Shipping & Transportation News

Carrier Base Rates are going up – PartnerShip Programs Lessen the Impact of the Increase

Less-than-truckload (LTL) carriers UPS Freight, Con-Way Freight, YRC, and ABF Freight System, Inc. have all announced a general rate increase averaging 6.9 percent on non-contractual shipments. ABF’s new rates will be effective July 25, while UPS Freight, Con-Way Freight, and YRC’s increases are scheduled for August 1, 2011.

Believe it or not, the economy is improving overall, slowly but surely. This has caused a domino effect of people buying more products and suppliers shipping more products, which is using up more space in truck trailers. In addition, many of the carriers state that the rate increases are necessary in order to keep up with cost of improving equipment, facilities, and technology – all to remain competitive and provide better service. These improvements should result in faster transit times, easier tracking processes, and greater sustainability efforts.

A PartnerShip shipping program can help lessen the impact of rate increases

The effect of the rate increases will vary for individual shippers and shipments based on characteristics such as geography, lane, product classification and weight. Also note that fuel surcharges for the carriers are a variable cost (like prices at the gas pump), and are also subject to rise and fall throughout the year. Using a PartnerShip shipping program, customized for your business and industry, can help lessen the impact of these rate increases.

For more information about the individual carrier rate increases, please reference these links below for each carrier:

UPS Freight

ABF Freight System, Inc.

Con-Way Freight

YRC


For questions on the rate increases and how we can put together a customized solution for you, contact PartnerShip at 800-599-2902 or email select@PartnerShip.com.

INAUGURAL LETTER

Welcome to the 1st edition of The PartnerShip Connection. The staff here at PartnerShip understands that every business – in every industry – has two priorities at the top of its list:

1. Sell more product or services
2. Lower overall operating expenses

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SHIPPING TIP

Make sure you’re using the correct mode and service level

Examine where you spend your transportation dollars. Is your spending concentrated in less-than-truckload (LTL) freight rather than small package, or air instead of ground? These distinctions are called modes of transportation... MORE

ASK THE EXPERT

Q. When auditing freight invoices, what should I be looking for?

A. It is estimated that between 5% and 10% of freight invoices contain some sort of error. Auditing your freight invoices can help you catch costly mistakes. You should audit several line items on a carrier invoice, most notably: checking for the correct discount, making sure you are billed for the service you requested, verifying product classification (freight shipments only) and monitoring extra service charges.

CUSTOMER COMMENTS

The NSGA Shipping Program is the most widely used service by our members. On average, participants enjoy annual savings in excess of $1,000, which more than covers their annual membership dues. In addition, the PartnerShip team provides the highest level of customer service to our association and members. Thank you PartnerShip!

Darlene Plunkett
Director of Membership & Sales
National Sporting Goods Association

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