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UPS Rate Shock: How to Mitigate the Impact
Manage episode 445808533 series 3585669
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In this quick take episode of Parcel Perspectives with Glenn Gooding, Glenn breaks down the latest UPS rate hikes and their significant impact on the small parcel shipping market. He takes a deep dive into the new UPS billing methods, including minimum billable weights and updated surcharges, revealing how these changes will drive costs far beyond the advertised 5.9% rate increase. Glenn also explains how eliminating dual labeling for UPS SurePost will lead to 100% brown delivery, increasing costs for lightweight parcels. Larger shipments face similar cost hikes due to new surcharges and billing structures.
Glenn sheds light on the limited options available to shippers, given the UPS-FedEx duopoly, and why regional carriers aren’t viable alternatives for larger volumes. However, with lower daily volumes and available capacity, now is a prime time for shippers to negotiate better deals. His advice? Analyze your shipping patterns and costs to navigate this changing landscape effectively.
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