UPS and FedEx Minimum Net Charges Increasing at 5 1/2 Times the Rate of Inflation!


For small business owners, shipping costs can account for a substantial portion of your budget, especially if you ship packages out using UPS, FedEx, and other well-known carriers on a regular basis.  Did you know that over the last six years, the minimum net charge of these shippers has risen by 45%?  This is huge, and indicates that rates are increasing at a rate 5 1/2 times that of inflation.  At Parcel Audit Pros, we know there are many reasons to have your shipping costs audited - and this is one of them. Shipping costs make up a bigger piece of the pie every year and you need to look for savings wherever possible.

UPS and FedEx both announced their rate increases for 2015 in the fall of last year, both citing a 4.9% annual rate increase for this year.  While this is an average increase, it is important that businesses who ship frequently have a detailed analysis of their shipping costs performed.  By carefully reviewing the services you use, typical packaging characteristics, and pricing agreements with the shipping services you use, you can fully understand the impact to how much you pay for transportation of parcels.  While the average increase for both carriers is 4.9%, other rates have increased substantially more, such as the minimum net charge which has increased by 5.9% for both UPS and FedEx Ground services.

Many business owners and shipping managers do not fully realize the impact of minimum net charge, which is a charge essentially designed to ensure carriers enjoy a minimum revenue per package shipped - it‘s how they make money.  However, as a business owner, the minimum net charge can actually result in your not receiving the full benefit of other discounts that have been negotiated.  In many cases, the minimum net charge specified in FedEx and UPS contracts pertain to one-pound packages rated for zone two - a fact you may not be aware of. 

If you are a company who generally ships 1 lb. small boxes, you are likely impacted the most considering the ground minimum net charge for this size package is now higher relative to standard package rating.  Across all carrier services, air minimum net charges have increased from 1.85% to 8.18% in some cases for 2015. 

How much are you really paying for shipment of your parcels using UPS, FedEx, and other carriers?  Without a parcel auditing solution, it is extremely difficult to know if you are getting taken advantage of in terms of rates, or if there may be circumstances in which you should have been refunded when a package or parcel was not delivered on time.  Considering the sky-high cost of shipping in 2015, double charges or surcharges are something most small businesses simply cannot afford.  Perhaps you were billed for a package that never shipped.  Do you really know what is going on when it comes to parcel shipping, and how it may be impacting your bottom line?

At Parcel Audit Pros, we make parcel auditing fast, secure, and affordable.  Let us help you recover the refunds you deserve, signup for free today