Your Essential Guide to the 2025 FedEx and UPS Rate Increases

October 25, 2024 at 11:23 AMLeah Palnik
The essential guide to the 2024 FedEx and UPS Rate Increases

Shipping in 2025 is about to get more expensive. FedEx and UPS are both increasing their rates by an average of 5.9%. But don’t let that number fool you — your actual costs will likely climb even higher. With UPS leading the charge on December 23, and FedEx following two weeks later, these increases will have a significant impact for shippers. The real challenge lies in the hidden complexities behind the changes. It’s essential to understand them so you know 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 2025. 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 general rate increase (GRI) and appear to have very similar pricing strategies. Bottom line, the published rates aren’t a major differentiator between the two carriers.

For several years, FedEx and UPS held steady at a 4.9% increase. Then the pandemic shook things up in 2022, driving the GRI up to 5.9%. The following year, in 2023, it climbed even higher to 6.9%, as demand surges stretched shipping networks to their limits. Demand began to soften going into 2024, which brought the GRI back down. The 5.9% GRI for 2025 matches last year’s and isn’t surprising, given the current market conditions. 

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

  • The new FedEx rates take effect on January 6, 2025, while the UPS rates take effect two weeks earlier on December 23, 2024. Notably, UPS is raising their rates sooner, capturing more shipments moving through the end of peak season. 
  • The 5.9% average doesn’t take surcharges into account - many of which are increasing by more than 5.9%.
  • How much your costs actually go up in 2025 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 for 2025

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 have you overwhelmed, 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:

  • Two-day air services are increasing higher than 5.9%, while next-day and overnight services are closer to the announced average.
  • Ground commercial services are seeing higher increases for those packages being delivered longer distances. On the flip side, those packages traveling to shorter zones will see increases more in line with the average.
  • The rates for lighter-weight packages using ground commercial services are rising less than 5.9%. Conversely, heavier packages using ground commercial services are seeing increases that exceed the average.

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. These fees are already very costly, and in 2025 they're rising significantly higher than the GRI and other surcharges.
  • UPS is introducing a new surcharge for customers who pay by credit card. This addition goes into effect ahead of the GRI on October 26, 2024. The charge is 2% of the total amount paid via credit card. 
  • Many other common surcharges are increasing by more than the 5.9% GRI, including Delivery Area and Residential surcharges.

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

  • The minimum charge for both carriers is increasing from $10.70 to $11.32. If you have discounts on your account, this heads-up is for you. Even if your discount would bring you to a base rate that's lower, you're stuck paying the minimum of $11.32 instead.   
  • Effective October 26, 2024, UPS is changing the list of zip codes for zones and the Delivery Area Surcharge. Depending on where you’re shipping, you may have to pay based on a longer zone than before. On top of that, you could get hit with a Delivery Area Surcharge on a shipment that it didn’t apply to in the past. It’s changes like these that make budgeting for your annual cost increase very challenging.
  • Effective January 27, 2025, UPS is updating how it calculates its Large Package Surcharge and Additional Handling Charge. The Large Package Surcharge will be determined using revised calculations based on either length, weight, or cubic volume. For the Additional Handling Charge, it will be determined according to cubic volume and be subject to a 40 lb minimum billable weight. The changes could drive your costs up, and cause some shipments to qualify for those surcharges when they haven't in the past.

How the FedEx and UPS rate changes will affect your costs in 2025

You can’t take the announcement of a 5.9% increase at face value, unfortunately. You’ll need to determine which services you use the most, how far your shipments travel on average, and how much of your invoice charges can be attributed to fees.

Most shippers will see their costs go up over the announced 5.9% average. With that in mind, let’s look at 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. 2025 is no different. 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’re relying on Express/Air services for two-day deliveries. The carriers are raising rates more aggressively on Express/Air services for two-day deliveries. Why? More and more, consumers expect to be able to order something and receive it within two days. FedEx and UPS know this is important to shippers who want to keep their customers happy. 
  • If you ship a lot of Ground packages that travel further distances. Not only are these base rates increasing higher than average, but if you are using UPS they could also be bumped into the next zone. Since UPS updated the list of zip codes for zones, you may have to pay based on a further zone than before. 
  • If you ship a lot of low-density packages. This is no different than the past several years but is important nonetheless. The pricing structure that FedEx and UPS have in place dissuades larger, lighter shipments. The carriers prefer denser packages that take up less space because they’re able to fit more packages on their delivery vehicles. If your package dimensions cause your shipment to be rated at a higher weight due to dimensional (DIM) weight pricing, your cost increase could be compounded. Many of the higher weight breaks are getting hit the hardest with increases over the average this year.

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 in general. But in 2025, 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.
  • Evaluate the services you’re using. Ground services are the more economical option and often the transit times are comparable to what you can get with some Express/Air services. Where you can, utilize Ground services to save on your costs.
  • Take advantage of the discounts available to you. Thanks to our unique alliance with FedEx, PartnerShip is able to provide your business with industry-leading discounts. Small and mid-sized businesses can enjoy competitive pricing that is typically reserved for high volume shippers - without any minimum shipping requirements. Save at least 40% off FedEx Express, at least 25% off FedEx Ground, and at least 15% off Residential and Delivery Area surcharges. Enroll today to access the discounts.

Wrapping your head around all of the changes for 2025 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.   

A Practical Guide to Parcel Shipping Rates

September 23, 2024 at 10:44 AMLeah Palnik
A Practical Guide to Parcel Shipping Rates

The ever-rising cost of parcel shipping is a hot topic. FedEx and UPS raise their rates regularly and find clever, new ways to recoup costs. The changes aren’t always clear and can catch shippers by surprise. However, if you have a solid understanding of what determines small package rates and what to look out for, you’ll be in a good position to manage your costs.

How parcel shipping rates are determined

  • Weight. No surprise here, but how much your shipment weighs plays a large part in how much it will cost to ship. If you take a look at the service guides for UPS and FedEx, you’ll notice that the heavier the package, the higher the rate.
  • Dimensions. You can’t look at just the weight alone. In fact, your package dimensions could cause your shipment to be rated at a higher weight, thanks to what is known as dimensional (DIM) weight pricing. Carriers use this to ensure you’re paying for the space that your shipment takes up in their delivery vehicles. Larger packages take up more room, leaving less space for other deliveries. To avoid this increase in your parcel shipping costs, it’s imperative that you’re efficient with your packaging.
  • Service. If you need your shipment to get to its destination sooner rather than later, you’re going to pay for it. Air services that offer delivery overnight or next day will cost you the most. In comparison, if you can plan for some extra time, using a ground service will save you.
  • Distance. Your origin and destination ZIP codes play a big part in determining your rate. The farther your shipment needs to travel, the more you’ll pay. This is based on groups of ZIP codes that parcel carriers refer to as zones.
  • Fuel. This is a tricky one to put your finger on because both UPS and FedEx will make adjustments on a weekly basis based on information published by the U.S. Energy Information Administration (EIA). The surcharge is a percentage and applies to the base rate, as well as a number of accessorial charges.
  • Surcharges. Based on your shipment’s characteristics, you can be hit with additional fees known as accessorials or surcharges. These fees are assessed for things like residential deliveries, additional handling, and oversized dimensions. The best thing you can do is educate yourself on the common fees so you can budget for the unavoidable ones or make some changes to avoid the ones you can.
  • Discounts. Not every account is created equal. You may be able to secure discounts directly with your carrier if you have significant shipping volume. For everyone else, you can get discounts by working with a third-party like PartnerShip.

The history of FedEx and UPS rate changes
At the end of every year, FedEx and UPS both announce a general rate increase (GRI). In recent history, it has been an average increase of 4.9%-6.9%. However, that is only an average – meaning that some rates will actually increase by more or less based on service and package characteristics. Throughout the year, keep track of the type of parcel shipments you process – the services you’re using, the weight and dimensions, and zip codes. That way you’ll be able to focus on determining the rate increases that will affect you the most when the time comes. This information can be overwhelming to go through, so get help where you can. PartnerShip publishes a guide to the rate increases every year that can be a great resource for when you’re planning your budget.

Changes to parcel shipping costs to look out for
It’s hard to predict exactly what changes FedEx and UPS will make to their rates, but it’s important to note that they don’t leave them untouched outside of the GRI. In fact, in recent years they have been making more changes throughout the year. These changes tend to affect surcharges rather than the base rates. Not only how much they’ll cost you, but also how they’re defined. For instance, FedEx and UPS lowered the weight threshold for the Additional Handling fee. That means that more packages will get dinged with that surcharge. Obviously this isn’t a rate increase, but it’s a way that your costs could increase.

FedEx and UPS also make changes based on long-term industry trends, seasonal demand, or unforeseen changes in the market. When their networks are strained the most, FedEx and UPS are bound to react. For example, during past peak holiday seasons when online orders are known to be at an all-time high, the carriers instituted a surcharge for residential shipments. And notably, during the COVID-19 pandemic, FedEx and UPS instituted a temporary surcharge on international shipments due to air cargo capacity being limited.

The bottom line on parcel shipping
Understanding all of the factors that make up your parcel rates is the first step to uncovering opportunities to cut your costs. Along with having that solid foundation of knowledge, keep a good record of your parcel shipments and their details so you can accurately forecast your needs and make adjustments. Lastly, stay on top of the latest updates from FedEx and UPS by reviewing their published changes and signing up for service alerts.

You don’t have to navigate these changes alone. PartnerShip provides resources to help you make sense of parcel shipping rates and can help you cut your costs. Thanks to our unique alliance with FedEx, we’re able to provide your business with industry-leading discounts. Save at least 40% off FedEx Express and at least 25% off FedEx Ground when you enroll in our FedEx Advantage program

Your No-Nonsense Guide to Dimensional Weight Pricing

June 28, 2024 at 11:23 AMLeah Palnik

If you regularly ship with UPS or FedEx, you’ve likely encountered dimensional (DIM) weight pricing whether you realized it or not. Essentially it’s a way for the carriers to charge you more for larger, but lighter, packages. And if you’re not careful, it can drive up your costs significantly.

What is dimensional weight pricing?
Dimensional weight pricing is a way to rate your packages based on density in relation to weight. What that means is that instead of rating your package purely based on its actual weight, it also takes into account how much space your package takes up on the carriers’ delivery vehicles.

How do you calculate dimensional weight pricing?
Luckily for you, we have a DIM weight calculator you can use. But if you’re curious about the formula behind it, it’s fairly simple. Start by calculating the cubic size of your package – multiply length by width by height. Then take that total and divide it by 139, which is the dimensional divisor determined by FedEx and UPS. If the resulting DIM weight is higher than your actual weight, the DIM weight becomes the weight you’ll be rated on – otherwise known as your billable weight.

DIM Weight Calculation

Let’s look at a couple simple examples. If you have a 12x12x12 box, the dimensional weight will be 12 lbs. So if you’re shipping 15 lbs. of books, your package will be rated based on the actual weight of 15 lbs. But if you’re shipping 5 lbs. of ping pong balls, your package will be rated based on the DIM weight of 12 lbs. since it’s the higher weight.

Why is dimensional weight pricing used?
UPS and FedEx want to discourage shippers from using unnecessarily large packaging, and there is one main reason for this. The larger your package is, the more space it occupies on their planes and trucks. This in turn, leaves less room for other packages. UPS and FedEx make more money and work far more efficiently if they’re able to fill up their delivery vehicles with more packages.

The history of dimensional weight pricing
Once upon a time, not all shipments were subject to DIM weight pricing. The DIM factor that FedEx and UPS use has also changed over time – and not in a way that’s favorable to shippers. While the DIM weight formula and shipment qualifications have remained steady for a few years now, there’s no guarantee that it’ll stay that way. Let this be a lesson on how important it is to stay alert on any announced changes from both carriers.

How do you avoid overpaying due to dimensional weight pricing?
The most important thing you should be doing to avoid DIM weight pricing is right-sizing your packaging. You need to consider both the size of the item you’re shipping and also how fragile it is. Items that are at a greater risk of damage will need more cushioning, which will take up more space. Try to find packaging that allows enough room for the needed cushioning, but no more. The smaller you can make your package, while still keeping your item safe, the better.

There are a few resources available that you can use to find the right packaging for the items you’re shipping. UPS has guidelines and tips on its website. FedEx also has a number of packaging guides based on the type of item you’re shipping. But beyond that, FedEx even has a Packaging Lab where you can send your packaging in for durability testing or request a design consultation to improve the efficiency of your packaging. Many of the services are free if you have an account.

Keeping your small package costs low
While ensuring you have efficient packaging to avoid DIM weight pricing is one way to help reduce your shipping costs, another is securing discounts with the carriers. That can be difficult for small and medium-sized businesses to negotiate on their own. However, when you work with PartnerShip you can access savings that are typically reserved for high-volume shippers. Enroll today to sign up for FedEx discounts.

DIM Weight Infographic

Carrier Liability vs. Freight Insurance. What’s the Difference?

December 4, 2023 at 9:42 AMPartnerShip
Liability vs. Freight Insurance Blog PostFreight damage and loss is a reality of shipping. It’s not a matter of if it will happen to you; it’s a matter of when. When damage or loss occurs, your first thought is often, “how will I be compensated?” To answer the question, you need to understand the difference between carrier liability and freight insurance.


Carrier Liability

Every freight shipment is covered by some form of liability coverage, determined by the carrier. The amount of coverage is based on the commodity type or freight class of the goods being shipped and covers up to a certain dollar amount per pound of freight. 

In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s common to see liability restricted to $0.25 per lb. or less for LTL or $100,000 for a full truckload. Also, if your goods are used, the liability value per pound will be significantly less than the liability value per pound of new goods. Liability policies can vary, so it’s very important to know the carrier’s liability for freight loss and how much is covered before you arrange your freight shipment.

Freight damage and loss is a headache. In order to receive compensation, a shipper must file a claim proving the carrier is at fault for the damaged or lost freight. Carrier liability limitations include instances where damage is due to acts of God (weather related causes) or acts of the shipper (the freight was packaged or loaded improperly). In these cases, the carrier is not at fault. Additionally, if damage is not noted on the delivery receipt, carriers will attempt to deny liability. 

If the carrier accepts the claim evidence provided by the shipping customer, then they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price. The carrier may also pay a partial claim with an explanation as to why they are not 100% liable. The carrier will try to decrease their cost for the claim as much as possible.   

Freight Insurance

Freight insurance (sometimes called cargo insurance or goods in transit insurance) does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance is a good way to protect your customers and your business from loss or damage to your freight while in transit. There is an extra charge of course, and it is typically based on the declared value of the goods being shipped. Most freight insurance plans are provided by third-party insurers.

As mentioned earlier, your freight might have a higher value than what is covered by carrier liability, such as shipping used goods. Another example is very heavy items. Carrier liability may only pay $0.25 per pound for textbooks that have a much higher value. This is a great example of when freight insurance is extremely helpful in the event of damage or loss.

Carrier Liability vs. Freight Insurance in the Claims Process

If your freight is only covered by carrier liability coverage:

·         Your claim must be filed within 9 months of delivery

·         The delivery receipt must include notice of damage

·         Proof of value and proof of loss is required

·         The carrier has 30 days to acknowledge your claim and must respond within 120 days

·         Carrier negligence must be proven

If your shipment is covered by freight insurance:

·         Proof of value and proof of loss is required

·         Claims are typically paid within 30 days

·         You are not required to prove carrier negligence

Carrier Liability vs. Freight Insurance

Deciding which option is best for your shipment

Anything that comes at an added cost needs to be evaluated critically and freight insurance is no different. There are a few things to consider as you weigh the potential cost and risk of damage and loss versus the cost and benefit of insurance. You'll need to think about the commodities you're shipping, how time critical your shipment is, and if you'd be able to weather the financial burden that comes with a denied or delayed claim payout. 

Understanding your carrier's liability coverage and knowing the ins and outs of freight insurance can be tricky. If you have questions like “how much does freight insurance cost?” or “what does freight insurance cover?” the team at PartnerShip can help

Freight Shipping Documents 101

November 13, 2023 at 8:40 AMLeah Palnik

If you're new to freight shipping, there are a few documents you will come across frequently that you may be wondering what they are, why they are used, and what the differences of each are. For instance, what's the difference between a freight bill and a bill of lading; what do BOL and POD stand for; and what is a weighing-and-inspection report? Knowing these documents and their purpose can help avoid misunderstandings that might undermine an otherwise mutually beneficial business relationship between you and your third party logistics provider, carriers, suppliers, or even customers.

What is a Bill of Lading?

The bill of lading, or BOL as it is often called, is a required document to move a freight shipment. The BOL works as a receipt of freight services, a contract between a freight carrier and shipper, and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly. The BOL also serves as a receipt for the goods shipped. Without a copy signed by the carrier, the shipper would have little or no proof of carrier liability in the event the shipment was lost or destroyed.

When you schedule a shipment through PartnerShip, the BOL is automatically generated based on the shipment details entered during the quoting and shipment creations process. You are welcome to use our BOL or you can use your own if your order system already generates one. Either way, the BOL should be provided to the carrier on pickup and will be delivered to the consignee on delivery.

When composing a BOL, it is important to provide weight, value, and description of every item to be shipped. The BOL spells out where the freight will be collected, where it will be transported, and any special instructions on when and how the freight should arrive. Traditionally, the BOL also serves as title to the goods thus described; in other words, it can serve as an official description of loan collateral.

What is a Freight Bill?                                        

Freight bills, or freight invoices, are different from bills of lading in that they do not serve as a key piece of evidence in any dispute. The freight bill is the invoice for all freight charges associated with a shipment. While freight bills should match up closely to their BOL counterparts, they can also include additional charges (such as accessorials), information, or stipulations that serve to clarify the information on the BOL. When you are looking for an invoice to examine as part of a shipping analysis, you will generally use the freight bill rather than the original BOL since it will have the freight cost information on it.

In effect, freight bills are similar to other invoices for professional services your business might collect. Although they may seem less important during the freight shipping process, they should be retained long term and audited to catch any errors. PartnerShip customers can easily access copies of their freight invoices online at PartnerShip.com.

What is a Proof-of-Delivery?

A proof of delivery, or POD, is a document that is used when a shipment is delivered. The consignee signs this document to confirm delivery. Some carriers will have the consignee sign the BOL as confirmation of delivery. In other cases, carriers will use their own delivery receipt (DR), or even a copy of the freight bill. The consignee, when accepting delivery of the goods, should note any visible loss or damage on the delivery receipt (or whatever is used as the POD). It is your right as the freight shipper to request a copy of the POD at any time.  

What is a Weighing and Inspection Report?

A weighing and inspection report, or W&I report, is a document you may encounter less frequently. The W&I report comes into play as part of a carrier's process to inspect the freight characteristics of a shipment to determine that it accurately matches the description that is on the BOL. If the actual shipment weight is different than the weight that is shown on the BOL, then a W&I report is completed noting the change.

When a customer receives a freight bill with charges greater than what was originally quoted, often times this is due to this sort of weight discrepancy. The customer has the right to request a copy of the W&I report from the carrier if needed to confirm the reweigh was performed and is valid. 

What is a Cargo Claims Form?

A cargo claims form, or simply claims form, is a document that carriers will require a customer to complete if there is any sort of shortage, loss, or damage "claim" with a shipment. A claim is a demand in writing for a specific amount of money that contains sufficient information to identify the shipment received by the originating carrier, delivering carrier, or carrier in which the alleged loss, damage, or delay occurred within the time limits specified in the BOL.

Claims should be filed promptly once loss or damage is discovered. Time limit for filing a claim is 9 months from date of delivery, or in the event of non-delivery, 9 months after a reasonable time for delivery has elapsed. If a claim is not received by the carrier within this time, payment is barred by law. A claim may be filed by the shipper, consignee, or the owner of the goods. Be certain to clearly show the name and complete address of the claimant. If you need help filing a claim with a carrier, feel free to contact PartnerShip and we'll help you through the process to ensure your best interests are protected. 

PartnerShip is here to help

As always, your friends at PartnerShip stand ready to help our customers every step of the way through the shipping process. We know you have a business to run – that's why you can count on PartnerShip to help you get the best shipping rates, the best carriers, and the best service for your LTL freight and truckload shipping needs. Contact us today to learn how we can help you ship smarter.


Freight Carrier Closures: Important Dates for the 2023 Holiday Season

November 1, 2023 at 10:26 AMJen Deming
Freight Carrier Closures 2023

With the holiday season just around the corner, shippers need to be extra mindful of their LTL schedules. In addition to the usual cyclical increase in freight loads, the industry has also had a volatile year, with carrier closures and limited capacity causing more hiccups. As a result, transit times are a bit uncertain.

We want to make sure that your shipments reach their destinations on time and without any drama along the way. When planning, be sure to check which days carriers will be closed in our helpful guide below:

Freight carrier closures

  • Saia LTL Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
  • XPO Logistics – will be closed November 23 – 24, December 22 – 25, and January 1.
  • ArcBest – will be closed November 23 – 24, December 25, and January 1.
  • R+L Carriers – will be closed November 23 – 24, December 25, and January 1.
  • Estes – will be closed November 23 – 24, December 25 – 26, and January 1.
  • Dayton Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
  • Pitt Ohio – will be closed November 23 – 24, December 25 – 26, and January 1.
  • AAA Cooper – will be closed November 23 – 24, December 25 – 26, and January 1.
  • Midwest Motor Express – will be closed November 23 – 24, December 25 – 26, and January 1.
  • Dohrn Transfer Company – will be closed November 23 – 24, December 25 – 26, and January 1.
  • TForce Freight – will be closed November 23 – 24, December 25 – 26, and January 1.

To keep things running smoothly and avoid any unnecessary stress, it's crucial to plan your shipping schedule carefully during these final months of the year. Don’t forget, PartnerShip can help you navigate your LTL loads so your season stays merry and bright!

Please note that our office will be closed November 23 – 24, December 25, and January 1 so that we can celebrate with our families. Happy Holidays!

Uncovering the Top 5 Benefits of Regional LTL Freight Carriers

October 10, 2023 at 1:57 PMLeah Palnik

In the complex world of logistics, the carrier network you utilize can either optimize your shipping operations or bring them to a grinding halt. One strategy that is often overlooked is partnering with regional less-than-truckload (LTL) freight carriers. Regional LTL carriers play a crucial role in the supply chain ecosystem by offering a focused and localized approach to freight transportation. Unlike their national counterparts, regional carriers operate within specific geographic areas, so they've got the inside scoop on what makes your local logistics tick. It's like having a shipping partner who knows the shortcuts, secret spots, and best routes – because they're in your backyard.

In this article, we'll delve into the top 5 advantages of leveraging regional LTL carriers for your shipping needs and explore how they can transform your supply chain efficiency.

Advantages of using regional LTL carriers

  1. Lower Damage and Loss Claims. Minimizing freight damage and loss is a top priority for any shipper. Consider regional LTL carriers as your secret weapon in the battle against damage. They excel in this aspect by offering better handling and protection of shipments. With a smaller service area, these carriers can ensure more direct routes and fewer touchpoints, reducing the likelihood of damage during transit. This commitment to careful handling translates into fewer claims and greater peace of mind for shippers.
  2. Lower Minimum Charges. There’s no way around it - minimum charges are a buzzkill. National carriers typically have higher minimum charges due to their extensive network coverage. Regional LTL carriers, on the other hand, offer a more favorable structure for small to medium-sized businesses. By catering to a smaller service area, these carriers can maintain cost-effective minimum charges, making them an attractive choice for shippers looking for a cost advantage.
  3. Shorter Transit Times through a Smaller Carrier Footprint. Efficient supply chains rely heavily on fast transit times. Regional carriers shine in this aspect as their smaller service footprint translates to quicker deliveries. With less ground to cover, shipments can move swiftly through streamlined routes, reducing overall transit times. Real-world examples have shown that regional LTL carriers consistently outperform national carriers when it comes to delivering on time.
  4. Top Notch Customer Service and Communication. Who doesn't love getting the VIP treatment? Customer service plays a pivotal role in freight shipping, where timely updates and proactive support are crucial. Regional LTL carriers excel in this domain by providing a more personalized and responsive customer experience. You can establish direct lines of communication with local carrier representatives who possess an in-depth understanding of the regional landscape, ensuring effective troubleshooting and issue resolution.
  5. Cost-Effective Shipping Solutions. For businesses that frequently ship within a specific geographic area, regional LTL carriers offer budget-friendly solutions. The proximity of the carrier's service area to the shipper's location means reduced transportation costs and potentially fewer accessorial charges. Say goodbye to excessive charges, and hello to optimizing your freight spend.

Advantages of using regional LTL carriers

The Regional LTL Carrier Advantage is Clear
It’s clear - using regional LTL carriers puts you on track to shipping smarter. From minimizing damage to providing faster transit times and superior customer service, these carriers are tailor-made for businesses seeking localized, cost-effective, and efficient freight transportation. As you evaluate your shipping options, consider the strategic benefits that regional LTL carriers bring to the table. By making the right carrier selection, you can optimize your supply chain and elevate your shipping strategy. PartnerShip has a vast network of reputable carriers, including regional LTL freight carriers that service your area. 

Contact our team today to uncover how you can benefit from utilizing regional carriers.

Freight Class Made Easy: Top Resources for Every Shipper

September 7, 2023 at 12:13 PMJen Deming
Freight class resources blog title

When it comes to shipping goods via less-than-truckload (LTL), understanding freight class is essential. Freight class is a numeric code that categorizes different types of products or commodities for shipping purposes. It plays a crucial role in determining the cost of your shipment and other factors such as weight, distance, and additional services. In this comprehensive list of resources, we will delve into the intricacies of freight class, covering everything from the very basics to tools that can help you determine class.

Resources that will help you understand everything you need to know about freight class:

  • Understanding the basics of a freight class
    Freight classification is a crucial component of LTL shipping, but the system can be complicated. Factors such as density, storage/stowability, and liability all impact class, and the higher the number usually means the higher the rate. This article will help you understand the basics of freight class, and includes information about a valuable tool, ClassIT, that can help shippers accurately determine their product classification.

  • Grasp the impact of density in freight shipping.
    Packaging, commodity type, and specs all impact the cost of your freight, but some products have an added layer of mystery (and math) when it comes to class - density. Density is calculated by measuring the height, width, and depth of the shipment, including skids and packaging. Learn more from our insights about why carriers are putting such an emphasis on shipment density and how it affects your freight costs.

  • Decipher the complicated nature of an FAK.
    An FAK is a class agreement between a carrier and a shipper, allowing the shipper to move multiple products of different classes at one standardized freight class. Sounds simple, right? The catch is that carriers have held back in entering these agreements more now than they used to. This article takes a closer look at what defines an FAK, what shippers are likely to qualify, and if it’s something that makes sense for your business.

  • Master the factors that affect your freight class.
    Freight classification is an essential process in LTL shipping that involves categorizing products based on specific criteria like density, stowability, liability, and handling. Understanding these variables is crucial for calculating the class and cost of shipping. This infographic can help you more easily understand the factors that determine class and how to get it right.


Tools that will help you determine your freight class:

Shippers should have access to the tools they need, when they need it. That’s why we've made two resources available online that can help sort through some of the toughest parts of freight shipping - calculating density and freight classification.

  • Let the freight experts determine class for you.

    Finding a freight class can be complicated but working with the team at PartnerShip can help take out the guesswork. By providing details on our online form such as the dimensions, weight, density, and product type, our team can help sort through the jargon and provide you with an accurate class for your shipment.

  • Calculate density accurately with this free tool.

    A density calculator is a tool that helps shippers determine the density of their shipments. It measures how heavy a shipment is relative to its size. By inputting the weight and dimensions of the shipment into our calculator, you can easily determine the density and check your estimated freight class.


Get a handle on freight class with the right resources and tools

Freight class is a critical component of shipping your LTL loads, but it's confusing and making a guesstimate is risky business. Your shipment's freight class plays a huge part in everything from your initial rate estimate to your payout for any potential damage claims. How can a little number mean so much? The team of experts at PartnerShip can help put an end to your freight class frustration. Say goodbye to head-scratching and hello to efficient solutions. Contact us to learn more.

What is the Difference Between Cross-Docking and Transloading?

August 21, 2023 at 8:14 AMPartnerShip
What is the Difference Between Cross-Docking and Transloading?

It's common in logistics and warehousing to be asked: What is cross-docking? What is transloading? What is the difference between cross-docking and transloading?

Cross-docking is unloading inbound freight from one truck, holding it in a warehouse or terminal for a very short period of time, and loading it onto another truck for outbound shipping.

Let's look at an example of cross-docking: A manufacturer needs to ship 20 pallets of products from the east coast to destinations in Texas, Florida and California. The 20 pallets are first shipped to a third-party warehouse in Cleveland, Ohio. A day later, 5 pallets are sent to Florida, 10 to Texas, and 5 to California on trucks bound for those destinations. Since the pallets were never unpacked and were only in the warehouse long enough to move them from one truck to another truck (and from one dock to another dock), they have been cross-docked. 

Cross Drocking

Transloading is when inbound freight is unloaded, the pallets are broken down, and their contents sorted and re-palletized for outbound shipping.  

Using the same Cleveland, Ohio third-party warehouse, here is an example of transloading: 5 suppliers of a manufacturer ship a year’s supply of components to the warehouse. The components are stored until they are needed, at which time the warehouse picks them, assembles them into a single shipment, and ships it to the manufacturing facility.

Transloading

To recap, cross-docking is the movement of an intact pallet (or pallets) from one truck to another, and transloading is the sorting and re-palletizing of items.

Both cross-docking and transloading services are specific logistics activities that can create benefits for businesses; especially ones that utilize a third-party warehouse.

Benefits of cross-docking

  • Transportation costs can be reduced by consolidating multiple, smaller LTL shipments into larger, full truckload shipments.
  • Inventory management is simplified because cross-docking decreases the need to keep large amounts of goods in stock.
  • Damage and theft risks are reduced with lower inventory levels.
  • With a decreased need for storage and handling of goods, businesses can focus their resources on what they do best instead of tying them up in building and maintaining a warehouse.

Benefits of transloading

  • Businesses can store goods and products near customers or production facilities and have them shipped out with other goods and products, decreasing shipping costs.
  • Businesses can ship full truckloads to a third-party warehouse instead of many smaller LTL shipments.
  • With storage and logistics managed by others, the need for building and maintaining a warehouse is eliminated.

The bottom line is that these benefits translate directly into cost savings. To learn more about the full range of third-party logistics (3PL) services that PartnerShip has provided for three decades, and how cross-docking and transloading in our conveniently located 200,000+ square foot Ohio warehouse can benefit your business, call us at 800-599-2902 or send an email to warehouse@PartnerShip.com.

LTL vs. Truckload Freight. What’s the Difference?

July 12, 2023 at 9:27 AMPartnerShip

Less-than-truckload (LTL) and truckload freight shipping may appear to be similar but they are two very different shipping services. Many shippers exclusively use one or the other, but they can be used together. To help you ship smarter, here are the four main differences between LTL and truckload shipping and rates. A truck is driving along a mountain road.

Transit time and handling

LTL: LTL shipping combines shipments from multiple customers so your freight isn’t the only freight on the truck; it shares space (and cost) with other company’s freight and will make multiple stops at terminals between the shipper and consignee. For example, the freight you are shipping from Cleveland to Houston may make stops in Indianapolis, Nashville and Dallas before reaching its final destination. At each stop, your freight is unloaded and reloaded and must wait for the next truck, increasing transit time and handling, and the possibility of damage.

Truckload: When you ship full truckload, your freight is the only thing on the truck. The carrier will make a pickup at the origin and drive straight to the destination. Aside from driver rest breaks, fuel and equipment issues, the truck doesn't stop, resulting in much faster transit times. In addition, your freight never leaves the truck, resulting in much less handling and fewer opportunities to be damaged.

Weight and shipment size

LTL: Less-than-truckload shipments are typically between one and six pallets and weight from 200 to 5,000 pounds. LTL freight usually takes up less then 12 linear feet of the trailer, and since the typical pallet measures 40” x 48”, 6 pallets arranged side-by-side would take up exactly 12’ of linear space on each side of the trailer.

Truckload: A full truckload shipment can range from 24 to 30 pallets and up. With truckload freight, the space your shipment takes up in the trailer has more of an impact than weight, so truckload shipments commonly range from 5,000 pounds to 45,000 pounds and up.


Pricing

LTL: The most significant difference between LTL and truckload shipping is the pricing. LTL freight pricing is regulated by the National Motor Freight Traffic Association (NMFTA) which is a nonprofit membership organization made up primarily of interstate motor carriers. It classifies all freight based on its commodity, density, and ease of transport. LTL carriers each have standard LTL rates which are determined by your origin and destination, your freight’s NMFC class, the amount of space it occupies on the truck, and any accessorials you require. All of these variables are factored into the LTL rate you pay.

Truckload: Truckload freight pricing is completely dependent upon the market. With no pre-established rates, truckload freight negotiations happen as needed over the phone or through email. Truckload rates fluctuate, sometimes by the week, day or even by the hour. Factors that drive pricing include the origin and destination, weight of the shipment, seasons (such as harvest season or even back-to-school season), truck capacity and location, the shipping lane or route, and fuel and operating costs. Typically, there are no contracts with truckload carriers, which can vary from an owner/operator with one truck to huge truckload shipping companies with thousands of trucks in their fleet.

Reefer availability

LTL: Refrigerated LTL shipments are a bit more difficult to find and secure than dry van LTL shipments. Most reefer LTL carriers have schedules that are determined by lanes and temperatures. As an example, an LTL reefer carrier might pick up in southern California on Wednesday and may run at 45 degrees with a set delivery route and schedule. This can make finding an available reefer LTL carrier difficult, especially for one-off shipments or on short notice.

Truckload: Reefer trailers are common and readily available. Reefer trailers can range from below zero to seventy degrees, and since only your freight is on the trailer, the shipment can move on whatever schedule and temperature you need it to. Aside from the temperature control and being a bit more expensive, refrigerated truckload shipments aren’t much different from dry truckload shipments.

PartnerShip is an expert at providing you the best rates on both LTL and truckload freight shipping so you can stay competitive. Contact our shipping experts whenever you need to ship smarter.
 
Get a free quote on your next LTL freight shipment or truckload freight shipment!