shippers assess the true impact. Be on the lookout for this informative white paper, coming soon! In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these rate increases. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

How to Manage Customer Returns with FedEx

10/15/2015 — Leah Palnik

If you’re in the e-commerce game, you know that a certain amount of returns is inevitable – especially around the holidays. FedEx^® return shipping services make it easy to manage customer returns. Here are a few of the return services you can take advantage of:

FedEx Print Return Label
With this option you can create and print a return label with FedEx Ship Manager^®, and then include it either in the original shipment to your customer or in a separate correspondence. No charges are assessed until the label is used. 

FedEx Email Return Label
Instead of printing the return label and sending it to your customer, you can simply have it emailed. The customer receives an email with a link and barcode which allows them to access the label and print it themselves if needed. 

FedEx Express® Billable Stamps
FedEx Express Billable Stamps take the place of airbills and the recipient's information is conveniently preprinted on the stamp. No charges are assessed until the stamp is used. 

FedEx Express^® Prepaid Stamps
These prepaid labels allow you to allocate shipping costs and specify a FedEx delivery service upfront, letting you control and plan for return costs.

FedEx Ground^® Package Returns Program
FedEx Ground Package Returns Program simplifies returns for your customers. You provide your customer with a preprinted return label and they can schedule the pickup, without being charged a pickup fee. 

FedEx Express Tag^®
For express shipments, FedEx will create and deliver return shipping labels to your customer and collect the item for return. You can then schedule the express return pickup. 

FedEx Ground^® Call Tag
With this ground return pickup option, FedEx creates and delivers the return label to your customer, and then collects the item for the ground return pickup.

Through an association shipping program managed by PartnerShip, you can receive exclusive discounts on select FedEx services. If you belong to an association we work with, take advantage of our free shipping benefits today. If you’re not sure if you qualify for one of our FedEx small package shipping programs, contact us and we’ll find the solution that’s right for you.

FedEx and UPS rates are increasing in 2020! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

FedEx Announces 2016 Rate Increases

09/17/2015 — Leah Palnik

This week, FedEx announced its general rate increases (GRI) for 2016. Effective January 4, 2016, FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. FedEx SmartPost^® rates will also increase and FedEx One Rate^® pricing will change.

Shipping fees and surcharges will also be changing. Here are a few examples of surcharge changes that will apply in 2016:

A couple of changes are coming ahead of the New Year and will be in effect starting on November 2, 2015. Fuel surcharge tables will be updated for FedEx Express and FedEx Ground, with full details becoming available on fedex.com by September 23, 2015. Also, the FedEx Ground Charge for Unauthorized Packages will increase from $57.50 per package to $110 per package. This charge applies to: 

• Any package measuring more than 108 inches in length
• Any package measuring more than 165 inches in length and girth combined
• Any package weighing more than 150 lbs.

If you ship small packages these rate increases will likely affect your business. When FedEx and UPS provide the full details of their GRIs, you can count on PartnerShip to provide you with a breakdown of what these new rates will mean to you and your business in 2016. 

In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these rate increases. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you. 

How to Ship Internationally with FedEx

07/23/2015 — Leah Palnik

When you think about shipping internationally there are probably a lot of things running through your head. How do I know what documents I need? What regulations do I need to follow? Am I doing this right? We get it – it can be daunting. Luckily, you have us to put your mind at ease. When you use our alliance service partner, FedEx, and follow these 5 simple steps for your international small package shipment, you won’t have to worry.

1. Research your destination country
Check out the country snapshots on fedex.com to find detailed shipping requirements and service availability for the country you’re shipping to. These snapshots provide a great summary that includes general clearance information, standards, and restrictions that could affect what you’re trying to ship.

2. Pick your service
There are several international shipping services to choose from with FedEx. Whether your shipment is time sensitive or you have more time, there is a service that’s right for you. The best way to determine which one you should use is to find your rates and transit times. When you put in your shipment information this tool provides you with a list of service options with their costs and delivery times.

3. Find and prepare your documents
Using the FedEx Global Trade Manager you can find and print copies of the documents that will have to accompany your international shipment. All you have to do is fill out some information about your shipment and about the product you are shipping. Once you enter that in, the results will show you exactly what documents you need to complete.

4. Prepare your shipment
Packing and preparing your shipment correctly is imperative when you’re shipping internationally. FedEx offers a number of packaging options as well as a how-to guide so you don’t have to worry about wasted costs or issues.

5. Ship and track
Once you’re ready to ship, you can schedule a pickup or drop it off at a nearby FedEx location. After that you can easily track the status of your shipment until it reaches its destination.

Through an association shipping program managed by PartnerShip, you can receive discounts on your international shipments with select FedEx^® services. PartnerShip works with over 120 major trade associations, across many industries, to provide their members with the money-saving tools to help them be successful. If you belong to an association we work with, take advantage of our free shipping benefits today and save on your international shipping. If you're not sure if you qualify for one of our FedEx small package shipping programs contact us and we'll find the solution that's right for you.

How to Schedule a Pickup with FedEx

06/29/2015 — Leah Palnik

You have a small FedEx® package that's ready to be shipped, but you aren't able to drop it off at a FedEx location. Just schedule a one-time pickup. It's easy and convenient. Here is what you need to do to get started:

1. Go to the Pickups page on fedex.com. You can find this page by clicking on Schedule and Manage Pickups in the quick access section of the homepage or under Ship in the top navigation bar.

2. From here you’ll want to log in to fedex.com to access your account. If you don’t currently have a fedex.com account, you can easily register here.

3. Confirm or update your account number in the Account Details section. If you have multiple account numbers you’ll be able to select the one you want to use from the drop down menu.

4. Your account address will be pre-populated in the Pickup Address section. Look it over to make sure it is correct, and fill in any missing information. You can also use a different address by clicking the Change pickup address link at the top of the section.

5. Specify your pickup details like number of packages, ready time, or special instructions in the Package Information section.

6. If you’d like to set up notifications you can also do that by entering your email address in the optional Email Notifications section.

7. Once you’re ready, click Schedule pickup to submit your information.

You're all set! You can also manage your scheduled pickups under the My Pickups tab on the same page. Here you can view, edit, or cancel your pickups in one easy place.

Through an association shipping program managed by PartnerShip, you can receive exclusive discounts on select FedEx services. If you belong to an association we work with, take advantage of our free shipping benefits today. If you’re not sure if you qualify for one of our FedEx small package shipping programs, contact us and we’ll find the solution that’s right for you.

FedEx and UPS rates are increasing in 2020! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

How to Get the Most out of FedEx Express® Services

05/14/2015 — Leah Palnik

If you have a small package shipment that is time-sensitive – domestic or international, FedEx Express is your best bet. At PartnerShip, our goal is to help you get the most out of these services. Here are a few things you can do to take full advantage of FedEx Express services.

Establish discounts
Through a PartnerShip managed shipping program, you can receive discounts with FedEx, including select FedEx Express services. If you belong to an association we work with, you simply need to enroll. To find out if you qualify, contact us and we’ll find the solution that’s right for you.

Order free shipping supplies
You can order supplies for your FedEx Express shipments for free through fedex.com. Supplies include envelopes, boxes, tubes, shipping label pouches, and more. Getting free shipping supplies means one less cost for you to worry about.

Take advantage of FedEx One Rate^® options
Select FedEx Express services are available with FedEx One Rate. These flat rate options can be very cost-effective for envelopes up to 10 lbs and boxes or packs up to 50 lbs. The best way to see if using FedEx One Rate makes sense for your shipment is to start by comparing the pricing. Click here to enter in your shipment information and generate your rate.

Utilize international tools and resources
If you ever have international shipping needs, FedEx Express services can help you get it there fast, with time-definite delivery in 1 to 5 days, to more than 220 countries and territories. With access to country snapshots, documentation preparation help, and more, the FedEx^® Global Trade Manager is a great place to start if you have an international small package shipment.

PartnerShip discounted small package shipping services are completely free to eligible businesses participating in one of our association shipping programs. If you are currently a member of a professional association or trade group, ask them if they have a discounted small package shipping program through PartnerShip. You can also give us a call at 800-599-2902, or send an email to sales@PartnerShip.com, and we'll find out for you.

DIM Weight Resources

04/30/2015 — Leah Palnik

Have you noticed a difference on your shipping invoices since the beginning of the year? Small package carriers FedEx and UPS are now applying dimensional (DIM) weight pricing to all packages. This is a significant change from last year, when only packages measuring at least three cubic feet were subject to dimensional weight pricing. If you’re still confused about how to calculate DIM weight or what you can do to keep your costs down, PartnerShip can help. Check out these resources below.

DIM Weight Calculator
This tool makes it easy for you to determine if you’ll be charged at the dimensional weight or your actual package weight. Simply enter in your package dimensions and weight and we’ll do the calculation for you. You’ll be able to quickly assess if your package is affected so you can make any possible adjustments.

DIM Weight Special Report
This report provides you with a detailed overview of the DIM weight pricing changes. You’ll learn what DIM weight is, how it’s calculated, and what you can do to offset the added cost.

Rate Increases White Paper
The changes to DIM weight pricing are only one part of the puzzle when it comes to evaluating the change in your small package shipping costs this year. This white paper takes an in-depth look at the general rate increase (GRI) for small package carriers FedEx and UPS.

Shipping Analysis
If you want someone to help evaluate your shipping and determine how to save the most money, you can fill out this short form to request a free analysis. One of our shipping experts will contact you and find a solution that works best for your business.

Do Business. Get Rewarded.

04/20/2015 — Leah Palnik

PartnerShip customers are now able to obtain a free membership in the new My FedEx Rewards program. In addition to the small-package discounts they enjoy through a PartnerShip-managed shipping program, My FedEx Rewards lets them earn gift cards and brand-name merchandise when they ship.

Join for free
Enjoy all the benefits of being a My FedEx Rewards member.

Earn
Take advantage of exclusive offers and earn rewards for shipping with FedEx.

Get rewarded
Choose from gift card favorites for music, restaurants and stores. Or, redeem for a variety of brand-name merchandise.

Click here to join the My FedEx Rewards program, and you’ll receive exclusive offers that typically run for eight weeks. After you activate an offer, you can easily track your progress; and once you reach an offer goal, you get to pick out your reward.

PartnerShip works with over 120 major trade associations, across many industries, to provide their members with time- and money-saving tools to help them be successful in all facets of shipping and logistics. If you belong to an association we work with, take advantage of our free shipping benefits today and get in on My FedEx Rewards. If you're not sure if you qualify for one of our association shipping programs contact us and we'll find the solution that's right for you.

Congratulations to our FedEx 2015 Pro Bowl Package Sweepstakes Winners!

03/31/2015 — Leah Palnik

PartnerShip customers recently had the chance to participate in the FedEx 2015 Pro Bowl Package sweepstakes, sponsored by FedEx. By enrolling and shipping through a PartnerShip-managed shipping program, association members had the opportunity to win a number of great prizes. PartnerShip would like to thank the customers that participated in this promotion and congratulate our winners.

Congratulations to the following PartnerShip customers who won one of the fabulous prizes:

• Art from National Shrinkwrap 
• Kevin from Prestige Mold Inc
• Nelson from Helmuth Repair Inc
• Troy from Gardners Books Service Inc
• Richard from House of Shoes

Throughout the sweepstakes, PartnerShip customers who participated also received significant discounts on select FedEx^® services. Even though the sweepstakes is over, our customers are still saving money, and association members who qualify for a PartnerShip-managed shipping program can also take advantage of these savings. If you’re not sure if you qualify for one of our small package shipping programs, contact us and we’ll find the solution that’s right for you.

Take Advantage of Simple, Flat Rate Shipping with FedEx One Rate®

02/11/2015 — Leah Palnik

Association members participating in a shipping program managed by PartnerShip® can now take advantage of FedEx One Rate. This pricing option has all of the convenience and reliability of FedEx Express® shipping at a predictable, flat rate. With FedEx One Rate, there’s no weighing or measuring of shipments under 50 lbs.¹, so you can add to the box without adding to the price. Your flat rate includes free packaging options², time-definite 1-, 2- or 3-day delivery, and even some common surcharges.

Shipping made simple
When your shipping process is streamlined with the predictable pricing of FedEx One Rate, you can spend more time on the things that matter, like growing your business. With FedEx One Rate, you can take advantage of the following:

• Manage, plan and communicate shipping costs efficiently with predictable rates that include residential, delivery area and fuel surcharges.³
• Save time by not having to weigh packages or purchase packaging materials.
• Experience FedEx reliability with a money-back guarantee⁴, free packaging in more shapes and sizes and up to $100 in declared value for free.

Getting started
Find your flat rate at fedex.com/tryonerate. You can order your free packaging at fedex.com or by visiting a staffed FedEx location. There you’ll be able to choose from 12 package sizes including unique extra large and small boxes.

Through an association shipping program managed by PartnerShip, you can receive exclusive discounts on select FedEx® services. If you belong to an association we work with, take advantage of our free shipping benefits today. If you’re not sure if you qualify for one of our FedEx small package shipping programs, contact us and we’ll find the solution that’s right for you.

¹Up to 50 lbs. in FedEx paks, boxes and tubes. 10 lbs. in FedEx® Envelopes.

²Quantity restrictions may apply based on your FedEx Express shipping history.

³Value-added services are available for a fee when shipping using FedEx One Rate pricing, such as on-call pickup, Saturday delivery, Saturday pickup, signature service options, and additional declared value over $100. Additional surcharges may include address/account corrections. See fedex.com/fedexonerate for details.

⁴For details on the FedEx Money-Back Guarantee, see Our Services at fedex.com.

Terms, conditions and weight limits apply. Proper packing required.

What’s the Story Behind Your Business? FedEx Wants to Know

01/08/2015 — Leah Palnik

Every small business has a story. What’s yours? It could be worth $25,000.The third annual FedEx Small Business Grant Contest is accepting entries from Jan. 12 to Feb. 12, 2015, and the winners will split $75,000 in grants. Share your compelling business story for a chance to win one of 10 grants: 

• A grand prize of $25,000 
• One grant of $10,000
• Eight $5,000 grants

FedEx reviews every entry and chooses the winners based on several elements, including the number of votes received, compelling business story, social presence to develop your brand voice and how the grant money would be used in your business. That could mean any number of things: Do you have an innovative product unlike any other? A unique business structure, such as a family-run operation or a supply chain that empowers impoverished communities? If so, you could find yourself in the winner’s circle.

Here’s what you do: 

• Start preparing now! Write a brief profile of your business, describing what you do, sell or offer; what inspired you to get into this business; what makes your business stand out; how it impacts you, your community or the environment; and how you would use the grant money.
• If you like, you may put together a one-minute elevator pitch video about your business.
• Enter online and upload your story, along with four photos, including one of your company logo, and the (optional) video, at fedex.com/grantcontest.
• After your entry is approved and the voting period begins, go to your profile page in the gallery and vote for your business by clicking the Facebook, Twitter and Instagram links. You can vote once per 24-hour period on each social platform.
• Encourage your friends, customers and associates to vote for you, too. The number of votes you receive is one factor FedEx will consider when selecting finalists and winners.

Remember these important dates
Mark these dates on your calendar so you don’t miss any deadlines or important news:

• Jan. 12–Feb. 12, 2015: Contest entry period
• Feb. 13–March 17: Voting period
• March 31: Top 100 finalists announced
• April 21: Winners announced

Learn more about the contest online, and return when you're ready to enter.

Get ideas and tips
Watch a short video featuring four contest winners and how they used the grant to grow their businesses. 

Learn more about other past winners at the FedEx® Small Business Center. You can watch videos about the businesses, read about their biggest successes and lessons learned, and more. 

And for help crafting a great entry for your own business, you can download a sample entry.

Vote for your favorite candidates
Even if you don’t enter the contest, you can still have fun with it. Read about and vote for businesses in the running, and see who wins, by going to fedex.com/grantcontest.

FedEx helps small businesses every day
You don’t have to enter a contest to enjoy savings. PartnerShip offers association members discounts on select FedEx® services. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

How to Pack Your FedEx® Small Package Shipments

10/20/2014 — Leah Palnik

We recently posted about the new package laboratory that FedEx opened to test and design packages for a wide variety of products that their customers ship. This new facility will prove to be very beneficial for customers with specific packaging needs. However, even the simplest packages need to pass one basic test – getting your shipment to its destination safely and securely. Here are some tips for packing your FedEx small package shipment like a pro:

Boxing
When you select a box for your shipment, make sure to match it appropriately to the size and weight of the items you are shipping. Avoid using a box that would leave an abundant amount of empty space as this could cause a cost increase if your shipment is subject to DIM weight pricing. It will also make it more difficult to ensure your product is secure in the box, helping to prevent any damages. For heavier items, use double-walled or thick corrugated boxes. If you are reusing a box, be sure to remove all old labels, and make sure it's high-quality, with no holes, tears, or dents.

Cushioning
Choose cushioning with enough density to keep items from shifting. It’s also good practice to wrap and tape all sharp or protruding edges on the items you’re shipping. You will also want to bind printed material together or secure any loose items together. These precautions help to prevent any damages to your product or to the packaging itself.

Labeling
Place your label on the package's largest surface and secure it firmly with your hand. When using a pouch, remove the peel-off strip and firmly seal the flap. For luggage, travel cases, or other containers with handles, label your item with a tie-on tag (available at FedEx Office locations). For wood, plastic, or metal containers be sure to use labels with extra adhesive. While not required, it is also a good idea to put a copy of your label inside your package. This way FedEx can still make the delivery in the event your outer label comes off.

Sealing
With your box properly packed, apply at least three strips of packing tape (no duct or masking tape) that is at least 2" wide evenly across all flaps and seams, top and bottom, using the H taping method. You will also want to avoid taping over your FedEx label.

Through an association shipping program managed by PartnerShip, you can receive exclusive discounts on select FedEx services. If you belong to an association we work with, take advantage of our free shipping benefits today. If you’re not sure if you qualify for one of our FedEx small package shipping programs, contact us and we’ll find the solution that’s right for you.

Introducing the New FedEx Package Lab

10/20/2014 — Leah Palnik

Earlier this year, FedEx opened a new package laboratory to better serve their customers. With more than 30,000 square feet of space, this facility allows FedEx to test and design packages for a wide variety of products that their customers may ship – perishables, glass, electronics, and any other items that require special attention.

This new industry-leading facility is the result of three years of design and development work. It uses the latest technology and testing protocols, including equipment that drops, squeezes and shakes various forms of packaging to test their strength and effectiveness.

The facility’s advanced environmental controls maintain the temperature and humidity in the laboratory’s preconditioning room and materials testing room. In fact, they can simulate any place FedEx ships, from the desert to the rainforest to the Arctic.

The lab’s unique features include:

• Altitude chamber  (Site level to 100,000 feet)
• Temperature chamber (-90°F to +350°F)
• Humidity chamber (within 2% tolerance)
• Two drop testers
• Three vibration tables
• Compression table
• Automated sample table
• 5-ton crane for testing skidded freight
• Forklift course for testing skidded freight
• Material testing laboratory
• Wood shop
• Other specialty design and testing equipment

You can take advantage of this new facility by submitting a sample of the packages you currently use for a variety of performance tests; or you can even request package-design assistance by downloading and completing the FedEx Packaging Design Application.

PartnerShip customers come from a wide variety of industries and this new package lab has the versatility to meet the needs of customers of all shape and sizes. Through an association shipping program managed by PartnerShip, you can benefit from these services and receive exclusive discounts on select FedEx^® services.  If you belong to an association we work with, take advantage of our free shipping benefits today. If you’re not sure if you qualify for one of our FedEx small package shipping programs contact us and we’ll find the solution that’s right for you.

Cold Package Shipping with FedEx

10/20/2014 — Matt Nagel

By working with the most reputable carriers in the country, we are able to offer our customers many different services to fit their shipping needs. One of these services is Cold Shipping Package provided by FedEx. This temperature-controlled packaging system for shipping sensitive products across the country or around the world serves as a needed solution to many of our customers shipping food, medicine, or anything else that needs to stay cold during transit. The packaging technology uses a special cooling device to evaporate water over time, maintaining a constant 2–8°C environment inside the package for up to 96 hours.

The Cold Shipping Package from FedEx features:

• Smaller, lighter packaging that weighs less than half of some gel-pack systems, which translates into lower shipping costs and labor savings.
• No complicated gel packing instructions since there’s no fridge or frozen preparation or preconditioning required.
• Peace of mind knowing that your temperature-controlled shipments are in the custodial control of the secure FedEx® network.
• Reusable boxes (replacement cooling devices available), making shipping to and from events and tradeshows easy and cost-effective.

What cold shipping package sizes are available?

If you would like to learn more about cold shipping options available through FedEx, go to fedex.com/coldshipping. There you can order supplies, get more information about cold shipping solutions, and read real world success stories. Also, be sure to check out the short video below about Cold Shipping provided by FedEx.

To learn more about packaging options and best practices, download our free white paper: The Ultimate Guide to Packaging Your Shipments

Your Guide to Using FedEx Express International Services

05/28/2014 — Leah Palnik

Sorting out all of the necessary steps for shipping internationally can be intimidating. Our small package alliance partner, FedEx, has the services and tools to simplify the international shipping process for small businesses.

FedEx Express International Services:
FedEx offers a variety of international service options to fit your delivery and budgetary needs:

• FedEx International Priority^® 
  Provides customs-cleared delivery typically in 1 to 3 business days to more than 220 countries and territories. You can import from more than 220 countries and territories too. 
• FedEx International Economy^®
  Provides cost-effective, customs-cleared delivery typically in 2 to 5 business days to more than 215 countries and territories. You get delivery in just 2 or 3 business days to Canada, Mexico and Puerto Rico. You can import from more than 100 countries and territories too. 
• FedEx^® International Next Flight
  The fastest-possible delivery to and from more than 220 countries and territories. Reach major cities in just hours depending on flight availability. It's available 24 hours a day, 365 days a year. 
• FedEx International First^®
  Reach many destinations in Belgium, England, France, Germany, Italy, the Netherlands, Spain and Switzerland as early as 9 a.m. in 2 business days. You can also take advantage of inbound delivery to select U.S. ZIP codes from more than 60 countries and Caribbean islands in just 1 or 2 business days by 8 or 8:30 a.m. 

FedEx Express International Shipping Tools:
Through the FedEx Global Trade Manager, you have several tools right at your fingertips to get everything ready for your international shipment:

• Find International Documents: Get help finding the necessary documents for your international shipment.  
• Estimate Duties and Taxes: Estimate the duties and taxes that will be levied against your international shipment. 
• Country Profiles: Get a snapshot of country information including demographics, business information and statistics. 
• Shipping Advisories: Get important regulatory information specific to your shipment. 
• Denied Party Screening: Identify individuals, companies, and other parties that have been denied international business transactions.
• Harmonized Code Search: Find the World Customs Organization (WCO) tariff classification for your product.

Through an association shipping program managed by PartnerShip, you can receive discounts on your international shipments with select FedEx services. PartnerShip works with over 120 major trade associations, across many industries, to provide their members with the money-saving tools to help them be successful. If you belong to an association we work with, take advantage of our free shipping benefits today and save on your international shipping. If you're not sure if you qualify for one of our FedEx small package shipping programs contact us and we'll find the solution that's right for you.

Related articles:
FedEx and UPS Peak Season Surcharges: The Important Differences
Your Guide to the 2020 FedEx and UPS Rate Increases
How to Manage Customer Returns with FedEx
How to Schedule a Pickup with FedEx
Take Advantage of Simple, Flat Rate Shipping with FedEx One Rate®

Understanding the Changes to FedEx Ground Dimensional Weight Pricing

05/12/2014 — Leah Palnik

FedEx recently announced that dimensional weight pricing will apply to all FedEx Ground shipments, effective January 1, 2015. This is a significant change from the rating structure in place today. Currently only FedEx Ground packages measuring at least three cubic feet (5184 cubic inches) are subject to dimensional weight pricing. 

UPS is likely to make the same changes, as FedEx and UPS have a history of matching one another's pricing strategies. Both of their general rate increases (GRI) have matched over the years, including similar accessorial fees and special handling charges.

Even though this change is still several months away, it's important to determine what this will mean for you and your business for future planning. So what can you do?

Educate yourself
Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume, in relation to its actual weight. Carriers use dimensional weight in order to account for the space packages take up on their trucks and planes. This allows for a more precise way to charge for their services.

According to the 2014 FedEx Service Guide, FedEx Express calculates dimensional weight for shipments within the U.S. by multiplying the package length by width by height (in inches) and dividing the total by a DIM Factor of 166 (the DIM Factor represents the volume of a package allowed per unit of weight). Dimensions that measure one-half inch or greater are rounded up to the next whole number, dimensions less than one-half inch are rounded down, and the final number is rounded up to the next whole pound. If the dimensional weight exceeds the actual weight, the former becomes the billable weight. It is likely that the new FedEx Ground dimensional weight pricing will follow the same guidelines.

Determine the impact
Start by looking at the FedEx Ground packages you typically ship and their box sizes. For example, if you tend to ship 24x12x12 boxes, the dimensional weight is 21 lbs. Here is how that is calculated:

length x width x height = volume
24 in x 12 in x 12 in = 3,456 cubic inches

volume/dimensional divider = dimensional weight
3,456/166 = 21 lbs.

You then compare the dimensional weight to the actual weight, and the higher of the two becomes the billable weight. In this example, if your actual package weight is 15 lbs., you will instead be billed at the dimensional weight (21 lbs.).

The change in dimensional weight pricing for small package ground shipments is only part of the impact you'll see on your budget for 2015, but it will be an important one. Keep an eye out around the New Year for the PartnerShip Small Package Rate Increase white paper that will come out after all of the general rate increases are announced by the carriers.

Find ways to offset the rate increase
Be mindful when you select the packaging for your small package ground shipments. Make sure you're not using unnecessarily large boxes for lighter shipments.  If you don't currently have one, investing in a scale can be helpful when determining how to ship out your small packages and selecting box size, so you know exactly what you're working with and how much you can expect to pay.   

Securing discounts for your small package shipments is one of the best ways to offset this rate increase. PartnerShip offers association members discounts on select FedEx services. If you're not sure if you qualify for one of our small package shipping programs Contact Us and we'll find the solution that's right for you. Also, if you click the button below, we can provide you with a free, no-obligation shipping analysis to determine how much we can help you save on your small package shipping.

Congratulations to our FedEx Sweepstakes Winners!

01/27/2014 — Leah Palnik

At the end of 2013, PartnerShip customers were encouraged to participate in the $25,000 FedEx Advantage Sweepstakes, sponsored by FedEx. By enrolling and shipping through a PartnerShip-managed shipping program, association members were eligible to receive over 100 prizes totaling more than $25,000. PartnerShip would like to thank the customers that participated in this promotion and congratulate our winners.

Congratulations to the $2,500 first prize winner - NTEA member, Judy from Meridian SV!

Congratulations to the following PartnerShip customers who each won a $100 American Express^® gift card:

• ABA member, Clive from Changing Hands
• NSRA member, Lou from New Balance Charlotte
• NACS member, Coral from Randolph College
• NSRA member, Mark from Shoe Stop
• NSGA member, Rick from Sports World
• NACS member, Kathy from Zane State College
• ABA member, Rebecca from Greenlight Bookstore
• NSRA member, David from Stans Footwear
• ACS member, Chris from Bardwell Farm
• NACS member, Amanda from Arm Pocket
• NAEDA member, Judy from Riceland Intl
• NACS member, Michael from Grandview Ed
• NACS member, Jennifer from Iowa State University
• NSRA member, Loria from Chiapetta Shoes
• ANLA member, Kelly from Garden Genetics
• NACS member, Norm from Umpqua Oats
• MIA member, Lucille 

Improve Your Website with the FedEx Web Integration Wizard

12/05/2013 — Leah Palnik

Online retailers know how important it is to streamline the shopping experience for their customers. They constantly strive to have a well designed website, a well managed inventory, and a simplified shipping process. That's why FedEx offers online retailers a way to improve their ecommerce space with the FedEx Web Integration Wizard.

The FedEx Web Integration Wizard is a great tool for online retailers that don't have a dedicated developer, or for anyone looking for a simple way to integrate FedEx functionality to their website. Once this functionality is incorporated into your website, your customers can compare FedEx shipping rates and transit times, create shipping labels, and track the status of their shipments - helping to create a more engaging website and improve overall customer satisfaction.

How to get started:

1. Create or locate a page on your site where shipment information will be featured, such as an order status page for tracking.

2. Open the FedEx Web Integration Wizard.

3. Enter your FedEx account information and set up a merchant account profile.

4. Select which services you would like to appear on your website (shipping, tracking, rating, or returns).

5. Answer a few questions about your shipping characteristics.

6. Select a design to match your website needs.

7. Click "Get Code" to automatically generate HTML code based on your input.

8. Copy and paste the HTML code into your website files where you would like the shipment information to appear.

The best part of this FedEx integration is that it can help you save money. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services. If you're not sure if you qualify for one of our small package shipping programs Contact Us and we'll find the solution that's right for you. Also, if you click the button below, we can provide you with a free, no-obligation shipping analysis to determine how much we can help you save on your small package shipping.

FedEx and UPS rates are increasing in 2020! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

2014 FedEx Express Rate Increases

11/07/2013 — Leah Palnik

FedEx recently announced a general rate increases (GRI) of 3.9%, on average, for domestic and international FedEx Express services. These new rates will take effect January 6, 2014 along with the FedEx Ground and FedEx Home Delivery general rate increases that will be announced later this year (historically, FedEx will match Ground increases set by UPS). In previous years, FedEx has had higher rate increases but offset them with a fuel surcharge reduction. This year they have not announced plans to modify the fuel surcharge indexes and instead have lowered the rate increase compared to previous years (3.9% vs. 5.9% in 2013).

List Rates
For a full listing of the 2014 FedEx Express rates, click here. Below is a snapshot of average rate increases for commonly used FedEx Express services.

Source: http://www.parcelindustry.com/Media/PublicationsArticle/fedex1.pdf 

Surcharges
2014 will also see changes to surcharges and fees for FedEx Express services, with a 7.6% average increase.

• Declared Value. Declared value charges for FedEx Express services will increase from $0.85 to $0.90 per $100 of value. For U.S. package services, the charges apply to shipments valued in excess of $100, and the minimum charge will increase from $2.55 to $2.70. For international services, the charge applies to the value in excess of $100 or $9.07 per lb., whichever is greater.

• Delivery Area Surcharge. For applicable FedEx Express U.S. package services, a delivery area surcharge applies to shipments destined to select ZIP codes.

• Collect on Delivery (C.O.D.). For applicable FedEx Express U.S. package services, the charge for FedEx C.O.D. will increase from $11 per package to $12 per package. The cap for FedEx Express Multiweight shipments will increase from $77 per shipment to $84 per shipment.

• Residential Delivery Charge. For FedEx Express U.S. and international package services, a residential delivery charge applies to shipments to a home or private residence.

• Saturday Delivery. For applicable FedEx Express U.S. package services, the charge for Saturday delivery will increase from $15 per package to $16 per package. For applicable FedEx Express international package services, the charge for Saturday delivery will increase from $15 per shipment to $16 per shipment.

• Saturday Pickup. For applicable FedEx Express U.S. package services, the charge for Saturday pickup will increase from $15 per package to $16 per package and the maximum charge will increase from $105 per shipment to $112 per shipment. For applicable FedEx Express international package services, the charge for Saturday pickup will increase from $15 per shipment to $16 per shipment.

How to Effectively Offer Free Shipping

10/17/2013 — Leah Palnik

If you've ever done any online shopping, you're probably familiar with those two little magical words — —free shipping!' As a consumer, it's great — who doesn't love free? But as a small business trying to find your place in the wide world of e-commerce, it can be a little intimidating. As free shipping becomes more common, many customers are now coming to expect it; creating a wide range of costs and benefits for retailers. However, many retailers have experienced benefits, including increases in sales and customer retention, that outweigh the costs.

There are several ways you can offer free shipping to your customers without sacrificing profits. Here are some options to consider:

• Provide free shipping at a minimum order price. Try providing free shipping at a minimum price point that's above your average order size. If you offer free shipping on orders over $50 for example, a customer who has $49.99 or less in their shopping cart is likely to purchase an additional item to reach that benchmark for the deal.
• Offer free shipping on orders for a limited time. With the holidays fast approaching, customers are looking for the best deals. Providing a short window of time for free shipping could be just the right trigger for a sale.
• Target your best customers. Instead of presenting the masses with free shipping, target a select group of customers you can email to increase lifetime value.
• Create a flat shipping rate. Customers like knowing what costs to expect when shopping online. There's nothing worse than filling up your shopping cart, expecting to pay a certain price, and getting slammed with higher-than-expected shipping costs at checkout.
• Use a one-time fee. Shipping clubs with an annual fee can be a great way to entice customers and drive customer loyalty. A good example of this is Amazon Prime. Customers pay an annual fee to shop on Amazon.com and receive unlimited free two-day shipping.
• Offer free shipping on special products. You can offer free shipping on products with higher profit margins, on products where you have excess inventory, or any special item you're looking to promote.
• Reduce your overall shipping costs. Work with your freight carriers or a 3PL (like PartnerShip) to ensure you are saving as much as possible on your shipping. Any additional savings you can garner will ensure you're overall profit margin is not negatively impacted by any free shipping promotions or offers.

Once you've decided how you want to offer free shipping to your customers, it's important to promote it. Use email marketing to announce it to your customers and advertise it on your website so when your customers are shopping, they can't miss it. Also, be sure to be very transparent about how to receive free shipping if you're not offering it on everything outright. If the customer has to complete an action (i.e. order at least $50, sign up for a shipping club, etc.), make it clear in the beginning what that action is.

Once you've implemented your free shipping strategy, make sure to measure it. Take a look at the costs including increased IT expenses, customer service issues, and your shipping expenses. If these costs outweigh the benefits (increased revenue and an increased customer lifetime value) you should re-evaluate. You may need to experiment with your tactics to find the one the works best for you.  

Through a PartnerShip association shipping program, you can save on select FedEx^® services for small package shipping and with LTL freight carriers for large shipments — savings that can be used to fund a free shipping offer to your customers. Want to learn how another business used free shipping to improve their bottom line? Click here to read a case study featuring a PartnerShip customer that used its PartnerShip savings to implement a free shipping strategy. To find out how PartnerShip can help you save on your shipping costs, click on button below for a free, no-obligation shipping analysis.

PartnerShip Carriers Recognized for Quality Services

08/26/2013 — Scott Frederick

Just like last year, once again, almost all of the PartnerShip core carriers were recognized with Quest for Quality awards this year by the readers of Logistics Management magazine.

As part of the 30th annual Quest for Quality awards competition, Logistics Management readers evaluate companies in all modes and service disciplines, choosing the top performers in key categories. This year the research group received 6,179 total responses. In order to be a "winner," a company had to receive at least five percent of the category vote. Transportation service providers are rated on five key criteria: On-time Performance, Value, Information Technology, Customer Service, and Equipment & Operations.

Here are the PartnerShip carriers that received awards this year:

• National LTL Freight:

• National: FedEx Freight, Con-way Freight
  

• Multi-Regional: FedEx Freight, Old Dominion, UPS Freight
  

• Surface Package: FedEx Ground, UPS

• Regional LTL Freight:

• Northeast/Mid-Atlantic U.S.: New Penn, Pitt Ohio

• Western U.S.: Reddaway

• Truckload/Specialized:

• Dry Freight: Pitt Ohio, Con-way Truckload

• Expedited: UPS Urgent, Old Dominion, Pitt Ohio, FedEx Custom Critical

• High Value Goods: United Van Lines

• Air Express:

• Air Express: FedEx Express

On behalf of PartnerShip, our employees, and the thousands of our customers that rely on your services as part of our shipping programs - congratulations to all of the carriers that won Quest for Quality awards this year! PartnerShip works with only the best carriers in the industry - and you've all proven to be in that category once again.

The Best Way to Transport Your Display Materials to an Event

08/14/2013 — Leah Palnik

If you find yourself traveling frequently for business — whether it is to meetings, conferences, or trade shows — you know that it can be a challenge to find the best way to transport your marketing collateral and materials. Sometimes you may require exhibit transportation services for your larger, palletized shipments, but other times you might just have display materials for a small booth or table. Before you try to stuff all of those materials into your suitcase, consider shipping them. 

Shipping to a conference or a meeting can be a cost-effective and convenient option to get your materials where they need to be. But where do you ship it to? Through FedEx, you can ship your package to a nearby FedEx Office store at no extra cost. There are many FedEx locations around the country — often times right around the corner from, if not in, your hotel or conference center. And if you are an enrolled member in a PartnerShip association shipping program, your FedEx discounts still apply to the shipment.

Gone are the days that you try to stuff your marketing collateral in your personal luggage or pay extra to check an additional bag! Not to mention, you don't have to worry about lugging another set of luggage around the airport and to your hotel or show site.

Watch the video below or follow these simple steps to benefit from this free service:

1. Find a FedEx Office location

2. Create your shipment

3. Select the option —hold at a FedEx location'

4. Pickup at your convenience

What You Need to Know About Shipping Internationally

05/21/2013 — Leah Palnik

Going global with your business is a great opportunity for growth. Whether you've already taken your business overseas or have just started to dip your toes in the international waters, simplifying your shipping is essential for keeping your business afloat. Here's what you need to know about shipping internationally:

Find your markets
When you're selecting your international markets, there are several factors to consider. You may start off by selecting markets where you have local distribution connections or markets that have signed free trade agreements with the U.S. You may also think about staying within markets with a common language to avoid any cultural or language barrier issues.

As you continue to expand it's also important to be aware of the requirements and restrictions you will encounter. Each country has different restrictions or prohibitions that affect what commodities are allowed to be important and exported.

Some countries also have standards you must adhere to. For example, China uses the China Compulsory Certification Mark (CCC), whereas European countries conform to the Conformite Europeenne (CE). Products not meeting the particular standards in these markets may be held up by customs and will be subject to other penalties. Make sure you are aware of these restrictions and standards to avoid any unwanted hassles down the road.

As a helpful tool for researching your markets, FedEx provides Country Profiles that can give you detailed information on import and export restrictions, trade group information, prohibitions, standards, and more.

Prepare your documents
There is a great deal of documentation involved with shipping and selling a product internationally. The U.S. government requires export documentation and each importing country will have different requirements for import documentation.

What documentation you have to submit with your shipment depends mostly on where you are shipping to and what you are shipping. The primary shipping document for most international shipments is the International Air Waybill (IAWB). Other documents you may need will vary. Some other common documents include the Commercial Invoice, Certificate of Origin, and Electronic Export Information (EEI).

To help you determine what international documents you will need to complete, check out the FedEx International Document Assistance page.

Ship your products
When you have selected your markets, completed the necessary paperwork, and are finally ready to ship, it's important to select the right service at a low cost. It's also important to remember that things like duties, taxes, port handling fees and other customs charges will affect your cost. Saving money on your international shipments with a reliable carrier can make a world of difference. 

FedEx offers a number of services to fit all of your international shipping needs. Through an association shipping program, managed by PartnerShip, you can receive discounts on your international shipments with select FedEx services. PartnerShip works with over a hundred major trade associations, across many industries to provide their members with the money-saving tools to help them be successful. If you belong to an association we work with, take advantage of our free shipping benefits today - and save on your international shipping. If you're not sure if you qualify for one of our shipping programs contact us and we'll find the solution that's right for you.

2013 Small Package Rate and Accessorial Increases Report

01/02/2013 — Leah Palnik

Near the beginning of every New Year, the shipping experts at PartnerShip dig into the small package carriers' annual rate increase announcements. We like to read between the lines for our customers, digest the tables and charts, see what information is out there that FedEx and UPS didn't say, or maybe just hinted at. As always, how much more expensive your particular small package shipments will be in the New Year largely depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts regarding this year's small package rate increases:

• UPS rate increases in effect December 31, 2012
  
  » 4.9% average rate increase for UPS Ground (5.9% average increase -1% reduction in the fuel surcharge)
  » 4.5% average rate increase for UPS Air (6.5% average increase -2% reduction in the fuel surcharge)
• FedEx rate increases in effect January 7, 2013
  
  » 4.9% average rate increase for FedEx Ground and FedEx Home Delivery services (5.9% rate increase -1% reduction in the fuel surcharge)
  » 3.9% average rate increase for FedEx Express services (5.9% average increase -2% reduction in the fuel surcharge)
• UPS will enjoy an extra week of the rate increases by beginning 12/31/12 to FedEx's 1/7/13

Interested in learning more? Our exlcusive report includes detailed tables and insights. Click the button below to read on ...

Ground Delivery Small Package Shipping Options

11/08/2012 — Leah Palnik

PartnerShip helps thousands of customers save on their ground delivery small package shipments (i.e., generally those under 200 pounds). Through our unique alliance with FedEx^®, we help ensure our customers get access to fast and reliable small package shipping services, while maximizing their savings.

Last week we talked about the various small package shipping options for U.S. Express and International Express services. This week, we'd like to point out the discounted ground delivery small package shipping options that are available through one of our association shipping programs:

• FedEx Ground^® Choose this service for economical ground delivery to U.S. businesses. You get day-definite delivery in 1—5 business days (3—7 business days to and from Alaska and Hawaii) based on the distance to your destination. Delivery is by the end of the business day. Available to every business address throughout all 50 states (service for remote Alaskan locations and the Hawaiian islands of Lanai and Molokai is inbound only). For more information, go to fedex.com/ground.
• FedEx Home Delivery^® Get residential day-definite delivery in 1—5 business days (3—7 business days to and from Alaska and Hawaii) based on the distance to your destination. Delivery is between 9 a.m. and 8 p.m., Tuesday through Saturday. Available to every U.S. residential address, for packages up to 70 lbs. Convenient delivery
  options are available for recipients with appointment and evening requirements. For more information, go to fedex.com/homedelivery.
• FedEx International Ground^® Get economical day-definite ground delivery to Canada typically in 2—7 business days, based on the distance to your destination. Delivery is by the end of the business day. Customs clearance is included through this brokerage inclusive service (a fee applies).

Small Package Solutions

Our discounted small package shipping services are completely free to eligible businesses participating in one of our association shipping programs. If you are currently a member of a professional association or trade group, ask them if they have a discounted small package shipping program through PartnerShip. You can also give us a call at 800-599-2902, or send an email to sales@PartnerShip.com, and we'll find out for you. If not, we'd love to talk to your association leadership team to see if we can build a program for you and your fellow members.

To learn more about our other services, click the button below.

Small Package versus LTL Freight

09/06/2012 — Scott Frederick

A common dilemma for businesses is deciding the appropriate shipping mode to use for their important shipments. Shipping mode choices include LTL freight, small package, ground, air, ocean, rail, intermodal, and others. When deciding whether to use a small package or LTL freight carrier, for example, shippers must take into consideration the weight and characteristics of the shipment, including delivery urgency. The old —150-pound' rule is not an absolute guideline anymore, but obviously the weight of the shipment must be a major consideration in choosing a shipping mode.

Shipment Characteristics

The size, weight, and shape of the materials you are shipping can also impact your decision making. Are your boxes big and bulky, small and compact, unitized or loose? LTL often is a preferable choice when the shipment's boxes are oddly shaped, as in furniture. LTL is also the way to go when your shipment is palletized, as small package carriers only handle individual boxes. Being less automated than the small package shippers, the LTL carrier will often use forklifts instead of conveyor belts. Strange as it may seem, moving odd-shaped boxes and pallets with a forklift produces fewer damages than moving them on a conveyor belt with thousands of other packages. The shape of the carton may cause it to fall off the belt or at least be tumbled around a good deal. Also, when you ship multiple loose boxes, the chances of losing one or two them are greater than had you shipped them together on a pallet.

Shipment Destination

Another area to consider is the receiving facilities for the shipment. Is there a dock? Does the shipment need to be delivered to the tenth floor of a building with no freight elevator? Is inside delivery even necessary? LTL freight carriers will generally be better delivering dock-to-dock and business-to-business, while small package carriers are better able to handle inside and residential deliveries.  

Service Needs

Service must also be taken into account. If your shipment must travel 2,000 miles and be delivered the next-day, you're going to have to consider an air express service (unless it's Friday, in which case some ground carriers can use the weekend to get your shipment across the country). Generally, if you don't need your shipment delivered within one or two days, LTL freight is going to be less expensive than small package carriers who have more urgent delivery capabilities built into their systems — particularly as your shipment weight increases. LTL freight may also be a good option for shipments moving less than 500 miles, because you can often get next-day delivery on those distances.  

Pricing and Fees

Of course, the primary consideration is quite often price. Most of you are painfully aware of the charges small package carriers assess for services such as rural delivery, address correction and Saturday delivery. LTL carriers have similar charges as well, especially for inside delivery or delivery to a recipient who has no loading dock. Carriers in both industries continue to charge fuel surcharges, which also have a material effect on your shipping price. On a percentage basis, LTL carriers generally charge higher fuel surcharges (about double that of small package carriers) but, in the end, it's the total price you need to look at, since LTL is often less expense on the —line haul' portion of the invoice.

Loss and Damage Concerns

The risk of loss or damage to your precious shipment is always a concern, regardless of what type of carrier you use.  Small package carriers have a higher loss and damage ratio than LTL carriers, but neither is altogether immune to the issue.  LTL carriers provide the advantage of providing significantly more liability coverage than small package carriers (which are often capped at $100 per package). So a small package carrier will have only $300 worth of liability on that 3 package, 300 pound shipment; whereas, an LTL carrier would provide liability coverage of $750. That's more than double the protection of the small package carrier.

Making the Decision

Sometimes the best course of action is to seek help from transportation professionals (like those at PartnerShip) to help you make the right decision. There is no set formula for the best service-price ratio, but as a general rule of thumb, shipments over 200 pounds that don't require urgent delivery are best handled by LTL carriers. Shipments less than 200 pounds, those that can't be placed on a pallet, or those that require urgent delivery over longer distances, are often best handled by small package carriers.

Interested in learning more?                                             

Let PartnerShip help you to determine when and where you should be using small package and LTL freight carriers. Contact us today.

No matter the package size or shipment mode, it's important to be using the proper techniques for your packaging. Learn how to prevent costly and time-consuming mistakes by downloading our ultimate guide to proper packaging. 

Consolidate Orders to Save on Shipping

08/13/2012 — Scott Frederick

As a general rule of thumb, one big order ships for less than three smaller orders. That means consolidating multiple orders into a single shipment whenever possible, and always striving to minimize the number of packages you send. All too often, shipments are arranged as they come in from sales or order processing. However, a little planning and visibility goes along ways towards shipping savings.

As the example below shows, one 30 pound small package shipped via FedEx produces a 27% expense reduction over shipping two separate small packages, netting almost $6 in savings.

When it comes to small package shipping, these savings - although seemingly small at times - definitely add up over time. However, when you consolidate LTL freight shipments, the savings become immediately more impressive. As the example below shows, by consolidating three 300 pound shipments into one 900 pound freight shipment, the shippers was able to save 25% - or $454.24 - on their freight shipping expense.

Consolidating orders provides additional benefits to both shippers and receivers (consignees) of small package and LTL freight shipments, including:

• Reduced shipping supply expenses
• Greater fuel efficiency (better on the environment)
• Less time needed to receive, handle, and restock orders

One strategy for shipment consolidation is to create a simple shipping guide that takes into consideration all of your business rules for carriers, weight breaks, orders, and shipping contacts. Distribute this guide to your vendors and discuss it with your customers. A little communication can often go a long way towards small business savings. If you need a partner to help you through the process, you can always call on PartnerShip ... we're here to help.

Three Steps to Take Control of Inbound Shipping

05/08/2012 — Scott Frederick

Like many small businesses, you may not currently have control over the shipments coming into your business. It is common for small businesses to let the vendor shipping the product to you arrange the carrier, select the mode of transportation, and manage the actual pickup and delivery times. In some cases, the convenience of this sort of arrangement may work well for your situation. However, that convenience comes with a cost: you may find that you are paying significantly more for inbound shipping than if you had arranged for it on your own.

Reducing inbound shipping costs is one of the easiest, yet most overlooked ways to reduce your overall transportation expenses. Since you are the buyer of the goods, you can and should determine how those goods are shipped to you. When you control and route your own inbound shipments, you have an excellent opportunity to lower your costs.

Here is a quick, three-step process for getting control of your inbound shipping expenses:

1. Look at one or two invoices from your major suppliers. See what dollar amount they allocate for “shipping and handling.”

2. Compare your suppliers’ freight shipping rates with the rates you have in place with your preferred shipping provider. If you’re a PartnerShip customer, you can easily log into our website and perform a couple rate quotes to see how your freight rates compare (or just give us a call – we’ll do it for you).

3. If you find your rates are lower, draw up a letter for your purchasing department to forward to your suppliers providing details on how you want your products shipped, your small package carrier account number, and your preferred LTL freight carriers (again, PartnerShip can do all of this for you if you’d prefer). The letter also acts as an insurance policy if your supplier mistakenly ships by a carrier not on your routing letter. Having a signed letter allows you to charge vendors back for their mistakes.

Updating your routing instructions with all of your suppliers is the first important step in gaining control of your inbound shipping costs. Ensure your products are delivered to you via your preferred carriers and at your known rates. This takes the unpredictability out of inbound shipping costs, and can save you money in the process.

Small Businesses Cope With Rising Shipping Costs

04/20/2012 — Scott Frederick

With ever-soaring fuel costs and the resulting rise in shipping rates, many businesses may find their profit margins shrinking even as production increases. Many small businesses use e-commerce in the start-up stages, but with the recent rise in shipping rates, owners are looking for ways to reduce shipping costs.  

In-House Strategies

• Postage meters are an inexpensive way to save time and money for companies that either ship very small light weight products or for which shipping is a smaller portion of their overall product delivery.  A Postage meter will weigh packages accurately, assess precise postage charges and print the shipping label. By taking the guessing out of shipping estimates, both your company and your customer will be satisfied, and shipping overages will be eliminated.

• Compare services and pricing for each carrier on common shipping requirements. Factor in delivery time as well as shipping costs; customers satisfaction is higher when delivery times are shorter.  Eventually you'll gain a picture of what shipping criteria is best serviced by which service. For example FedEx Express has overnight and 2-day delivery options for small packages, but if your shipment is heavier (more than 10 pounds) and isn't under strict time constraints, it might be more cost-effective to use FedEx Ground service.

Outbound Shipping Solutions for Larger Volumes

• Consolidate your orders into less-than-truckload (LTL) freight shipments (more than 200 pounds) could save you even more on shipping. If your company has multiple products going to the same customer, it might make sense to consolidate them into one shipment and use an LTL freight carrier like UPS Freight or YRC Freight. You'll pay quite a bit less than parcel or express service and your liability coverage will be much better as well should there be any loss or damage in transit. 

• Work with a third party logistics (3PL) company. If you don't have the time or resources to figure out which carriers and services would be best for your shipping volumes, a company like PartnerShip can handle the logistics for you and often negotiate a better overall shipping rate for you.

Inbound Shipping Costs

• Small business owners may lump their inbound freight costs into the cost of goods, but poor inbound freight management can severely impact your gross profit margin.  Be sure every vendor invoice is reviewed for hidden fees. Vendors can inflate "Shipping and Handling" fees to compensate for lower priced items. 

• Send routing instructions to your vendors specifying which carriers you want them to use when shipping you your products. You can also set up a direct billing account for vendors that ship to you via FedEx or LTL freight carriers through your 3PL partner. With a direct relationship, you'll be able to track shipping volume putting you in a place to negotiate a better overall rate. 

Small businesses must continually adjust their practices to survive and grow in today's economic climate. Adapting to rising shipping costs is something your company can't afford not to do.