The Essential Guide to the 2021 FedEx and UPS Rate Increases

December 8, 2020 at 10:52 AMLeah Palnik
The Essential Guide to the 2021 FedEx and UPS Rate Increases

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:

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:

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.

Download the essential guide to the 2021 FedEx and UPS Rate Increases

Carrier Closures for the 2020 Holiday Season

November 19, 2020 at 3:00 AMJen Deming
2020 Holiday Schedule Blog Post

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

Truck in SnowTruck drivers deserve some time off too, and it’s important for shippers to know which dates carriers are closed for business so you can plan your loads. Here are the 2020 holiday season closure dates for some common freight carriers:

  • 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.
Truck in Snow

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!

Gearing Up for National Truck Driver Appreciation Week 2020

September 1, 2020 at 4:10 PMJen Deming
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Our country has long depended on the tireless efforts of the nation’s truck drivers, and this year, we have even more reason to be grateful. September 13-19 is National Truck Driver Appreciation Week, and here in 2020 it takes on a special significance. Throughout the unprecedented challenges our country has faced during COVID-19, businesses have depended on shipments being delivered that our homes depend on. From medicine to food items for families, medical provisions for essential workers and school supplies for our makeshift at-home classrooms, truckers are on the front lines, at risk, so that we receive the goods we need to keep this country going.

Many national and local businesses and service centers are running promotions and contests for truck drivers during National Truck Driver Appreciation Week in honor of these heroes behind the wheel.

  • PartnerShip - As a special thank you to our very own partner truckers, PartnerShip will randomly select one driver daily moving loads during National Truck driver Appreciation Week to win a Dunkin’ Donuts gift card. 
  • Shell Rotella SuperRigs 2020 – This year, the popular truck “beauty contest” is going virtual and has added a special category for “Most Hardworking Trucker.” Tune in online for winners being selected during National Truck Driver Appreciation Week. Category winners will be featured in a 2020 Shell Rotella SuperRigs, MyMilesMatter Rewards Points, and all kinds of merch like jackets, hats, and other goodies. 
  • Travel Centers of America – Starting Sept. 1, TA will begin a month-long celebration of America’s truck drivers. UltraONE members making a fuel or service purchase will be entered to win the “TA Driver Appreciation sweepstakes”, with prizes like airline tickets, gift cards, an Indian Scout motorcycle, and more. Additionally, the service centers will be offering extra points, discounted services and products, and other promotions through the TruckSmart app.
  • Pilot Co. – Through Sept. 1-30, truckers receive special offers and can to enter-to-win signed merchandise from singer-songwriter Randy Wylie Hubbard, who also helped create a special video honoring America’s professional drivers. Through the month, drivers also receive free drinks and shower services every day all month long, free diagnostic tests on their trucks, and bonus Push4Points.

In addition to these special promotions being run during Truck Driver Appreciation week, many businesses and restaurants have also offered free services and meals throughout the COVID-19 crisis, as a thank you for the extra efforts and added risk these drivers are taking to get consumers the supplies they need.

  • CDL Meals – Drivers can order these healthy meal alternatives on-the-go through the app and receive an extra 25% off using the code “SHOP25”.
  • Denny’s – Participating Denny’s locations have extended the 15% off online orders for truckers. Call individual locations to confirm, and use promo code "Driver15" online.
  • Cracker Barrel – Locations nationwide are offering free coffee and fountain drinks for drivers. Speak to a store associate for details, and find a Cracker Barrel along your route at crackerbarrel.com/locations.
  • Papa John’s – Professional truck drivers receive 25% off regular menu prices until Dec. 31, 2020. Use code "Deliver25" at checkout.
  • Ruby Tuesday – Between noon and 8 p.m.,truck drivers receive 25% off their online order. Drivers should enter "25" when prompted at checkout.
  • Motel 6 – For drivers who need a break from sleeping in their cabs, the hotel chain is offering special discounts for drivers during COVID-19 when booking through the Trucker Path app.

We appreciate all of our drivers – thanks to your hard work and dedication on the front lines, our customers and our nation’s businesses can keep moving through this crisis. 

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Freight Brokers and Carriers: 3 Major Distinctions

April 2, 2020 at 9:23 AMJen Deming
Freight Broker and Carrier Blog Post

It's pretty easy to get lost in freight shipping terminology. A basic question that still puzzles even experienced freight shippers is understanding the differences between a freight broker and carrier. The distinctions between both affect factors like geographical coverage, liability, and responsibilities. Pinpointing these key differences will help you better understand each part they play in getting your loads from here to there. 

Responsibility to shipper

When looking at a freight broker and carrier, it's important to understand the primary responsibility of each party in the physical transportation of your freight. A carrier refers to the company, or operator, that directly handles the transportation of your shipment. Common national carriers include UPS Freight, YRC Freight, FedEx Freight, and more. Carriers can specialize in less-than-truckload (LTL), dedicated truckload freight, or even specialized services such as refrigerated or oversized freight equipment.

A freight brokerage is a company that serves as a transportation intermediary rather than directly operating a truck fleet and physically moving your freight. A freight broker's job is to contract available loads with a carrier and find an acceptable rate within a specified time frame according to the shipper. The freight broker cuts down the time and effort it may take for a company to look for its own carriers and may decrease costs by shopping quotes.

Geographical restrictions

Most freight loads are moved by common carriers - the big name, national trucking companies like UPS Freight and others we mentioned earlier. Most national carriers have terminals, or hubs, set up in areas where there is a very high demand for freight shipping. This is where they have the greatest truck availability and most competitive pricing for their loads. For areas outside of these shipping hubs, common carriers may have a limited pick-up schedule or work with regional carriers for rural deliveries. Regional carriers consist of smaller businesses and fleets that operate within a specific area. So while a common carrier can theoretically get your freight anywhere in the U.S., it may take a longer amount of time due to the need to contract a regional carrier. 

Because a third-party logistics provider isn't managing assets and trucks themselves, they can essentially operate out of anywhere. Many brokerages have offices set up in hot shipping locations with satellite offices nationwide. Some brokerages specialize within a certain industry and become experts in specific types of loads such as oversized freight or cross-border shipping. They may also develop mutually beneficial relationships with local businesses and local carriers, allowing greater flexibility and premium service levels for special requests. In addition to domestic moves, brokers can also serve as a valuable resource for shippers moving freight internationally, offering guidance and expertise in addition to coverage options. 

Liability and ownership of freight

A major difference between freight brokers and carriers is the ownership of the freight while in transit. According to the Carmack Amendment, when a carrier agrees to move a load, a contract is formed per the shipper load and count (SLC) noted on the bill-of-lading. By signing the BOL, the shipper is accepting responsibility by stating that the freight was loaded securely and counted. At the time of pick-up, and until delivery, the motor carrier is fully responsible for the freight that it has on board. This means that should the load experience any loss or damages, then the carrier is responsible. If a claim needs to be submitted, the claim is with the carrier, rather than a broker who may have arranged for the transportation of the freight. 

From a legal perspective, a freight broker is not liable for damages to freight because the ultimate responsibility lies with the carrier. However, that doesn't mean that a freight broker can abandon their customer. A quality freight brokerage will have claims experts on staff that are knowledgeable about shipper's rights and responsibilities, liability restrictions, and proper claims filing procedures. While a carrier may have a legal responsibility to damaged freight, a freight broker has an ethical obligation to educate shippers and help out whenever a shipment encounters complicated roadblocks like a damage or loss claim.

The advantage of using a freight broker

When you work with a quality freight broker, you gain expertise, increase operational flexibility, and add a cost-saving alternative that you may not have when working directly with a carrier. Working with PartnerShip can ensure you have a team in your corner to help you navigate even the most unique shipping challenges. 

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2020 FedEx and UPS Rates Explained

December 10, 2019 at 1:29 PMLeah Palnik
2020 FedEx and UPS Rate Increases Explained

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.

Here are the released rates for 2020:

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.

Here are all of the announced surcharge changes:

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.

Download the free white paper: Your Guide to the 2020 FedEx and UPS Rate Increases

2019 Holiday Shipping Schedule

November 22, 2019 at 10:13 AMJen Deming
Holiday Shipping Schedule

It might be the most wonderful time of the year but getting your shipping in order during the holiday crunch can cause more headaches than too much eggnog. Most carriers adjust their holiday shipping schedules to include back-out dates and cut-off times on certain days of the year. Whether you are moving a truckload of trees or simply delivering to a customer's doorstep, it's important to take note of key dates to keep your holiday shipping running smoothly.

Holiday schedules for LTL freight carriers

You can't get your shipment moving if there's no trucks on the road. In LTL freight shipping, it's critical to check which dates your chosen carrier will be closed. Below, we've noted the most common freight carriers and their holiday shipping schedules for 2019:

  • YRC Freight will be closed November 28-29, December 24-25, and December 31-January 1.
  • XPO Logistics will be closed November 28-29, December 24-25, and January 1.
  • Old Dominion will be closed November 28, December 24-25, and January 1. There will be limited operating hours on November 29 and December 31.
  • New Penn will be closed November 28-29, December 24-25, and January 1. There will be limited operating hours on December 31.
  • Pitt Ohio will be closed November 28-29, December 24-25, and January 1.
  • Reddaway will be closed November 28-29, December 24-25, and January 1.
  • Dayton Freight will be closed November 28-29, December 24-25, and January 1.
  • R&L Carriers will be closed November 28-29, December 24-25, and January 1.
  • Estes will be closed November 28-29, December 24-25, and January 1.
  • Central Transport will be closed November 28, December 25, and January 1. There will be limited operating hours on November 28 and December 24.
  • Roadrunner will be closed November 28-29, December 24-25, and January 1.
  • FedEx Freight will be closed November 28-30, December 21-22, 24-25, 28-29, and January 1. There will be modified service hours on December 23 and December 31.
  • Holland will be closed November 28-29, December 24-25, and January 1. There will be limited operating hours on December 31.
  • New England Motor Freight will be closed November 28-29, December 24-25, and January 1.
  • AAA Cooper will be closed November 28-29, December 24-25, and January 1.
  • ArcBest will be closed November 28-29, December 24-25, and January 1.
  • UPS Freight will be closed November 28-29, December 24-25, and January 1. There will be modified service hours on December 1.

When it comes to your smaller, ground shipments, it's important to keep on top of peak surcharges during the holiday season. While both FedEx and UPS have announced that they will not implement additional fees on residential shipments, those that are over-sized or require additional handling will. UPS will apply surcharges to larger packages from October 1-January 4. Charges will be applied for those packages requiring additional handling from November 24-January 4. FedEx will charge extra for larger packages from October 21-January 5. The carrier will apply peak surcharges for those that require additional handling from November 18-January 5.

Deadlines and closures for small package shipments

For your small package shipments being moved by FedEx, make sure to check out the last days to ship and reference the 2019 holiday schedule so you can adjust your own holiday shipping schedule. 

FedEx holiday schedule graphic

PartnerShip office schedule

If your holiday shipping has you frazzled, PartnerShip can help you get sorted this season. Just a reminder, our office will be closed so we can enjoy time with our families November 28-29, December 25, and January 1. Happy Holidays!

UPS and FedEx Peak Surcharges Announced for 2019

September 24, 2019 at 8:23 AMPartnerShip
2019 UPS and FedEx Peak Surcharges

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)

UPS will apply peak surcharges for additional handling from November 24 through January 4:

  • $3.60 per package for shipments that require additional handling (a 14% increase)
FedEx peak surcharges will apply to larger packages from October 21 through January 5:

  • $37.60 per package for shipments that qualify as oversize (a 36.7% increase from 2018)
  • $435.00 per package for shipments that qualify as unauthorized (a 190% increase)
FedEx will apply peak surcharges for larger packages from November 18 through January 5:

  • $4.10 per package for shipments that requires additional handling (a 13.8% increase)

The growth of e-commerce and online shopping for large and awkwardly shaped products such as mattresses and furniture has necessitated these surcharges because heavy and bulky packages can’t move through the automated systems in which UPS and FedEx have heavily invested. Through these surcharges, shippers are paying the price for the loss of efficiency these packages represent.

If you’re a retailer, you should pay close attention to this year’s UPS and FedEx peak season surcharges so you can make any needed changes now to help ensure you remain profitable during the busy holiday shipping (and shopping) season. A good first step would be to look at the large packages you ship and determine which will be impacted by the peak surcharges.

The UPS and FedEx additional handling peak surcharge will be triggered by packages that:
  • Weigh more than 70 pounds
  • Measure more than 48 inches along its longest side and more than 30 inches along its second-longest side
  • Are not enclosed in traditional corrugated cardboard packaging

UPS Large Package and FedEx Oversize Package surcharges will be triggered by any package that exceeds 96 inches in length or 130 inches in length and girth.

UPS Over Maximum Limit and FedEx Unauthorized Package surcharges will be triggered by any package that exceeds 150 lbs., 165 inches in length and girth combined, or longer than 108 inches.

Surcharges for these packages are already high; additional UPS and FedEx peak surcharges represent an added dent to your bottom line. When deciding how to ship your small package shipments, or if you should use LTL to ship your oversized or heavy packages, you need an expert on your side. PartnerShip 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 explains some of the complicated changes you need to be aware of.

Download the free white paper: Your Guide to the 2020 FedEx and UPS Rate Increases

PartnerShip Appreciates America's Truck Drivers!

September 9, 2019 at 9:02 AMPartnerShip
2019 Truck Driver Driver Appreciation Week

This week has been designated National Truck Driver Appreciation Week and PartnerShip says “thank you” to all of the men and women who keep America moving forward by transporting freight safely, reliably and efficiently. 

“Every September, trucking comes together to recognize what we consider the most important profession in the country: truck drivers.” said American Trucking Associations (ATA) President and CEO Chris Spear. ATA Executive Vice President of Industry Affairs Elisabeth Barna added, “It’s a chance for the industry to work with the general public, policymakers and members of the media to acknowledge truck drivers for their dedication to safety and professionalism.

National Truck Driver Appreciation Week happens September 9 - 15 to honor all 3.5 million professional truck drivers for their hard work and commitment. PartnerShip is saying “thank you” with a Dunkin' Donuts gift card for drivers that move a load for us during the week. It’s our small way of thanking drivers that help our customers ship smarter.

To learn more about National Truck Driver Appreciation Week and the American Trucking Associations, visit the ATA website. To become a partner carrier, contact one of our Carrier Procurement Representatives for a setup packet at carriers@PartnerShip.com or visit our Becoming a PartnerShip Carrier webpage. Then check the PartnerShip Load Board and get started!

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Why Shippers Should Care About the CVSA Roadcheck

June 3, 2019 at 8:48 AMLeah Palnik
Why shippers should care about the CVSA roadcheck

Coming to a highway near you, the Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck will take place June 4-6. On average, 17 trucks will be inspected every minute in Canada, the United States, and Mexico during the 72-hour period. The CVSA-certified inspectors will primarily conduct the North American Standard Level 1 Inspection and could render trucks out of service or place drivers out of service for violations. In fact, nearly 12,000 trucks and buses were placed out of service last year.

Both the drivers and their vehicles are put through a 37-step inspection which includes checking items such as the braking system, securement of cargo, exhaust system, frame, fuel system, lights, tires, wheels and rims, and other critical components. Each year, the CVSA places special emphasis on a specific category of violations. This year’s focus will be on steering and suspension systems due to their importance to highway safety.

Drivers and their trucks are subject to these same inspections year-round, but the International Roadcheck event brings a significant increase in inspections that has a notable ripple effect.

What can shippers expect?

  • Capacity will tighten which will likely increase freight rates. Many smaller carriers and owner operators will take the days off to avoid the potential hassle. This can make it more difficult for shippers to find trucks during this time – driving up the load-to-truck ratio and therefore driving up rates.
  • Delivery times will be affected. Not only do all of these inspections take time, but some loads may be delayed if drivers are pulled out of service due to violations. Even something as simple as a cracked windshield could cause a vehicle to be pulled out of service. In general, it’s a good idea to allow for some extra time just to be on the safe side.

Finding a truck during Roadcheck week is easier when you’re working with a quality freight broker like PartnerShip. We’ll help you find the best option and let you know what you can expect. Get a free quote today!

Get a free quote!

3 Times You Should Consider Regional Freight Carriers

May 14, 2019 at 11:00 AMJen Deming
3 Times You Should Consider a Regional Carrier

Most shippers are familiar with the large network of national freight carriers commonly seen on the road, but regional freight carriers tend to be a little less recognizable. While larger freight carrier organizations have many benefits, including a sizable service area and the resources to have a large pool of available trucks, many shippers are not aware of the lesser-known benefits associated with using smaller local or regional carriers. In order to make smart shipping decisions, it's important for shippers to weigh the advantages of working with different types of carriers. Consider whether they may make sense for you, so that you're getting a service that best accommodates your business. 

When using a regional freight carrier makes sense: if you don't need to ship far to reach your customers

In terms of size, regional freight carriers operate in a smaller, more concentrated geographic territory than national carriers. Typically, the trucks are traveling 500 miles or less, though there are several companies that service larger areas or specific lanes. These carriers territories tend to fall into one of two categories: multi-state lanes or local transportation that operates within a certain city lines or borders. Examples of regional freight carriers include PITT OHIO, Dayton Freight, and AAA Cooper

If your business is shipping mostly to local customers that are located within state, or even in the same general geographic area of the U.S. (Southwest, Great Lakes, Northeast, etc.), you may want to consider using a regional carrier. Because these carriers aren't servicing larger cross-country lanes, they tend to have shorter hauls since they are delivering locally. This may limit where you can ship to, but keep in mind that there are still larger, national carriers at your disposal. There are many benefits to shorter hauls, as well. Typically, these hauls do not undergo as much loading and unloading at carrier terminals like longer hauls do. This can mean less damage and more on-time deliveries for your freight, ultimately getting you happy customers and better business. Smaller companies can sometimes spend more time focusing on continuing safety and service training. For example, Dayton Freight, a top regional freight carrier, dedicates time and energy pursuing the continued education of its team. In-house programs like "Dayton Freight Academy" to focus on improving and supplementing the skills of drivers and other employees when it comes to safety, truck maintenance, and freight handling. This intentional focus on service at the employee level helps regional freight carriers like Dayton improve the customer experience. 

Also because regional freight carriers specialize in a smaller geographic area, drivers may have greater familiarity with the region in general. They may be much more knowledgeable about things only locals drivers may know, like which complicated delivery addresses are located where, whether they are likely to be classified as a business or residential location, what time of day traffic is most congested, or other route obstacles to avoid. This can help avoid potential pick up and delivery challenges or other issues that may delay a shipment.

When using a regional freight carrier makes sense: if service level is of utmost importance

There are many service benefits in working with regional freight carriers. Due to their smaller size, they can often offer a more personalized class of service that puts a greater emphasis on the customer experience. Because these carriers are working with a smaller customer pool, they often can offer better flexibility and responsiveness when issues come up with a shipment. Many regional freight carriers have smaller corporate offices in local areas which may mean live, reachable customer service teams versus automated service lines. That way, shippers can have more direct contact with local terminals rather than being given the run around by calling a general customer help line. All in all, this may lead to better management of a shipment from pick up to delivery for some shippers who value a high level of customer service. 

When using a regional freight carrier makes sense: if you need to be particularly mindful of your freight spend

Using a regional freight carrier can lower your freight costs, especially if your business needs specialized services, such as liftgates or other accessorials. It's relatively common that regional carriers do not have to pay delivery area surcharges and have fewer accessorial costs and lower minimums than national freight carriers, which means they can pass on these savings through lower prices to shippers. Another benefit associated with working a smaller service area? Next-day or expedited delivery is more reasonable. For example, PITT OHIO, a regional carrier based in the Midwest, offers some of the most expanded next-day lanes in the nation. A small service area means a shorter haul, quicker transit time, and less work overall for the carrier to hasten delivery. Because of that, these expedited shipping costs can be lower than with national carriers.

Finally, because regional freight carriers are also typically smaller organizations, shippers may have more negotiating power when it comes to discounted rates or lowered accessorial fees. Regional carriers are likely to be more flexible in order to compete with the huge volume of business that national carriers naturally pull from the market. 

For some shippers' needs, bigger isn't always better. There are very specific instances when a business may benefit from utilizing a smaller regional or local carrier network over a national carrier company. The first thing to consider is whether your customer base is located in a targeted geographic area. If you're doing business with local customers, and factors like price, service level, and timeliness are important, a regional freight carrier may streamline your shipping procedures. To learn more about the benefits of using a regional carrier, and whether they are right for you, call 800-599-2902 or get a free quote today.  

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