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.

No one likes surprise fees. Unfortunately, there are quite a few extra costs that are likely to pop up with LTL freight. Known as accessorial fees, these charges cover a wide variety of extra services and can add up fast. In this post, we'll answer the question, "what are accessorial charges?" and provide a list of common LTL accessorial fees to help you better understand and manage your freight costs.

What are accessorial charges?
Accessorial charges are fees for services performed by the carrier that are considered to be beyond the standard pickup and delivery. These fees make up just one part of your freight rate, but can be challenging to manage. Understanding which accessorial charges you can plan for and which ones you can avoid is necessary if you want to keep your freight costs in check.

What are some common LTL accessorial charges?
You might be wondering what is considered an extra service, and you’re not alone. We’ve compiled some common LTL accessorial fees so you know what to look out for.

• Lift Gate Service
  When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift gate is a platform at the back of certain trucks that can raise and lower a shipment from the ground to the truck. Having this feature on trucks requires additional investment by an LTL carrier, hence the additional fee.


• Residential Service
  Carriers define a business zone as a location that opens and closes to the public at set times every day. If you are a business located in a residential zone (among personal homes or dwellings), or are shipping to or from a residence, the carrier may charge an additional residential fee due to complexity in navigating these non-business areas.


• Collect On Delivery (COD)
  A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery. The additional administration required for this type of shipment necessitates an additional fee to cover the carrier's cost.
  


• Oversized Freight
  Shipments containing articles greater than or equal to twelve feet in length. Since these shipments take up more floor space on the trailer, additional fees often apply.
  


• Fuel Surcharge
  An extra charge imposed by the carriers due to the excessive costs for diesel gas. The charge is a percentage that is normally based upon the Diesel Fuel Index by the U.S. Energy Information Administration.


• Inside Pick Up/Inside Delivery
  If the driver is required to go inside (beyond the front door or loading dock) to pick up or deliver your shipment, instead of remaining at the dock or truck, additional fees will be charged because of the additional driver time needed for this service.


• Advance Notification
  This fee is charged when the carrier is required to notify the consignee before making a delivery.


• Limited Access Pickup or Delivery
  This fee covers the additional costs required to make pickups or deliveries at locations with limited access such as schools, military bases, prisons, or government buildings.


• Reweigh and Reclassification
  Since weight and freight class determine shipment base rates, carriers want to make sure the information on the BOL is accurate. If the carrier inspects a shipment and it does not match what was listed, they will charge this fee along with the difference.

Navigating the many nuances of LTL freight accessorial fees to determine which services you need and which you can avoid will help ensure the most cost effective price. Carriers generally publish a document called the "Rules Tariff 100" which provides a list of current accessorial services and fees. The shipping experts at PartnerShip are well versed in these documents and are happy to help with any questions you may have. 

Want a more in-depth look into freight accessorial fees and how to avoid or offset the added costs? Check out our free white paper! 

If you’ve ever wondered who keeps the wheels in motion at PartnerShip, look no further than Taresa Gannon. As a Senior Key Account Specialist, she prioritizes caring for our customers above all else. She may quote, schedule, and track shipments, but her role is so much more than that. It’s her reliable communication and problem solving skills that make her invaluable to the shippers who work with her.

Something you should know about Taresa
She loves dogs! Taresa and her husband James have a full house with 5 of their own. She even hopes to open a dog rescue shelter someday.

Expert advice
Taresa’s favorite part of her job is all of the challenges. And she’s an expert at navigating them. We asked her to share some things she’s learned along the way.

• What industry trends are you seeing that you think shippers should be aware of?
  Production delays, staff shortage/labor issues, and lack of warehouse space/scheduling availability.
• If you could give customers one piece of advice for smart shipping, what would it be?
  Keep an eye on demand, plan ahead, and entertain flexible options such as drop trailer service.

How to apply these tips to your freight
It’s clear - planning is essential if you want everything to go smoothly with your freight. Wondering where to start? A quality freight broker can help. If you’re curious how, we have a couple of great resources:

• Five Important Reasons You Should Be Using a Freight Broker
• Five Freight Broker Benefits You Can't Afford to Pass Up

Taresa also brings up a good point about entertaining flexible options. There are several ways you can do that, and if you need some ideas, we have you covered:

• Drop trailer programs
• cross-docking vs transloading
• Partial truckload vs volume LTL
• Consolidating freight
• Regional freight carriers

If you’re ready to discuss your options with a freight expert like Taresa, contact us today. 

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
• Important changes
• How the FedEx and UPS rate changes will affect your costs in 2023
• What you can do to mitigate the effects of the FedEx and UPS rate increases

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: 

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.

Above all else, at PartnerShip we value the relationships with our customers and partners. Keeping them happy and ensuring their freight is managed properly is the backbone of what we do. Our Association Program Manager, Dillon, is a prime example of that. He is the main point of contact for our college bookstore associations and is the go-to resource for many of our customers - a role that is as unique as he is.

About Dillon
If you get the chance to speak with Dillon, be sure to congratulate him - he recently got engaged to his longtime girlfriend! They have lived together in their beachfront apartment in California for 6 years and enjoy everything the oceanside life offers. When he’s not working, you can find him enjoying a nice meal with his fiancé, playing beach volleyball, or biking down the beach path.

Expert advice
Dillon has earned his chops as a Certified Transportation Broker (CTB) and sits on the board for the California Association of College Stores (CACS). Between that and his 7 years of experience at PartnerShip, he’s in a solid position to help our customers ship smarter. We asked him to share some advice.

• What industry trends are you seeing that you think shippers should be aware of?
  The most obvious industry trend that I can identify is transit times being affected by the demand on the system. You can easily avoid this issue by taking extra time to communicate with your broker, specifically on how early you should order your product and what your realistic expectation for delivery should be.


• If you could give customers one piece of advice for smart shipping, what would it be?
  My major piece of advice for customers is to communicate with your logistics broker. Many problems can be avoided or instantly fixed when a customer and their broker communicate to understand any shipping issues that may arise.

Taking it a step further
Communication is key in Dillon’s eyes and for good reason. A quality freight broker can be your advocate when issues arise with carriers, you’re dealing with deadlines, or have unique needs. But that open dialogue is essential for your broker to do their job right. Curious about the benefits of working with a broker? We’ve got you covered:

• 5 Freight Broker Benefits You Can’t Afford to Pass Up 
• How to Select a Freight Broker: Top 8 Factors Shippers Should Consider 

Dillon also hits the nail on the head when it comes to challenges with transit times. If you want to understand what’s happening in the freight industry and how to tackle the resulting issues, there are a couple resources you might find useful:

• The Current State of Freight: What You Can Expect 
• 6 Surefire Ways You Can Overcome Freight Capacity Challenges 

Without question, having someone like Dillon on your side to manage your freight is essential these days. If you’re interested in finding out more how our team can help, contact us today. 

If you’ve ever wanted to know more about the people who help keep your freight moving, you’re in the right place. It takes creative problem solving and years of experience to expertly navigate the world of shipping. At PartnerShip, we’re proud of our team members who use their expertise to help our customers ship smarter. One person who fits that bill is Amanda Bixler.

Get to know Amanda
As the Customer Service Manager, Amanda helps her team and our customers ship smarter by staying current with issues in the industry and sharing what she learns. Assisting her team with handling difficult customer situations, creating shipment quotes, scheduling shipments, and running shipping analyses are all in a day’s work for her.

Outside of work
You can’t keep Amanda away from the water. When she’s not kayaking, you can find her walking the beaches to collect Lake Erie beach glass for making jewelry. She also loves spending time with her family. She’s happily married to her husband of 10 years, Trevor. She also has two daughters - Autumn and Alexis, and two Grandbabies - Lillyana and Xavier.

Some shipping wisdom
Amanda has been with PartnerShip for 7 years, and her team is often the first call when a shipping issue arises. As a Certified Transportation Broker (CTB) she is well versed in what to look out for and how to keep your shipments running smoothly. We asked her for her thoughts on a couple of key questions.

• What industry trends are you seeing that you think shippers should be aware of?
  The demand for shipping continues to increase daily. There is more freight than there are drivers to move it. The freight is often being put on the rail resulting in longer transit times. I proactively inform my customers of these potential issues so there aren't any surprises.


• If you could give customers one piece of advice for smart shipping, what would it be?
  I often tell our customers to package their freight in a manner in which it can be identified easily in the event it is lost/damaged.

How to apply these tips to your freight
Amanda’s insights touch on one of the most pressing issues in LTL freight shipping today - longer, more unpredictable transit times. This has become an unfortunate reality of the business. While much of that is out of your control, the best thing you can do is plan ahead and work with a quality broker so you have an advocate in your corner. If transit times have been a pain point for you recently, we have some resources you may be interested in:

• The Top 4 Reasons Your Freight is Late 
• The Current State of the Freight Industry and What You Can Expect 
• 5 Freight Broker Benefits You Can’t Afford to Pass Up 

Another reality of the business that Amanda mentions is dealing with missing and damaged freight. If a carrier loses or damages your freight while in transit, it can feel like so much is out of your control. However, you can take some precautionary measures and educate yourself ahead of time on the actions to take if you need to file a claim. To get you started, check out these resources:

• Everything You Need to Know About Freight Claims 
• Logistics and Legal Rights: Where Do Shippers Stand? 
• Your Guide to Proper Packaging 

The benefits of working with a knowledgeable team are undeniable. If you could use a freight expert on your side, contact us today.

You might be familiar with PartnerShip and how our organization helps customers ship smarter. But we’re more than a freight brokerage business. The people behind PartnerShip and our collective expertise are truly what make the difference. First up, we’d like to introduce you to Dante Donofrio.

How you might know Dante
As one of our Senior Account Representatives, Dante helps our customers move their freight. He works hard to collect all the important info about your shipment so he can match it with the best carrier for the job, at the most competitive price. Understanding all your specific needs - from required equipment to receiving hours - he leaves no detail unchecked to ensure everything goes smoothly.

Some shipping wisdom
Dante has been with PartnerShip for over 4 years and has witnessed first-hand what shippers are dealing with in these times of disrupted supply chains and unprecedented freight demand. We asked him a couple questions to share what he’s learned.

• What industry trends are you seeing that you think shippers should be aware of?
  In the less-than-truckload (LTL) market, if you've shipped recently then you know that transit times are not what they were. Carriers are more often than not, NOT able to make their estimated arrival times and, unfortunately, there's not discounts for late shipments. Also, carriers are taking every opportunity to re-weigh, re-measure and even re-class your freight so it just comes back to accuracy and making sure you have the right classification, weight and dimensions. Our team does a great job of helping with freight class so that surprise rate increases from reclassification can be avoided.


• If you could give customers one piece of advice for smart shipping, what would it be?
  Try to tell us more than we want to know about your freight. Small details can be important so don't be afraid of giving too much information. I love thorough customers who give us lots of information. That said, if you don't do that, be prepared for me to come at you with lots of questions but it's all in the name of getting your freight there and controlling cost!

Something you may not know about Dante
Dante played guitar in a high school garage rock band but quit when he was working and attending night school. After a bit of a hiatus, he took it up again about 5 years ago and now even has a collection of guitars hanging up on his office wall. When asked if his life was made into a movie what the title would be, Dante says it would be “Shipper Guitar Hero”.

Your freight
With all the current challenges in the shipping industry, working with an expert like Dante is imperative. Reach out to our team to start controlling your freight costs and ship smarter. In the meantime, check out these resources that help you determine what details are important when you're preparing your shipment, like Dante advises:

• [Tool] Find Your Freight Class
• [Article] Why It's Never a Good Idea to Fudge Your Freight Dimensions
• [Article] For Good Measure: How to Avoid Freight Reweighs

It’s been hard to miss the high gas prices at the pump and the headlines about the rising cost of crude oil. Not only does this affect the average American driver, but this also has a large impact on the drivers moving our freight. In fact, the national average for on-highway diesel fuel has shot up to the highest it’s ever been since the U.S. Energy Information Administration started tracking the prices in 1994.

The cost of doing business just got a lot more expensive for trucking companies, and that will be reflected in your freight rates. We’re currently seeing fuel surcharges as high as 42% with some of our carriers. While it’s a hard pill to swallow, this is something to keep in mind and budget for.

As for how long you can expect fuel surcharges to be high, that’s hard to say. Many experts note that even when oil prices start to go back down, gas and diesel prices aren’t likely to fall as quickly as they’ve risen.

To learn more about the record high diesel prices, check out this article on Overdrive.

If you're curious about how oil prices drive the cost of gasoline and diesel, check out this segment from Marketplace.

It’s more important than ever to work with a freight broker. Our team is available to help you find the best rate for your freight and help you navigate through logistics challenges. Contact us to consult with one of our shipping experts.

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.