Navigating the Potential UPS Strike: How to Protect Your Supply Chain

May 25, 2023 at 2:09 PMLeah Palnik
Navigating the Potential UPS Strike: How to Protect Your Supply Chain

In today's interconnected business landscape, small businesses heavily rely on efficient and reliable shipping services to maintain their supply chains and meet customer demands. With the potential UPS strike looming, it is crucial for small businesses to understand the implications and take proactive measures to safeguard their operations. In this article, we’ll delve into the details of the potential UPS strike, why small businesses should care, and provide actionable steps to protect their supply chains during this uncertain period.

Understanding the UPS Strike

Negotiations between UPS and the Teamsters, the union representing UPS employees, are ongoing and have reached a critical point. While it is uncertain whether a strike will occur, it is essential for small businesses to be prepared for such a scenario. The Teamsters and UPS have until August 1 to reach an agreement. The impact of a UPS strike can be significant, disrupting supply chains and causing delays in deliveries, which can have far-reaching consequences for businesses of all sizes.

Implications for Small Businesses:

  • Disrupted Operations: Small businesses heavily reliant on UPS services may face disruptions in their day-to-day operations, such as delays in receiving inventory, shipping products to customers, and meeting delivery deadlines. This can lead to dissatisfied customers, decreased revenue, and potential damage to the brand reputation.

  • Increased Costs: In the event of a UPS strike, small businesses might be forced to seek alternative shipping solutions, which could come at a higher price. Exploring other shipping carrier options and securing competitive pricing now will be a necessary lifeline.

  • Supply Chain Bottlenecks: A UPS strike can cause a ripple effect throughout the entire supply chain. Suppliers, manufacturers, and distributors relying on UPS may experience delays in receiving raw materials or components, leading to production slowdowns and potential stock shortages. Small businesses need to proactively address these bottlenecks to mitigate the impact on their operations.

Protecting Your Supply Chain:

  • Diversify Shipping Partners: Small businesses should consider partnering with alternative shipping providers such as FedEx, DHL, or regional carriers. Research and negotiate discounted rates with these providers well in advance, ensuring they can handle the business's shipping volume during a UPS strike.

  • Plan Ahead: Developing contingency plans and forecasting potential disruptions is crucial. Small businesses should communicate with suppliers, manufacturers, and customers, informing them of potential delays and seeking alternative arrangements if necessary. Implementing buffer inventory or safety stock can help mitigate supply chain disruptions during this period.

  • Explore Local Sourcing: In case of a UPS strike, small businesses can explore local sourcing options for raw materials or components. This reduces the reliance on long-distance shipping and minimizes the impact of any potential disruptions in the transportation network.

  • Optimize Inventory Management: Efficient inventory management becomes paramount during uncertain times. Small businesses should analyze their inventory levels, streamline their procurement processes, and leverage technology solutions to track and manage inventory in real-time. This ensures the availability of essential products and reduces the risk of stockouts during a UPS strike.

  • Communicate with Customers: Proactive and transparent communication with customers is crucial during periods of disruption. Small businesses should keep customers informed about potential delays, set realistic expectations, and provide updates throughout the process. Customer loyalty can be maintained by offering alternative shipping options or discounts during this challenging period.

  • Control Your Costs: One effective way for small businesses to safeguard their supply chains and keep costs under control during a potential UPS strike is by exploring discounted shipping options. PartnerShip works with over 130 associations to provide members with substantial discounts on FedEx services through the FedEx Advantage program. By signing up for the program, businesses can mitigate the financial impact of a UPS strike while maintaining reliable shipping services. These discounts can help offset any potential increase in shipping costs and ensure that businesses can continue to fulfill orders and meet customer expectations without compromising their bottom line. Contact our team to find out if you qualify for the FedEx discounts and how to get started.

From Disruption to Resilience

While the potential UPS strike poses challenges for small businesses, it also presents an opportunity to reassess and strengthen their supply chain strategies. By diversifying shipping partners, planning ahead, exploring local sourcing options, optimizing inventory management, and maintaining open communication with customers, small businesses can navigate through potential disruptions and emerge stronger. Being prepared for contingencies ensures business continuity and safeguards the customer experience, even during challenging times.

Your Essential Guide to the 2023 FedEx and UPS Rate Increases

December 6, 2022 at 11:35 AMLeah Palnik
The essential guide to the 2023 FedEx and UPS Rate Increases

FedEx and UPS will be increasing their rates by an average of 6.9% in 2023. That’s a heavy statement for a couple of reasons. First, this is the highest General Rate Increase (GRI) the carriers have taken in recent years. And second, your actual shipping costs will likely go up more than 6.9% in the new year. Oof. Unpacking the new changes is complicated, but essential if you want to understand how your costs will be affected and what you can do about it.

Here's your guide to the FedEx and UPS rate increases for 2023. Jump to:

A look back at the FedEx and UPS GRIs 

FedEx and UPS have a long history of mirroring each other’s pricing. They typically announce the same GRI and appear to have very similar pricing strategies. Bottom line, published rates aren’t a major differentiator between the two carriers.

For 2023, both FedEx and UPS are pointing fingers at inflation as a contributing factor to the higher-than-usual rate increase. 2022 already saw an uptick with a 5.9% GRI, thanks to all of the supply chain disruptions and surges in demand that resulted from the pandemic. For several years prior to that, both carriers had been raising their rates annually by an average of 4.9%.

Some important quick facts about the new FedEx and UPS rates:

  • The new FedEx rates take effect on January 3, 2023, while the UPS rates take effect a week earlier on December 27, 2022.
  • The 6.9% average doesn’t take surcharges into account - many of which are increasing by more than 6.9%.
  • How much your costs actually go up in 2023 will depend on several different factors. The services you use, your shipment dimensions and weight, and how far your shipments are traveling all have an effect.

Important changes

So you already understand that FedEx and UPS rates are going up in the new year. What does that look like exactly? First, you'll want to review the released service guide previews: 

If all of those tables and numbers are making your head spin, you're not alone. But there are some key takeaways. Let’s take a look at a few of the general observations from the base rate changes:

  • Across all services and weight breaks, longer zones are getting hit with higher increases than shorter zones. Many of those increases are higher than the announced average. 
  • For Ground services, many of the rates for shorter zones are lower than the 6.9% average increase.
  • For each service, the rate increases are similar across most weight breaks. Zones are the biggest difference-makers this year. 
  • For the 3 Day services, you'll see a higher increase from FedEx than UPS. However, the actual rates are comparable. That is because UPS took a larger increase with this service the previous year. 
  • Both FedEx and UPS have increased their Ground Minimum charge to $10.10

When you are reviewing your shipping costs, you can’t look at the base rates alone. Surcharge fees often make up a significant chunk of the amount you end up paying. Here are a few noteworthy surcharge updates:

  • Fees for larger, more difficult to move packages continue to rise to hefty prices. You could be paying an extra $1,150 for a shipment that qualifies for the Unauthorized Packages fee by FedEx or the Over Maximum Limits fee by UPS.Common FedEx and UPS Surcharges
  • Both carriers are increasing the late payment fee from 6% to 8%.
  • FedEx created a Remote Delivery Surcharge. Almost 4,000 zips will now incur a $13.25 fee. UPS originally introduced a fee for this in January 2022.
  • Many common surcharges are increasing, with a significant amount increasing by more than 6.9%.Common FedEx and UPS Surcharges

There are also a couple of other changes that are important to be aware of:

  • UPS announced that it will be renaming “peak surcharges” to “demand surcharges”. Several years ago FedEx and UPS started implementing these fees to address the increased demand the holiday season brings. Then, the pandemic hit. Both carriers have struggled to meet the surge in demand amid all of the supply chain disruptions and decided to use peak surcharges in response. The decision by UPS to rebrand these surcharges signals that it is viewing them slightly differently. Instead of implementing fees based on seasonal predictability, “demand surcharges” suggests usage anytime there is an uptick in demand. In short, they’re likely here to stay.
  • The list of zip codes for zones is changing. Depending on where you’re shipping, you may have to pay based on a longer zone than before. It’s changes like these that make budgeting for your annual cost increase very challenging.

How the FedEx and UPS rate changes will affect your costs in 2023

You can’t take the announcement of a 6.9% increase at face value, unfortunately. You’ll need to determine what services you use the most, how far your shipments travel on average, and how much of your invoice charges can be attributed to fees.

Many shippers will see their costs go up over the announced 6.9% average. With that in mind, let’s look a few factors that could put you at risk for higher-than-average cost increases:

  • If you’re shipping larger packages or your packages require special handling. For the past several years, FedEx and UPS have been raising these fees at an alarming rate. Any shipment they can’t run through their normal systems costs them more time and money, and these fees are a way to discourage those types of shipments from entering their networks.
  • If you ship a higher percentage of residential shipments. Residential shipments cost the carriers more because they require more stops and are a less efficient use of their driver’s time. Residential fees continue to climb because of this.
  • If you ship a lot of low density packages. The pricing structure that FedEx and UPS have put in place punishes lighter shipments that take up a lot of space. The carriers prefer denser packages that take up less space because they’re able to fit more packages on their delivery vehicles.
  • If a high percentage of your shipments go to longer zones. It’s always been true that the further your package travels, the more expensive the rate. This year that’s especially true. Longer zones are seeing more increases above the announced average than shorter zones.

What you can do to mitigate the effects of the FedEx and UPS rate increases

  • Right-size your packaging. While FedEx and UPS rates are based on weight, that’s not actually the whole story. If your dimensional weight is higher than the actual weight, your package will be rated using the dimensional weight - meaning you’ll be paying more. This makes any excess space within your package extra costly. Focus on packaging that allows space for the items you’re shipping and the necessary cushioning and nothing more.
  • DIM Weight Calculation
  • Consider opening or using a new distribution center. Shipments with the longest distance to travel cost you the most every year. But in 2023, this will be even more important as the longest zones are seeing the highest increases. Getting closer to your customers could be a great strategy for keeping those costs down.
  • Take advantage of discounts available to you. Many trade associations and chambers of commerce will offer FedEx or UPS discounts to their members. Oftentimes the annual cost savings from those discounts more than make up for the cost of joining. PartnerShip works with over 130 groups to provide their members with discounts on FedEx services. Contact our team to find out if you qualify.

Wrapping your head around all of the changes for 2023 FedEx and UPS rates can be challenging. But, using this guide to understand what's behind the announced average and published service guides is a good first step. Use this information to properly budget for the new year and set up any mitigation tactics that work best for your business.   

4 Questions You Must Ask About Your Freight Broker's Carrier Network

November 9, 2022 at 11:50 AMJen Deming

When it comes to the carriers that can move your freight, "more is better", right? While that may be true for some, the quality of your partner carriers may be more valuable than quantity. If you're looking to add new carriers to the mix by working with a freight broker, make sure to ask the big questions to determine if their network is right for your needs.

Freight Carrier Closures for the 2022 Holiday Season

November 3, 2022 at 1:47 PMJen Deming
2022 Freight Carrier Closures

As we near the end of 2022, it’s crucial to plan ahead for shipping through the holiday season.  Freight demand is starting to show signs of decreasing but continues to strain available carrier capacity. As a result, transit times are still a bit unpredictable. 

Planning your shipping schedule during the final months of the year will be extra important. To avoid extra stress, take note of when your carriers will be closed during the holidays. 

Freight carrier closures

  • Saia LTL Freight – will be closed November 24 - 25, December 23 - 26, and January 2.
  • YRC Freight – will be closed November 24 – 25, December 24 – 26, 31, and January 2.
  • XPO Logistics – will be closed November 24 – 25, December 23 – 26, and January 2.
  • ArcBest – will be closed November 24 – 25, December 24 – 25.
  • R+L Carriers – will be closed November 24 - 25, December 24 - 26, and January 2
  • Estes – will be closed November 24 – 25, December 23 – 26, and January 2.
  • Dayton Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
  • Pitt Ohio – will be closed November 24 – 25, December 23 – 26, and January 2.
  • AAA Cooper – will be closed November 24 – 25, December 23 – 26, and January 2.
  • TForce Freight – will be closed November 24 – 25, December 23 – 26, and January 2.

Avoid being left out in the cold this holiday season

Freight shipping during peak shipping months can be extra-challenging, but you’re not alone. With over 30 years of holiday seasons under our belt, the freight experts at PartnerShip can help you ship smarter. 

Please note that our office will be closed November 25-26, December 26, and January 2 so that we can celebrate with our families. Happy Holidays!

FedEx and UPS Holiday Shipping Deadlines for 2022

October 21, 2022 at 9:10 AMLeah Palnik
2021 Holiday Shipping Deadlines for FedEx and UPS

As you prepare your store for the influx of orders that come with the holiday season, you’re going to want to keep an eye on the shipping deadlines. Both FedEx and UPS have announced the last dates you can ship your orders and make it in time for a Christmas delivery.

It’s important to note these deadlines because demand surges this time of year. The carriers' networks are already strained, and it’s only going to get worse the closer we get to the holidays. To keep your customers happy and set the right expectations, we recommend clearly communicating the shipping cutoff dates and adding in extra days in case of delays.

FedEx has published a complete visual list of the last days to ship. Here are some highlights for domestic shipments:

  • December 8 for FedEx Ground Economy
  • December 14 for FedEx Ground and FedEx Home Delivery
  • December 20 for FedEx Express Saver
  • December 21 for FedEx 2Day and 2Day AM
  • December 22 for FO, PO, SO, and Extra Hours
  • December 23 for FedEx Same Day

UPS has also created a list of the last days to ship for Christmas delivery. Unfortunately, one thing that is missing is a specific cutoff date for Ground shipments. You will need to get a quote on the UPS website instead. For domestic UPS air shipments, the dates are as follows:

  • December 20 for UPS 3 Day Select
  • December 21 for UPS 2nd Day Air
  • December 22 for UPS Next Day Air services

It’s also important to note that service guarantees are currently suspended for both FedEx and UPS ground services. It's also suspended for select air/express services. The main takeaway? You’ll want to encourage your customers to order early and do what you can to add in extra days when setting delivery expectations.

If you're looking for any additional guidance or need a way to lower your small package costs, PartnerShip can help. Contact our team today.

Why Carriers Hate Difficult Freight and How to Fix It

February 18, 2022 at 2:49 PMJen Deming
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Have you ever thought about whether your LTL freight loads are worthwhile for the carrier? Your freight shipments must be worth the amount of effort that’s invested in moving them. If the payoff isn’t there, your loads will be regarded as “difficult freight”.  This can lead to declined loads, infrequent pick-ups, or a tense relationship with your carrier. To get your freight prioritized, the first step is determining whether you have difficult freight, then taking the steps needed to become a shipper of choice. 

Reason 1: Your pick-up or delivery location is tough to access

One way to determine whether your freight is cringeworthy can be as simple as walking through the door of your business and scanning the surrounding lot. Ask yourself, are my freight pick-ups a pain to complete? Maybe you don’t even have a lot, but your business is located on a side street or an alley in the city. A standard LTL dry van being dispatched by the carrier is 52 feet long, which definitely takes skill to maneuver safely. If your business location is in a challenging place, such as a cramped area that restricts maneuverability or doesn’t have a dock, pick-up is tough for the driver to complete. 

On the other hand, maybe you have the space to maneuver, but it’s such a rural location that the carrier only services the area infrequently. If you’re in an isolated region that doesn’t have many other local businesses moving freight, the work to payoff ratio is pretty unbalanced. Either way, carriers have a term for these hard-to-reach locations. High-traffic metropolitan areas, remote construction zones, and extremely rural regions all fall within the definition of limited access.

The best thing you can do to avoid this particular pitfall is to create as much flexibility as possible for the carrier. You might not be able to move your business, but if the physical location of your pick-up has some structural challenges, you need to communicate that to the carrier beforehand. Informing the carrier allows them to plan for the proper equipment, such as dispatching a smaller box truck for arrival. If you can swing it with your warehouse team, consider shipping to or from a freight terminal, rather than your business. Busy freight terminals are located in desirable geographic areas that you know the carrier will visit regularly. This helps ensure your shipment gets moving and will spare you extra limited access fees. 

Reason 2: Your freight is a prohibited commodity

Want to know another reason that your shipment may be marked as “difficult freight”? The commodity you are shipping may be prohibited by the carrier. This is usually due to liability, governmental regulations, or company policy. The act of prohibiting certain items exists for two main reasons: 

High risk/high value - These types of products can be difficult to put an exact value on, or may be easily damaged or stolen. Commodities include bank bills, credit cards, gold or precious stones, currency, original artwork, furs, or other high-value items. Your chosen carrier may be willing to accept certain items, but you must prove you have the appropriate insurance coverage.  

Regulated – These shipments may be excluded due to government regulation or may be hazardous in nature. This may also include perishable items that require controlled storage requirements. Items in this category include aerosols, chemicals, assembled guns, alcohol, combustible materials, hazardous materials, and live plants and animals.

So, since this type of “difficult freight” can include so many different commodities, what can you do? Your first goal should be to learn just how your carrier views these products. Evaluate your carrier’s terms and conditions  before you even start planning your pick-up. Restricted or prohibited items will be listed there, as well as any liability and claims information. Inspections regularly occur during transit, so if you aren’t sure if you’re safe, call the carrier and find out their policy.

If you are consistently moving these types of risky shipments, make sure that you are working with carriers that are properly certified. Many carriers specialize in these types of loads, so you can ensure your shipments are moving safely and legally. For some types of cargo there may be state-mandated regulations, as in the case of transporting alcohol. Be sure to have the proper permits and to adhere to the necessary policies. Any type of shipment that has restrictions will likely have very specific packaging requirements and requisite paperwork.  

Reason 3: Your warehouse hours don’t mesh with the carrier

Maybe the location of your business isn’t the thing preventing a carrier’s arrival, but your facility’s operating hours are what create further problems. Due to the nature of certain establishments, arrival times may be heavily policed or limited. Places like schools, prisons, or storage facilities often have restricted hours for arrival and loading – and sometimes they’re after a carrier’s business hours. 

All a driver wants to do is arrive onsite, get loaded quickly, and then to get back on the road. Having to work around odd hours can complicate the daily schedule. To make matters worse, some locations may require an appointment for arrival. If you have a small loading window that requires the driver to stick to a very fixed schedule, this is going to present some issues. Traffic issues or detours can throw off an entire day’s work. If a driver arrives just short of the appointment time, the shipment may need to be put back on the board for the next day.

Create flexibility in your loading hours whenever possible. If you must require delivery appointments, make sure your loading team is efficient and organized so that you don’t run over. Allowing weekend arrivals, extended hours for pick-ups, and having a team “on call” can greatly reduce the stress a driver will experience and boost the chances the carrier will work with you again.

Reason 4: Your reputation proceeds you 

When you are auditing carriers, and measuring up how well they’re working out for you, realize that carriers are doing the same thing. With capacity as limited as it is, freight carriers want to work with customers who have their shipping processes down pat and are pleasant to do business with. If you are anything but that, they will take their business elsewhere.

One major disruption for carriers is the subject of detention. Carriers usually allot two hours for loading, and any time it takes over that is considered detention. Detention holds up drivers, wasting time and preventing them from moving on to the next load. It’s pricey too, as most carriers will pass on a detention fee to offenders. Keep in mind, drivers are not going to help you load your cargo. Some may assist, but be warned, that will rack up some hefty fees too.

In order to avoid these fees and stay in good graces with the carrier, you need to have a well-trained and efficient warehouse team that also has the proper loading equipment. If you don’t have a dock for loading, that’s okay, but you should have a forklift or another alternative ready and working at pick-up. 

Be helpful and accommodating to the driver. Amenities like accessible parking options, a comfortable resting area, and food and coffee will be greatly appreciated by the driver. Keep in mind, when it comes to difficult freight, your reputation is the one factor you can truly control. Becoming a shipper of choice takes planning and a little bit of thoughtfulness, but it goes a long way in helping the carrier look forward to your loads.

Reason 5: Your business has above average claim submissions 

It probably seems pretty obvious, but if you’re submitting a lot of claims, the carrier is going to be wary of your cargo. Freight claims cause headaches for everyone involved. While the burden of proof is on the shipper to prove carrier negligence, claims submissions take a lot of time, research, and possibly loss of revenue for the carrier. Whether you win the claim or not, damage and loss claims mean the carrier will think twice about moving your shipments.

If your company has a history of damages, your freight carrier is going to evaluate a few risk factors. It may be possible that you are shipping extraordinarily fragile, or perishable, commodities that create a lot of risk. For example, a landscaping business shipping live plants may want to use LTL services for smaller freight loads. While possible, doing so is hazardous. Any delays in shipments or extra handling may cause an above-average risk to the integrity of the product. 

The other issue may be with your packaging. A business that is shipping built furniture may experience increased risk of damage to their product. Custom crating your product can help avoid some damages, but the risk may still be too high, and standard carriers may decline to move your loads at all.

If you are shipping any sort of fragile or high-risk shipment, your first step should be to perfect your packaging procedures. It may be costly to invest in custom packaging, but using standard pallets and shrink wrap is not going to be enough to protect your freight. It’s more important to consider whether specialty shipping services may be the right option for your cargo. White glove shipping services can be pricey, but they prioritize safe handling and security. Refrigerated options or even using dedicated truckload services will limit the handling of your product, and may speed up transit as an added benefit.

Reason 6: Seasonality is shifting carrier priorities

During certain times of the year, there are huge spikes in available freight shipments for carriers to move. Depending on the industry, these periods vary by region and season, and sometimes there may be some cross-over. Some examples include produce season in places like Florida, the Midwest, and California, construction season in the spring, or nationwide during the winter holiday season. Because there are so many available loads to choose from, carriers will prioritize the loads that, you guessed it, have the highest payoff for minimal effort.

If you’re shipping during these busy seasons, you need to be flexible. LTL rates will go up and transit times will increase. You should always be practical about your budget, but consider the long-term goal. It’s not the time to tighten the belt on your budget during busy seasons - aim to lower costs year-round so that you have room when you need it. Since transit times will be longer, consolidating loads whenever possible will decrease your overall risk for late deliveries. Expanding your pool of carriers by working with a freight broker will increase the likelihood your shipment gets moved. As always, make your freight as appealing as possible so that when carriers are frazzled by the seasonal onslaught, they can count on your shipments to be fast and easy.

Make difficult freight a thing of the past

Nobody wants to be seen as a “problem shipper”, but the good news is that with time, and a little foresight, you can turn the situation around. It all starts with putting yourself in the carrier’s shoes. Would you want to work with your business? It’s your responsibility to make your cargo desirable, and encourage a strong relationship with your carrier. PartnerShip can help, by guiding your business to make the right choices for your loads, and connecting you with the right carriers who want to move your freight.


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2021 Year-End Planning for Your FedEx and UPS Shipments

November 15, 2021 at 9:43 AMLeah Palnik
2021 Year-End Planning for Your FedEx and UPS Shipments

The end of the year is usually pretty hectic for a lot of businesses, but 2021 is proving to be one for the books. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.

Ship early
We can’t stress this enough. Delays are becoming more common and will likely get worse the closer we get to Christmas. The FedEx and UPS networks are very strained right now. Fueled by the pandemic and all of its ripple effects, demand for parcel services is at an all-time high. Both FedEx and UPS have suspended service guarantees for their ground services and some of their air/express services, which means you can’t leave things up to chance. Ship early and build in plenty of extra time where you can so you don’t run into major disruptions.

Review holiday shipping deadlines
For retailers, this is especially important. As customers place their orders for holiday gifts, they’ll want to know that they’ll receive them before the big day. FedEx and UPS have released their shipping deadlines, so make sure to review them and plan accordingly. That way you’ll be able to manage expectations appropriately and keep your customers happy.

Prepare for the 2022 rate increases
Don’t sleep on the fact that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers announced that they will be increasing their rates by an average of 5.9%. It’s tempting to take that announced average and budget for your costs to go up by that much, but unfortunately it’s not that simple.

How much your rates will go up in the new year will largely depend on which services you use, your package characteristics, and where you’re shipping to/from. That 5.9% average also doesn’t account for surcharges which can drive up your costs even more. If this all sounds like a major analysis that you don’t have the time to conduct, you’re not alone. That’s why we’ve reviewed the updated rate charts for you. Download our free guide to see a full analysis of what you can expect.

The Essential Guide to the 2022 FedEx and UPS Rate Increases.

Types of LTL Carriers and When You Need Them

November 10, 2021 at 11:04 AMJen Deming

Working with a less-than-truckload (LTL) carrier is a great way to move your larger, palletized loads efficiently and often with some cost-saving benefits when compared to other services. But, even within the LTL service category, there are a few different business models - each offering a different mix of security, speed, and cost. Understanding the benefits of each will help you choose what works best for your business.


Types of LTL Carriers Infographic.

Freight Carrier Closures for the 2021 Holiday Season

November 3, 2021 at 4:25 PMJen Deming
2021 Freight Carrier Closures Blog

2021 has been another challenging year. The freight market continues to be oversaturated with available loads while simultaneously suffering from a capacity crisis. Transit times are delayed, so to ensure timely delivery (you can't count on eight tiny reindeer), you must plan ahead and create a flexible shipping schedule. You'll also need to be mindful of carrier closure dates. We've compiled a list to keep on hand when you're executing your holiday shipping strategy.

Freight carrier closures

  • Saia LTL Freight - will be closed November 25-26, December 23-24, and December 31.
  • YRC Freight – will be closed November 25-26, December 24, and December 31.
  • XPO Logistics – will be closed November 25-26, December 23-24, and December 31.
  • ArcBest – will be closed November 25-26, and December 24.
  • R+L Carriers – will be closed November 25-26, December 24, and December 31.
  • Estes – will be closed November 25-26, and December 24.
  • Dayton Freight – will be closed November 25-26, December 23-24, and December 31.
  • PittOhio – will be closed November 25-26, December 23-24, and December 31.
  • AAA Cooper – will be closed November 25-26, December 23-24, and December 31.
  • TForce Freight - will be closed November 25-26, December 23-24, and December 31.

Santa has his elves, you have a team at PartnerShip

With extra challenges facing your business this year, keep in mind that the freight experts at PartnerShip can help you successfully manage your holiday shipping. Our office will be closed November 25-26, December 24, and December 31 so that we can spend time with our families. Happy Holidays!

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