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Mid-Year Rate Change Expected to Impact Shippers

 

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Each year small package carriers evaluate their shipping rates and then make adjustments that, in turn, can have a large impact on your business. UPS recently announced some mid-year rate changes that could create an immediate and unexpected spike to your shipping costs. Here is what you need to know about these changes and what type of shippers they will affect:

Mid-Year Rate Changes Expected to Impact Shippers

 

Each year small package carriers evaluate their shipping rates and then make adjustments that, in turn, can have a large impact on your business. UPS recently announced some mid-year rate changes that could create an immediate and unexpected spike to your shipping costs. Here is what you need to know about these changes and what type of shippers they will affect:

 

  • Effective June 4th 2018 UPS increased Over Maximum Limits and the Oversize Pallet Handling Surcharge by $150. A package is considered over the maximum limits if it weighs more than 150 lbs, is greater than 108 inches in length, or is greater than 165 inches in length plus girth. This will affect any shipper who ships large packages.
  • Effective June 4th 2018 UPS added an audit fee for shipping charge corrections. This fee will be applicable to any shipper who has an average shipping charge correction in a week that exceeds $5, and will be charged at the greater of $1 per shipping charge correction or 6% of the total shipping charge correction amount. This will affect shippers who are not able to accurately upload dimensions and weight when manifesting a package.
  • Effective June 11th 2018 UPS will increase the ground fuel surcharge by 0.50% for all thresholds. This will affect all shippers who ship ground shipments and do not have a custom fuel table negotiated in their contract.
  • Effective July 8th 2018 UPS will increase the charge for Large Package Surcharges delivered to a residential address to $90 and increase the Additional Handling Surcharge for packages with an actual weight greater than 70 lbs to $19.00. A package qualifies for a large package surcharge if it is greater than 96 inches in length or is greater than 130 inches in length plus girth. This will affect any shipper who ships large packages.

Large packages (such TVs, dressers, mattresses, etc.) are obviously onerous for shippers, but becoming more and more common as ecommerce becomes the norm. As e-Commerce growth continues to increase, the need for tools to report, audit and control small package spend are paramount to successfully managing your carrier relationships and delivering on customer expectations. Identification of billing, pricing and service failures in real-time is a key aspect of parcel audit. Service center and support teams need to be in place in order to recover expenses which are not valid.

enVista’s parcel audit services provide many benefits including:

  • Reduce your transportation expense through the identification of late shipments
  • Ensure your shipments are billed to your agreement and that invalid accessorial charges are credited through enVista’s robust small package invoice audit
  • Normalize spend and package level detail across small package service providers
  • Report on carrier performance, network efficiency and package level information
  • Global support for small package carriers with less sophisticated invoicing capabilities

enVista can help audit these new charges to ensure you are being billed the proper rates as well as help negotiate lower rates in your contract. If you are in need of auditing or contract negotiating services read more about enVista’s Global Freight Audit and Payment Solutions.

 

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