Your Guide to the 2019 FedEx and UPS Rate Increases

December 17, 2018 at 3:46 PMLeah Palnik
your guide to the 2019 FedEx and UPS rate increases

FedEx and UPS rates will be going up in 2019, and it’s more important than ever that shippers know how to mitigate the impact to their business. In November, FedEx announced that its small package rates will increase an average of 4.9% as of January 7, 2019. In December, only a few weeks before the change is set to take place on the 26th, UPS announced the same average increase.

If you’re thinking that means you can budget your costs to go up by 4.9%, you are sorely mistaken. There is a lot to unpack with these rate increases. For starters, some services are increasing at a higher rate than others – meaning that depending on the services you commonly use, your costs could go up significantly more than the announced average.

Other factors determine how much more you will pay for your FedEx and UPS shipments in 2019. You will need to look at the new rates based on your package characteristics, as well as how far your shipments are being sent. Here are the released rates for 2019:

FedEx and UPS surcharges
The announced average increase only covers the base rates. You’ll also need to consider what fees and surcharges apply to your shipments. Many of these surcharges are increasing quite a bit. Here are the announced changes:

One surcharge to take note of is the Third-Party Billing fee. A couple years ago, UPS introduced this in response to the growing popularity of drop shipping. Right now if you use third-party billing, you will incur a charge of 2.5% of total cost. Beginning December 26, UPS will be increasing that charge to 4.5%. FedEx is leaving its Third-Party Billing charge unchanged at 2.5% for 2019. This is just one example of why it’s important to evaluate the changes that come out each year from UPS and FedEx. One small difference can have a huge impact on your costs.

The most costly surcharges continue to be those that apply to shipments that qualify as “Unauthorized” or “Over Maximum Limits.” If you send a package with UPS that weighs more than 150 lbs., exceeds 108 inches in length, or exceeds a total of 165 inches in length and girth combined, you’ll be looking at a $850 charge on top of your base rate. That same package will incur a $675 charge if you ship it with FedEx. Either way, you’ll be paying a huge premium to ship larger, bulkier packages.

Peak season strategies
It’s also important to note that ahead of the 2019 general rate increase (GRI), FedEx and UPS both announced peak season surcharges. For those larger packages, the carriers applied additional surcharges during the busiest time of year. A huge difference between the two, however, was an additional charge on residential shipments. UPS applied a $0.28 peak surcharge on residential ground shipments, while FedEx decided that for the second year in a row, it wouldn’t follow suit. If you’re a retailer that delivers a large amount of customer orders over the holidays, that charge can add up fast.

Trends in the small package industry
If you zoom out on all of these changes from FedEx and UPS, there are a few insights to glean.

  1. FedEx and UPS tend to institute similar pricing strategies. The carriers have a habit of matching each other when announcing average increases, and when one introduces a new charge or a different way to account for something, the other tends to do the same down the road. That doesn’t mean that it doesn’t matter which carrier you use. Instead, it’s important to stay on top of the changes and evaluate your options on a regular basis so you’re always using the service that works best for your budget.
  2. Many of the changes over the years have been put in place as a result of the ecommerce boom. With more shipments coming from online orders, comes more trends that strain the carriers’ networks. For example, ecommerce has led to more residential deliveries and more deliveries of oversized packages. That’s why you’ll see the carriers making changes that help them to recoup some of the costs associated with these trends.
  3. Both carriers have been making changes throughout the year, instead of just during the GRI. For example, FedEx and UPS both increased their Additional Handling surcharges ahead of the new year – in September and July respectively. When UPS first introduced peak surcharges for residential ground shipments, that was also done outside of the annual announcement. This just highlights how important it is for shippers to stay aware throughout the year.

We know you don’t want to comb through every tedious page of the 2019 FedEx and UPS service guides and compare them to your current rates. That’s why we did the leg work for you. In our free white paper, we break down where you’ll find the highest increases and explain some of the complicated changes you need to be aware of. If you’re looking for ways to offset the rate increases, we can also help with that. If you’re a member of one of the many associations we work with, you can get access to exclusive discounts. Contact us and we’ll find a way to help you save.

Your Guide to the 2019 FedEx and UPS Rate Increases

6 Surprising Advantages of Rail Transport Over Road Transport

December 13, 2018 at 9:16 AMLeah Palnik
6 surprising advantages of rail

Road transport is a very popular mode for freight, but for certain loads, the advantages of railways are too great to ignore. If your shipment is moving over 1,000 miles and isn’t time sensitive, rail transport can be a very efficient solution for your supply chain.

Here are some advantages of rail transport over road transport to consider:

  1. Rail transport can be cost effective. Shippers who convert long-haul freight from road to rail, can save 10-40%. Rail has lower fuel costs compared to road transport, especially when shipping a high volume of freight. Rail also has less costs associated with drivers and typically has better costs for drop trailer programs.
  2. Shipping via train is more environmentally friendly. Trains burn less fuel per ton mile than trucks. According to the Association of American Railroads (AAR), freight railroads can move one ton of freight an average of 479 miles on a single gallon of fuel. On top of that, using rail transport over road transport can lower greenhouse gas emissions by 75%.
  3. Trains are capable of hauling large loads. Trains can handle high volumes of freight. In fact, one double-stacked train can hold approximately the same amount as 280 trucks. This can be very beneficial for shippers with large loads.
  4. Railways are reliable. Railways have standardized transit schedules and don’t share their tracks with the public like trucks do with the road. For that reason, trains aren’t hindered by traffic and weather the same way trucks are.
  5. Rail freight can be efficient. For many types of loads, the average transit time is comparable to that of road transport. While rail shouldn’t be used for time-sensitive shipments, it can provide very similar transit times for longer hauls.
  6. Rail options provide you with access to capacity. OTR capacity is tight. The driver shortage, HOS restrictions, and current market demand can make it hard for shippers to find a truck when they need it without paying an arm and a leg. Since rail transport can be more efficient and doesn’t have the same kind of limitations, this is a great way for shippers to find capacity.

Rail as part of an intermodal strategy
Using rail transport as part of an intermodal strategy can have significant benefits. Intermodal is the use of two or more modes for transporting freight. When combining road and rail, trains are used for the long-haul portion of the shipment. Trucks are used to bring freight from the origin to the terminal and then from the terminal to the destination, which is referred to as drayage. Commodities that are typically moved via intermodal rail include electronics, clothes, machinery, plastics, and lumber.

Limitations of rail
While rail transport can be a great solution for many shippers, it isn’t for every load. There are some limitations to consider. First, the shipper and the consignee should be no more than 100-200 miles from a major metro area that has a terminal. Also, there aren’t guaranteed transit times, so it’s not recommended for time-sensitive loads.

You also want to make sure that you aren’t trying to ship prohibited or restricted articles. Prohibited articles include commodities that are dangerous or could damage equipment, like carbon black, raw animal hides, and used auto parts that leak. Restricted commodities require permission ahead of time and may be constrained to certain lanes or subject to different pricing.

In addition, it’s incredibly important that you are using the proper block and brace techniques. Intermodal containers experience a great deal of movement during transit that could cause damages. If you haven’t blocked and braced your freight by rail standards you run the risk of a denied claim.

Is rail transport right for your freight?
If you think intermodal transportation may be a good fit for your freight, the team at PartnerShip is ready to help. We'll find the solution that best fit your needs, so you can ship smarter. Contact us today to find out what your options are and see how much you could save.

contact us today!

2018 Holiday Shipping Schedule

November 9, 2018 at 8:56 AMLeah Palnik
Holiday Shipping Schedule 2018

There’s no way around it – shipping during the holiday season can get hectic. Whether you’re sending packages to customers or shipping out several pallets, the holidays can affect your transit times. To help you prepare for this busy time of year we’ve compiled your important need-to-know dates for some common carriers.

Holiday schedules for LTL freight carriers
Before you schedule your shipment, make sure to account for the days your selected carrier will be closed. Below are some common freight carriers and their holiday schedules for the 2018 season:

  • YRC Freight will be closed November 22-23, December 24-25, and December 31-January 1
  • XPO Logistics will be closed November 22-23, December 24-25, and January 1
  • Old Dominion will be closed November 22, December 24-25, and January 1; it will have limited operations on November 23 and December 31
  • New Penn will be closed November 22-23, December 24-25, and January 1; it will have limited operations on December 31
  • Pitt Ohio will be closed November 22-23, December 24-25, and January 1
  • Reddaway will be closed November 22-23, December 24-25, and January 1
  • Dayton Freight will be closed November 22-23, December 24-25, and January 1
  • R&L Carriers will be closed November 22, December 25, and January 1
  • Estes will be closed November 22-23, December 24-25, and January 1
  • Central Transport will be closed November 22, December 25-26, and January 1; it will have limited operations November 23, December 24, and December 31
  • Roadrunner will be closed November 22-23, December 24-25, and January 1
  • Clear Lane Freight Systems will be closed November 22-23 and December 24-25
  • FedEx Freight will be closed November 22-23 and December 24-25, and January 1; it will have limited operations December 31
  • Holland will be closed November 22-23 and December 24-25, and January 1
  • New England Motor Freight will be closed November 22-23 and December 24-25, and January 1
  • AAA Cooper will be closed November 22-23 and December 24-25, and January 1
  • ArcBest will be closed November 22-23, December 24-25, and January 1
  • UPS Freight will be closed November 22-23, December 24-25, and January 1

Important dates to note for your small package shipments
As for your small package shipments, make sure you’re aware of the peak surcharges that UPS and FedEx will be applying. UPS will be instituting an additional surcharge on residential ground shipments from November 18 through December 1 and then again December 16-22. Unlike its competitor, FedEx won’t be applying a similar peak surcharge. Both carriers, however, are charging more for larger packages or packages that necessitate additional handling. FedEx will apply these surcharges November 19-December 24, while UPS will be applying these charges November 18-December 22.

For your FedEx small package shipments, check out the last days to ship, review important information on the money-back guarantee, and refer to the 2018 holiday schedule below.

FedEx Holiday Schedule 2018

PartnerShip holiday schedule
If you need help with a last minute shipment during this busy time of year or have any questions, we're here to help. Keep in mind, PartnerShip will be closed so we can enjoy time with our families November 22-23, December 24-25, and January 1. From our families to yours – happy holidays!

Just-In-Time Delivery Options You Need to Consider

November 7, 2018 at 10:46 AMLeah Palnik
just-in-time delivery options you need to consider

If you have freight that can’t afford to wait, just-in-time delivery can sometimes feel like a gamble. Will the carrier deliver on time? Will my freight be safe? Will it cost me an arm and a leg? Knowing your options before the need arises can make all the difference.

Many carriers will offer expedited or guaranteed LTL services. These vary based on transit times and delivery windows. Guaranteed services come at an additional fee and you can typically choose between morning delivery or end-of-day delivery. Expedited LTL freight services help to shave off one or two days from standard transit times. However, sometimes hot loads require even more assurances.

For just-in-time delivery, dedicated moves by sprinter vans, cargo vans, or straight trucks can often be a smarter option. Cargo vans and sprinter vans are great for moving smaller loads for short distance trips. Straight trucks are ideal for medium sized loads and can handle longer trips. Since these vehicles vary from your traditional tractor trailer, it’s important to be aware of their capacity:

  • Cargo van capacity is typically 2,000-5,000 lbs. and up to 8 ft.
  • Sprinter van capacity is typically 3,000-5,000 lbs. and up to 12 ft.
  • Straight truck capacity is typically up to 12,500 lbs. and up to 22 ft.

Advantages of expedited ground services
Capacity is just one way that dedicated vans and straight trucks differ from your typical freight services. Expedited ground services have some significant advantages for just-in-time deliveries:

  • You can get time definite delivery. Pick-up and delivery times are more accurate because your load is moved on a dedicated vehicle and often served by team drivers.
  • Your freight has less risk of damage. Your freight stays on the same vehicle the entire way and doesn’t share the space with other freight.
  • Your freight moves fast. Because of their size, vans and straight trucks can be loaded faster, can move faster, and aren’t limited by the same amount of restrictions that tractor trailers are.

Are these services right for your just-in-time freight?
Like any freight service, just-in-time delivery options aren’t a one size fits all. There are some types of loads that are better candidates for dedicated vans than others. Here are some factors to consider:

  • Size. What are the dimensions of your freight and how much does it weigh? Since sprinter vans and cargo vans are smaller than your typical tractor trailer, you need to know if your load will fit.
  • Destination. How far does your freight need to travel? Cargo vans and sprinter vans are better suited for shorter distance trips. Are you delivering to an area that’s hard to reach? Due to their small size and few restrictions, vans have better accessibility.
  • Delivery requirements. Do you have a specific delivery window you need to meet or do you have some flexibility? Shipping in a van will give you more control since the move is dedicated.
  • Risk of damage. Are you shipping fragile cargo? If safety is a significant concern, using a dedicated van can give you peace-of-mind. There are less stops and less freight on the vehicle to worry about shifting and impacting your cargo.

Shipments for manufacturing businesses are often good candidates for just-in-time delivery with a cargo van, a sprinter van, or a straight truck. With production efficiency being extremely important, these services can help keep an assembly line running by delivering a replacement part or new equipment exactly when they are needed. Manufacturers can also save a significant amount of money by having raw materials delivered right when they are needed instead of dealing with storage costs.

Another situation where dedicated vans or straight trucks can solve just-in-time delivery needs is with trade show shipments. Convention centers often have specific receiving times and restrictions that can result in hefty fees if not followed. Even worse, if your exhibit materials don’t arrive in time for the show or show up damaged, it can be hard to recover. No exhibitor wants to make an investment into a trade show only to be left without their booth materials.

Just-in-time delivery carriers and brokers
If you think you could benefit from just-in-time delivery with a dedicated van or straight truck, you need to work with the right partners. Not all freight brokers have relationships with carriers that have cargo vans, sprinter vans, or straight trucks in their fleet. Working with a broker that can’t offer these services can limit your options – and when you have a hot load, there’s nothing worse.

The carriers your broker works with also need to be reliable and extremely responsive. Make sure your broker has standards in place that require the carriers they work with to have a history of meeting delivery expectations.

Overall, a quality freight broker should help you ship smarter. When you work with our team at PartnerShip, you only have to make one call for all of your freight needs. We understand the urgency of your just-in-time freight and we know how to find you the delivery options that are best suited for your needs and budget. Contact us today for a free quote.


Not using the right service for your freight is just one thing that could be hurting your bottom line. Download our free white paper to make sure you're not making any of these common mistakes!
The 5 Most Common Freight Shipping Mistakes

Introducing Our PartnerPets!

August 27, 2018 at 9:59 AMLeah Palnik

For many of us at PartnerShip, we work hard during the day and love coming home to our furry companions in the evenings. These PartnerPets brighten up our lives and probably know us better than anyone else. If you’ve ever been curious about the people you talk to over the phone or email, here’s your chance. Get to know our team by meeting the pets who love us!

Bailey Bear Patterson

Bailey Bear Patterson
Her top skill: Sitting and giving paw
Who loves having her a part of the family: Paula Patterson, Account Representative


Riley Shields

Riley “Monkey” Shields
Fun fact: He thinks he’s a person
Who he makes laugh on a daily basis: Mandy Shields, Truckload Customer Service Representative


Duke and Annabelle Mounts

Duke and Annabelle Mounts
Duke’s not-so-hidden talent: flooding the bathroom and waking everyone up at 3am
Annabelle’s party trick: managing to be everywhere at once
Who puts up with their shenanigans: Alayna Mounts, Account Representative


Freya O'Hara

Freya O’Hara
Special ability: climbing up slides and running into things
Who puts food in the bowl: Alecia O’Hara, Account Representative


Onyx Samples

Onyx Samples
Superpower: napping and getting into things he’s not supposed to
Who dresses him in awesome costumes: Dean Samples, Account Representative


Yoshi and Tobias Deming

Yoshi and Tobias Deming
Why Yoshi’s a good boy: He finds discarded human snacks on every single daily walk
The superior skill of Tobias: Beating his brother to the punch while playing fetch - too slow, Yosh!
Who lets them live their best life: Jen Deming, Marketing Associate


Gigi Korhely

Gigi “the Gig” Korhely
Her strengths: letting every dog have it when they walk past the house…from the comfort of the window
Who takes her to the beauty salon on the regular: Keith Korhely, Senior Program Manager


Mocha Magazzine

Mocha Magazzine
The top skill on her resume: picking her own beans in the garden
Who she turned into a dog person: Karen Magazzine, Revenue Services Representative


Ginger Arnold

Ginger Arnold
Favorite hobbies: conducting squirrel patrol watch and eating earplugs
Who lets her hog the couch: Josh Arnold, Programmer Analyst


Tucker, Channing, and Kiwi Laudato

Tucker, Channing, and Kiwi Laudato
Channing’s top skill: squirrel chasing
Tucker’s bff: Channing, of course
Kiwi’s amazing ability: to look like a dinosaur
Who keeps the family together: Vince Laudato, Customer Service Representative


Tyler Kuntz

Tyler Kuntz
What he does in his free time: talk (yes, talk!) to the birds that visit the feeders outside the window
Who still feeds him even though he tries to trip him: Aaron Kuntz, Account Representative


Andy McManamon

Andy McManamon
How he likes to find trouble: jumping over the fence to swim with the ducks in the neighbor’s pond
Who lets him believe he’s a lap dog even though he’s 65lbs: Tim McManamon, Freight Brokerage Sales Manager


Smokey Gamble

Smokey Gamble
How he let’s his hair down: playing catch and going for rides in the car
Who rewards him for not making “accidents” in his cage: Justin Gamble, Senior Account Representative


Meiko Palnik

Meiko Palnik
Redeeming quality: being the official bug spotter (and sometimes killer) in the house
Who puts up with him tearing up the furniture: Leah Palnik, Marketing Manager


Buster Brown Hardman

Buster Brown Hardman
Why he’s known as a Romeo: he loves snuggling, giving kisses, and sleeping in front of the fireplace
Who hooks him up with the best tuna fish: Nicole Hardman, Senior Carrier Procurement Representative and Brian Hardman, Senior Account Representative


Hank Bowers

Hank Bowers
Guilty pleasures: sniffing everything, chewing rawhides, and watching Mr. Ed
Who makes sure he’s always ready to celebrate: Joe Bowers, Account Representative


Zion and Marley Horst

Zion and Marley Horst
Most important duty: Keeping watch for the local wildlife and singing the songs of their people
Who rescued them 7 years ago: Allison Horst, Senior Carrier Procurement Representative


Harry Pupper Maye

Harry Pupper Maye
What he’s really good at: forcing you to pet and love him
Who is more than happy to pet and love on him: Brenden Maye, Account Representative


Charlie Rinaldi

Charlie Rinaldi
What makes him happy: eating everything he’s not supposed to and going for rides
Who lets him take the wheel on the RZR: Andrya Rinaldi, Account Representative


Canelo Villela

Canelo Villela
How he likes to roll: by playing with the kids and neighborhood police officers at the park
Who loves this little escape artist: Damaris Villela, Customer Service Representative


Jovie and Bella Hammersmith

Jovie and Bella Hammersmith
How Jovie likes to chill: with her friends Sammy the squirrel, Manny the chipmunk, and Hopper the rabbit
How Bella spends her free time: by cuddling and being a love bug
Who spoils them: Jennifer Hammersmith, Customer Service Manager


Chunky Diamond

Chunky Diamond
Super skill: Destroying chew-toys
Who thinks he’s really good at cuddling: Tyler Diamond, Account Representative


Leroy Brown Schramm

Leroy Brown Schramm
Claim to fame: running up to 13 miles with his mom and stealing food off of dinner plates
Who is happy to put a roof over his head: Laura Schramm, Office Manager


Frankie, Bobbi, Ozzie, Cribbs, Dudley, and Jonah Centa

The “Centa Farm” – Frankie, Bobbi, Ozzie, Cribbs, Dudley, and Jonah Centa
Cribbs’ special skills: swatting at the dogs, drinking water from human cups, and being the namesake of the great Joshua Cribbs
Bobbi’s (very) hidden talent: rarely being seen by anyone
Ozzie’s favorite way to get around: in Dudley’s mouth
Dudley’s M.O.: counter surfing for food and stealing hotdogs from children
Jonah’s claim to fame: being the bark-o-matic 5,000 because he barks at anything and everything
Frankie’s prize winning talent: being a prize from the county fair and being named after the great Francisco Lindor
Who had the genius idea to name them all after Cleveland sports legends: Harry Centa, Senior Program Manager

Looking for a rewarding career that will make your pet proud? We're hiring!
join our team!

What to Expect With Over Dimensional Freight

August 24, 2018 at 11:58 AMLeah Palnik
Over dimensional freight: what to expect

When you’re preparing an over dimensional freight shipment, the number of restrictions and factors to account for can be overwhelming. One mistake can have costly consequences to your bottom line and transit times. However, knowing what to expect when you’re getting your shipment ready will help ensure everything goes smoothly.

One of the reasons it can be challenging to set up an over dimensional shipment is that each state has different legal requirements you have to adhere to. However, there are some common categories that many states have restrictions around:

  • Travel time. Many states will restrict the hours that your carrier can be on the road when transporting an over dimensional shipment. Generally, travel is restricted to daylight hours (one hour before sunrise until one hour after sunset), which reduces your available time on the road, especially in the winter months when the days are shorter. Some states may also restrict transport during rush hour for major cities, depending on the size of your shipment. You will also need to factor in if you will be shipping close to a major holiday when travel can be restricted both the day of and the day before.
  • Escort vehicles. Depending on the states your cargo is traveling through, your carrier may be required to use escort vehicles, also known as pilot vehicles. These vehicles serve a couple different purposes. They help to warn other vehicles on the road and they can check for low hanging wires, bridges, or any other road hazard the truck may encounter. How many escort vehicles you need in the front and/or back will be determined by your shipment characteristics and the states it’s traveling through.
  • Route surveys. Safety is a major concern when shipping over dimensional freight. Route surveys are required by some states for certain oversized shipments to help ensure the safety of the load, to prevent public property damage, and protect motorists. During route surveys, a pilot vehicle will go through the exact shipment route proposed to document any potential obstructions or hazards like tight turns or low bridges.
  • Safety equipment. Depending on your shipment dimensions, flags and lights may be required on the tractor, trailer, and/or the escort vehicles. This helps with visibility for other motorists on the road. You will typically see red or orange flags and amber lights used.

When shipping over dimensional freight you not only have to follow the state restrictions, but it’s also a requirement to obtain permits from each state your freight passes through. The permits will include information like your shipment dimensions, what you’re shipping, and the origin and destination. It will also spell out the conditions that need to be met as far as safety equipment, escort vehicles, and restricted times. It’s important to note that there are fees for the permits which vary depending on the state.

While there is a lot that goes into planning for an over dimensional load, much of the responsibility falls on the carrier. The carrier creates the suggested route and submits it to the states to obtain the needed permits. The carrier also makes the arrangements for escort vehicles and other safety equipment.

As the shipper, your main concern should be providing the most detailed information possible so everything with the planning process goes smoothly. When requesting a quote, first and foremost, you will need to have your dimensions. The length, width, height, and weight will all determine what kind of state requirements you will need to follow. You will also want to provide information about your commodity including the model number, the serial number, value, and description. On top of that, it’s a good idea to include information about how it will be loaded and unloaded.

Due to the nature of over dimensional freight, you will need to get a quote at least two weeks prior to when you need the load moved. All of the pieces that contribute to moving an over dimensional load take time to secure. These restrictions also affect your transits times. You can estimate 50 miles per hour to travel, but add a cushion to account for route changes or other unforeseen issues.

You can also expect to pay more than what you would with a typical load, with line items for permits, escorts, and an over dimensional surcharge. All of these extra steps take time and cost money, so your quote will be calculated accordingly.

Working with a freight broker is the best way to ensure you’re receiving a competitive price for your shipment. A quality broker will know what questions to ask so that everything is done efficiently and every factor that could affect your shipment is accounted for ahead of time. Contact PartnerShip for your next over dimensional load!

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FedEx and UPS Peak Season Surcharges: The Important Differences

August 9, 2018 at 2:09 PMLeah Palnik
FedEx and UPS Peak Surcharges for the 2018 Holiday Season

FedEx recently announced that for the second year in a row, it won’t be applying a peak season surcharge on residential shipments. This is good news for retailers who expect a significant amount of e-commerce orders over the 2018 holiday season.

UPS, however, will be instituting a surcharge on residential ground shipments from November 18 through December 1 and then again from December 16 through December 22. UPS will be charging $0.28 per package for most residential shipments using ground services. For UPS air services the fees are as high as $0.99 per package.

UPS delivered around 700 million packages during the 2017 holiday season – a huge jump compared to the rest of the year. Ordering online has become so commonplace and easy for shoppers, and the carriers are feeling the effects. The increase in volume over the holidays drove UPS to introduce this new peak surcharge for the first time last year.

Typically UPS and FedEx have comparable rates and surcharges and will mimic each other’s changes, so this is a notable distinction between the two small package giants.

FedEx is sending a clear message to shippers. “FedEx delivers possibilities every day for millions of small- and medium-sized businesses,” said Raj Subramaniam, executive vice president and chief marketing and communications officer at FedEx Corp. “We are demonstrating our support for these loyal customers during this critical timeframe by not adding additional residential peak surcharges, except for situations where the shipments are oversized, unauthorized or necessitate additional handling.”

It’s important to note that both carriers are implementing charges on larger packages. With the rise of e-commerce, people are ordering items online that they would’ve exclusively purchased in-store in the past – including televisions and appliances. FedEx and UPS have made several adjustments to account for these trends, including a pushback on larger packages. Heavy and bulky packages don’t move through their automated systems and require more attention. FedEx and UPS are putting a price tag on that loss in efficiency and shippers need to stay aware.

FedEx will apply peak surcharges for larger packages from November 19 through December 24:

  • $3.20 per package for shipments that necessitate additional handling
  • $27.50 per package for shipments that qualify as oversize
  • $150.00 per package for shipments that qualify as unauthorized

UPS will apply peak surcharges for larger packages from November 18 through December 22:

  • $3.15 per package for shipments that necessitate additional handling
  • $26.20 per package for shipments that qualify as large
  • $165.00 per package for shipments that qualify as over maximum limits

If you’re not careful, the surcharges can add up fast. These peak surcharges are in addition to the already existing surcharges that apply to larger packages, and any others that may apply including delivery area and residential surcharges.

Retailers should take note of these peak season changes to ensure a profitable 2018 holiday season. If you see a significant amount of online orders over the holidays and ship with UPS, you’ll be paying an extra $0.28 per package, which will eat into your bottom line.

To prepare, take a look at what you shipped last year around the holidays and determine a forecast for this season. From there you’ll be able to see how much more you can expect to spend during the designated peak season. You may find that switching from UPS to FedEx for the busiest time of the year will provide you with a decent cost savings. Depending on the billable weight of your shipment and the destination, the base rate could be lower with FedEx – compounding the savings during peak season. It’s worth evaluating the options, when the holiday season can make or break your year.

There are many factors to consider when deciding how to ship your small package shipments. You need an expert on your side. ParterShip 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 explain some of the complicated changes you need to be aware of.

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Keys to Success for Vendor Compliance and Inbound Shipping

July 10, 2018 at 1:49 PMLeah Palnik
Keys to Success for Vendor Compliance and Inbound Shipping

For many retailers, obtaining vendor compliance and maintaining smooth inbound shipping operations may seem like a tall order. However, with the right planning and follow through, it is achievable. By following these keys to success, you’ll be on your way to reducing your freight costs, avoiding chargeback issues, and creating efficient operations.

Developing an effective routing guide
The very foundation of achieving vendor compliance is developing an effective routing guide. Routing guides provide shipping instructions to your vendors that help you gain control of your inbound shipments. They often include modes and carriers for specific lanes, as well as rate and service requirements.

In order to create routings that are best for your business, you’ll need to consider several factors. Price, transit time, and reliability are all important when selecting a carrier and determining how to have your product shipped. For different services and weight breaks, you want to designate a carrier that provides you with the best rate and can deliver your product in the time you need.

Conducting an in-depth analysis of your inbound shipments can be time-consuming but necessary when determining your routing instructions. This is where working with the right freight broker can make a huge difference. The broker you work with should provide inbound management services that help determine the routings that will be best for your business and will create the routing guide for you – saving you valuable time.

Maintaining good relationships with your vendors
For smooth inbound shipping, you want to have a good rapport with your vendors. Like any other relationship, communication is key. For example, when you send your routing guide out to your vendors, it’s a good idea to include a request for confirmation. However, you won’t always receive one. If that’s the case, following up and opening the lines of communication will be your best bet to ensure vendor compliance.

If your vendors aren’t using your routing instructions after receiving your routing guide, you’ll need to follow up with a call or email. When you have a good relationship with your vendor, you’ll have the right point-of-contact and will be able to resolve the issue quickly. If not, you could have a harder time achieving vendor compliance.

Maintaining a relationship with your vendors can be difficult and time-consuming. This is another area where working with the right freight broker can make a difference. When selecting a freight broker, ask about experience in your industry. Quality freight brokers familiar with your industry will already have an established relationship with many of your vendors, which will help with compliance efforts.

Perfecting your order forecasting
Managing your inventory can be challenging. But the advantages of forecasting and planning your orders ahead of time are too great to ignore. When you don’t plan ahead and then need your product within a shorter time-frame, you will have to rely on costly expedited services. Spending the time up front to make sure your orders are placed with ample time will be better than spending the extra money in the long-run.

Also, with more lead time, you’ll be in a better position to handle any issues that arise. For example, if your shipment gets lost or damaged in transit and you need your product immediately, you’ll be out of luck. In that event, you’ll need to file a freight claim which doesn’t always guarantee compensation and is often a lengthy process.

If you’re not able to place your orders ahead of time, it’s a good idea to consider freight insurance. Unlike relying on carrier liability coverage, you won’t have to worry about if the carrier is found liable or not and often times you’ll get paid out much faster – making it easier to resume operations as normal.

Conducting regular reviews for improvements
Once you do have a routing guide in place and have vendor compliance, you can’t just set it and forget it. It’s best to review your routing instructions periodically so that you’re always getting the best rates and service possible.

You can choose to set aside a specific time each year to do a review. But if you make any changes throughout the year with your orders or any other factor that affects your shipments, you’ll want to take that time to evaluate and update if necessary.

It’s also important to stay on top of carrier rate increases, accessorial changes, and NMFC updates. These kinds of changes can have a significant effect on your freight costs and you'll want to make sure that you fully understand how these changes will affect your specific shipments. For example, carriers announce general rate increases every year and will present an average increase. If you simply use that average to judge how your costs will be affected, your budget will most likely be off. The increases vary greatly across the board depending on a number of characteristics, so it's important to evaluate them based on your specific shipments. 

Partnering with the right freight broker
The keys to vendor compliance and inbound shipping management are easy to master when you work with the right freight partner. PartnerShip can help conduct a complete inbound shipping analysis, create a routing guide, and send routings on your behalf for vendor compliance. Contact us today to get started, or download our free white paper to learn more about managing your inbound shipments!

Download the free white paper: 4 Steps to Gain Control of Your Inbound Shipping

Factors Contributing to the 2018 LTL Rate Increases

June 19, 2018 at 11:17 AMLeah Palnik
Factors Contributing to the 2018 LTL Rate Increases

LTL freight rate increases are unavoidable. And in this current tight capacity market, it’s no surprise that many carriers have taken their general rate increases (GRIs) earlier than in previous years. Just like in the truckload market, costs are been driven up by the ELD mandate, the driver shortage, and hours of service (HOS) rules. Coupled with the strong U.S. economy, freight demand is surging and straining the market.

Along with the tight capacity market, trends towards shorter supply chains and smaller, lighter loads have led to more demand for LTL services. The rise of ecommerce has played a large role in the increased demand. Products that consumers never would have dreamed of ordering online years ago, like furniture, have now become commonplace for ecommerce. However, these types of shipments are less desirable for carriers. With more deliveries being made to more remote areas without backhaul opportunities, the costs are significantly higher for them.

With the driver shortage, it is easier for carriers to find and recruit LTL drivers, compared to truckload. They are more appealing jobs, with shorter lengths of hauls and less time away from home and families. However, there are fewer LTL carriers entering the market when compared to truckload. The complex networks of terminals that LTL carriers rely on are much more difficult to establish, making it a significant barrier to entry.

With all of those factors to contend with, LTL carriers have been announcing their GRIs throughout the first half of 2018.

Rates aren’t the only thing on the rise. Many carriers are charging more for accessorials like inside delivery or Saturday delivery. Carriers are also implementing tools and technology that help them determine what types of freight are profitable and which ones aren’t – and charging accordingly. Dimensional pricing is one example of this. Many carriers have invested in dimensioning machines, which calculate the amount of space a shipment will need in the truck, leading to less dependency on the National Motor Freight Classification (NMFC) system.

As with any announced rate increases, the important thing to remember is that the averages may not reflect the actual increases you’ll see in your freight bills. Depending on the lane and shipment characteristics like weight or class, the increase could be significantly more.

To determine what you can expect and what you can do to offset the rising costs, start by taking a look at the increases for your typical lanes. That will give you a better idea of what cost increases you can budget for, rather than relying solely on the reported averages. Then determine ways to reduce those costs. Consider working with a freight broker, to benefit from their industry expertise. A quality broker will have the knowledge to help you navigate the market and will be able to find solutions that can help to reduce your costs.

PartnerShip can help you ship smarter. For a competitive rate on your next LTL shipment, get a free quote!

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Local Girl Scout Troop Brings An Exciting New Game to Their School

June 7, 2018 at 1:32 PMLeah Palnik
Gaga Pit Opening 2018

If you’ve never heard of gaga ball, you’re not alone. But to millions of kids around the world, it’s the hottest game on the playground right now. The game, played in an octagon pit, is simple. Similar to dodgeball, the goal is to be the last one standing and players use a soft foam ball to knock out their opponents.

Gaga ball is a fast paced game that keeps kids on their toes. Once in the pit, players hit the ball with one open or closed hand without throwing, carrying, or dribbling. Players are out if the ball hits them below the knee at any time.

The best part of the game is how inclusive it is. You don’t have to be the tallest, the strongest, or the most athletic to join in the fun. The games also have a fast turnover so everyone can have a turn, and even after getting knocked out, it’s not long before you can jump back in again.

That’s why when a local Girl Scout troop contacted PartnerShip about helping to sponsor their gaga pit project, it was an easy decision. Supporting our community is important to us and providing a place where kids of all abilities can come together is a great way to do it.

The Girl Scouts of Troop 168 in Westlake, Ohio saw a need in their community for something that would bring kids together and make everyone feel included. Girl Scout Tina Cirincione said she first learned of gaga ball from camp and knew it would be perfect for their Silver Award Project. From there Tina and her troop members began developing a plan. They researched possible locations and reached out to members of the community to put their plan into action.

By working with the city of Westlake and Westlake City Schools, Troop 168 selected the grounds of Dover Intermediate School to build their gaga pit. This is the first gaga pit in Westlake – a huge accomplishment for the girls and their school.

On a beautiful spring day, the gaga pit officially opened. At the site on Dover Intermediate School grounds, the Girl Scout troop invited everyone who supported their project to join them as they celebrated this addition to their community. Members of Westlake City Schools, Mayor Dennis M. Clough, and other community leaders joined the troop to celebrate.

The members of Girl Scout Troop 168 were beaming with pride while Mayor Clough congratulated them on a job well done. Then it was time to jump in! The girls played the inaugural game and it was immediately apparent how much fun they were having. Even the adults played a round, proving it truly is a game for everyone to enjoy.

Now that the gaga pit is open to the community and in a location that makes it easily accessible to kids in the area, it’s sure to attract a lot of activity. There aren’t many games that bring kids together the way that gaga ball does. Most organized sports require a certain skill level or will separate boys and girls. The way gaga ball is played allows for kids of all different backgrounds and skills to play together. Sports play a very important role in developing self-esteem, improving social skills, and staying active so having a game that can include kids that may otherwise miss out is a huge win.

Girl Scout Troop 168 did an amazing job on this project. From gathering support, to making a plan and building the gaga pit, they put in a great deal of hard work. What Girl Scout Troop 168 did for their peers can serve as a lesson for all of us. Supporting your community in a small way can make a big difference.