Shipping in 2026 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 22, 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 2026. Jump to:

• A look back at the FedEx and UPS GRIs
• Important changes for 2026
• How the FedEx and UPS rate changes will affect your costs in 2026
• What you can do to mitigate the effects of the FedEx and UPS rate increases

A look back at the FedEx and UPS GRIs 

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

This marks the third consecutive year that both carriers have announced an average increase of 5.9% — a level first introduced in 2022 after several years of 4.9% hikes. In 2023, rates climbed even higher to 6.9%, coinciding with a surge in shipping demand fueled by pandemic-driven e-commerce growth. The return to a 5.9% increase in 2024, 2025, and now 2026 shows that while demand has stabilized, the carriers continue to adjust pricing to offset expenses and network investments. 

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

• The new FedEx rates take effect on January 5, 2026, while the UPS rates take effect two weeks earlier on December 22, 2025. Notably, UPS is raising its 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%. When you are reviewing your shipping costs, its essential to budget for increases to surcharges as well.
• How much your costs actually go up in 2026 will be closer to 8-12% and will depend on several different factors. The services you use, the surcharges applied, your shipment dimensions and weight, and how far your shipments are traveling all have an effect. 

Important changes for 2026

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: 

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.ou 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 learn more about managing your inbound shipments!

The end of the year is often hectic for many businesses, with 2025 proving no different. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.

Ship early

We can’t stress this enough! The closer we get to Christmas, the higher the demand on carrier networks. While major disruptions aren’t expected, the seasonal surge in shipments and subsequent strain on carrier networks can still lead to delays. Being proactive and shipping early gives you extra time and flexibility if things slow down. This is especially important for time-sensitive packages that need to be delivered by Christmas. Regardless of who you ship with, the holiday season can be unpredictable; plan ahead and build in some buffer time to help ensure your packages reach their destinations on schedule.

Review holiday shipping deadlines

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

Peak season surcharges

Both FedEx and UPS are applying demand surcharges for the 2025 seasonal shipping surge. These fees add extra costs to packages, especially hitting residential deliveries and oversized packages the hardest during peak weeks. 

The first wave of demand surcharges runs from late September through the end of November. They range from $0.40 to $2.20 for residential deliveries and select ground and expedited services.

All of the demand surcharges then increase the week of Thanksgiving through the week of Christmas. The surcharges for standard-sized shipments range from $0.60 to $3.55 during this time. On top of that, if your package is considered oversized or requires additional handling, you can expect to pay up to an additional $545. 

For the final wave, the surcharges mirror those accessed at the beginning of peak season and last until January 17th for UPS and 18th for FedEx.

One important thing to note is that throughout the entire peak season, many of these additional fees adjust weekly or even increase based on your account’s shipping volume. To avoid surprises, review the published information and factor these seasonal adjustments into your budgets.

Prepare for the 2026 rate increases

Don’t forget that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers rolled out an average rate increase of 5.9% in 2025, and FedEx has announced another average 5.9% rate hike for 2026. While UPS hasn’t released its new rates as of early October, it typically matches FedEx’s annual increase, so shippers should expect a similar announcement soon.  

Winter is coming, and that means large parts of the nation will be impacted by cold, freezing temperatures, and adverse weather conditions. Certain types of freight, like beverages, electronics, and pharmaceuticals, are especially at-risk for damage during the winter months. The good news is that there are ways to protect your freight from freezing, which can help avoid both damages and cost challenges during the winter months. But you must be vigilant and follow three essential strategies.

Strategy 1 – Ensure your prep and packaging can handle cold temperatures   

Protecting your freight starts with you, the shipper, and proper packaging and preparation. To make sure that your freight kicks off its journey safely, make sure to use the following tactics to avoid issues:

• Know your product: Different types of products have varying temperature minimums, so first and foremost, you should determine what temperature ranges are safest for your freight.
• Group like products together: When palletizing or crating your loads, make sure similar product types (and temperature ranges) are grouped together for maximum safety.
• Use insulated packaging: When boxing up your product, make sure items are packed with insulating materials, like foam core, cotton or paper fiber, or insulated box liners.
• Wrap packed pallets: Insulated pallet covers, or specialty cargo blankets can help trap heat inside, making sure your products stay a warm and consistent temperature.
• Track temperature variations: Many shippers opt to use smart thermometers that can help track shipment temperature and detect any shifts that may impact the product.
• Load quickly and efficiently: Your loading team doesn’t have the luxury of time during the winter. Load carrier trucks quickly to minimize exposure to low temperatures and other weather risks like rain and snow.

Strategy 2 – Become familiar with specialized temp-control equipment options

To be completely honest, the equipment you choose will make or break your freight. Most carriers, especially large national carriers like TForce Freight, offer temp-controlled services and have specialized trucks in their fleet that can manage freeze-protection. 'Reefer' (refrigerated) trucks aren't just used to haul frozen products during the summer. They can also be used to maintain a constant temperature for at-risk freight during the colder months. 

When arranging your temp-sensitive freight, it’s important to contact your preferred carrier and learn about what options they offer. Communicate your shipment’s needs, starting with product type and what the required temperature range must be. Carriers can help secure a reefer truck, offer heated truck options, or even may provide alternative heating solutions, like portable or built-in trailer heating units. 

After communicating with the carrier and deciding which temperature-control options are right for you, it’s important to note temperature requirements on your bill-of-lading. As with most special requests, this not only gives the carrier direction on your needs, but it can also be used as a point of reference for liability should something go wrong during transit. 

Keep in mind, that temperature-control services are considered accessorials, and will incur charges and fees that may vary by carrier. Building those fees into your shipping costs is best done early on in the transportation process.

Strategy 3 – Stay on top of delays and weather conditions

Not every part of the United States will be impacted by inclement winter weather – but most of it will be. Snow, rain, ice, and even wind can create major issues for truckers during the winter season. It’s super important to research the path that your shipment will be taking. Don’t let your load fall prey to the common “out of sight, out of mind” misconceptions some shippers succumb to.

When shipping LTL, your load won’t travel from point A to point B in one straight shot. The further your load travels, the more varied its path will be. If your shipment enters any of the high-risk zones like the Midwest, New England, or Central U.S., it’s extra crucial you stay on top of weather updates for your shipping lane. When the weather is bad enough, it’s in your best interest to delay shipping until it clears, if you can swing it. Road closures and rerouting may be hard to predict, so it’s always smart to build extra time into your transit.

Shipping over the weekend is always tricky, even in the best-case weather scenarios. But in the colder months, you will likely encounter extra challenges. Because weekends are considered “dead freight” time, your loads will sit and be exposed. Your best bet is to ship early in the week and avoid weekends all together, but if you have to, make sure you communicate with the carrier about keeping the temperature-control running while idle.

Because freight transit can be so unpredictable during cold weather, always keep in mind that you should be keeping alternate shipping options open. If you have a larger freight shipment, a dedicated truck may be a viable alternative. While pricey, keeping room in the budget for emergency scenarios like weather delays is a smart plan of action.

Shipping freight safely in winter is possible

Winter weather freight shipping can be tricky, but it’s not out of the question. You will need to strategize even more than you’re used to, and take every precaution necessary to avoid slip-ups. Keep in mind that now is not the time to take any unnecessary risks just in an effort to save a buck. PartnerShip can help you keep on top of cold weather shipping issues, including communicating with carriers and staying on budget. If you’re going to be shipping this winter, make sure to contact our freight experts so your freight is delivered safely. 

Freight 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

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. 

Retailers face many challenges when it comes to inbound shipping. Freight costs are constantly on the rise and resources are limited. On top of that, many retailers lack visibility and control of the shipments they receive from suppliers. The good news is that can be remedied – simply by utilizing routing instructions.

Before you can compose your routing instructions, you need to conduct a thorough analysis of your current inbound shipping operations. Take a look at the invoices from your major suppliers to identify what they allocate for shipping and handling. Compare these rates with the rates that you receive with your preferred carriers or broker. Often times, you’ll see that you’re able to get better pricing by using your providers.

If you don’t currently have better rates, working with a freight broker can help. Brokers are able to aggregate the freight volume of their customers and help them negotiate better discount rates and terms. They can also provide additional value-added services, sometimes at no additional cost, that are designed to lower your overall logistics expenses.

Once you’ve conducted your analysis and you have secured competitive pricing, you’re ready to create your routing instructions. It’s important to use clear language and include specific service requirements about the mode and carrier. Here are a few examples:

• Ground shipments between 0 lbs. and 199 lbs. – FedEx Ground billing account #999999999
• Ground shipments between 200 lbs. and 5000 lbs. – UPS Freight Third Party Prepaid billed to PartnerShip at 500 E Lorain Street Oberlin, OH 44074
• Air shipments between 0 lbs. and 149 lbs. – FedEx Express billing account #999999999

In most cases, to obtain vendor compliance you simply need to draft a letter that includes your instructions. Be sure to include your full company information and a message requesting compliance within 30 days to avoid shipping fees being charged back to them. You can then include your routing letter in your next order or next communication with your vendor.

Once your routing instructions are in effect, you’ll benefit from streamlined receiving operations, lower costs, and dependable service. When everything is running smoothly, you can focus on growing and improving other parts of your business.

At PartnerShip, we know that it can be difficult for retailers to conduct an in-depth analysis and prepare routings on their own. That’s why we provide our customers with full inbound shipping management. We can provide you with a free analysis, create routing instructions, and work with many of your vendors on your behalf to obtain compliance. Get started by clicking here to request a free inbound shipping analysis.

It is a very common question for shippers: "Should I use a freight broker?" Before we list five important reasons why you should use a freight broker, we answer the question, “What is a freight broker?” A broker arranges freight shipping between a carrier and a shipper. In exchange, the broker receives a small commission for facilitating the transaction. That’s how freight brokers make money.

So, why use a freight broker? Efficiency. A freight broker adds value and flexibility to your supply chain and that becomes your competitive advantage. Focusing all of your energy on what you do best gives you an edge and helps you stay competitive.  Unless what you do best is shipping, you should consider using a freight broker to manage your shipping and logistics functions.

Big companies got big because they focused on what they did best. In fact, 85% of Fortune 500 companies use third-party logistics providers like freight brokers. That’s not a coincidence; it’s a cause-and-effect relationship. Every dollar saved on shipping goes right to the bottom line.

Consider these five important advantages of using a freight broker:

1. Save time, save resources, save money. With a freight broker as a strategic partner, you have the benefit of your own dedicated shipping department without the expense your own dedicated shipping department. You also don’t need to spend time on invoices, audits and training, Using a freight broker lets you focus on your business. 

2. More flexibility, more scalability. A freight broker partner is able to provide you more, or less, capacity as your business goes through its natural cycles. So there’s no need to stress over seasonality, irregular spikes or sudden troughs in your business.

3. Shipping expertise. What freight brokers do best is shipping, and working with one allows you access to their knowledge of best practices and real-world experience. It also allows you to access the latest technology for shipping reporting and visibility into your logistics.

4. It’s not just what you know, it’s who you know. Freight broker partners have expansive carrier networks that provide many advantages over an in-house shipping department. They have buying power and can provide volume discounts, lowering your shipping expenses. They also can provide access to capacity that otherwise would be unavailable, or very costly, to an internal shipping department.

5. It’s a partnership. Your freight broker works for you and will put your interests first, because when you succeed, they succeed and when your business grows, so does theirs. That’s the definition of a partnership: benefits for both parties.

Need more convincing about the benefits of using a freight broker? Call PartnerShip at 800-599-2902 or contact us and see how we can help you ship smarter so you can stay competitive. 

While we’d like to think that freight loss and damage can be avoided, realistically it’s something every shipper will face. That means that at some point you will likely need to file the dreaded freight claim. Unfortunately, when it comes to the final say in payouts, carriers are in the driver’s seat. The good news is, most denied claims or insufficient payouts are caused by five common oversights. If you can avoid these issues, you are more likely to win your claim and recoup your losses.

1. It falls into one of the exclusions outline by the Carmack Amendment

   The Carmack Amendment was passed in 1935 in order to protect carriers from exclusive responsibility for any damage or loss occurring during transit. It sets up five scenarios that legally exclude the carrier from liability. If damage or loss occurs due to one of these instances, it’s unlikely you’ll be able to collect for the damages.

   Act of God – Unavoidable events such as natural disasters, adverse weather conditions, medical emergencies, etc. that may befall the driver during transit fall into this category. These events have to be determined as unforeseeable and inevitable in order for the carrier to remain free from responsibility.

   Public Enemy – If the damage-causing incident occurred during a defensive call to action by the government or “military force”, the carrier is not responsible for damages. While rare during peacetime, this scenario has also been applied to acts of domestic terrorism, but does not refer to hijackers, cargo theft, etc.

   Default of Shipper – This scenario is the most common exclusion and places full responsibility for damages squarely on the shipper. If damage is caused by negligence of the shipper, due to poor packaging, improper labeling, rough handling during loading, and other factors, the carrier is exempt from liability.

   Public Authority – An incident that results in damage or delay due to government intervention like road closures, quarantines, trade embargoes, etc. are unavoidable and exempt carriers from responsibility.

   Inherent Vice – Some high-risk commodities deteriorate naturally over time, such as live plants, food, medical supplies, etc. As long as that deterioration is not being sped up by the carrier through negligence, they are safe from liability.

2. You are missing key documentation

   When you are submitting a claim, it is important that you have every piece of paperwork filled out correctly and in proper order for the carrier to review. The more documentation you can provide about specifics relating to your load, the better chance you have at winning a claim. It’s important for you to prove that the shipment was in good condition and securely packaged at the time of pick-up. Taking pictures of the product before, during, and after packaging is completed is a smart move.

   You should also make sure that the bill-of-lading (BOL) is filled out correctly with precise weight measurements, commodity descriptions, classifications, and piece counts. The BOL serves as a legal contract between the carrier and shipper – errors on this document will have far-reaching consequences. If your weight is off or the commodity/classification is incorrect, liability payouts may be less than you expect.

   An invoice determining the actual value of your product is key in determining a payout, as well as packing slips that help back up your piece counts. Other supporting documents like the paid freight bill, inspection reports, weight certificates, replacement and repair invoices, etc., are all great things to keep on hand in the event of a claim.

   In addition to obtaining as many pieces of documentation as possible to support your claim, it’s key to present everything to the carrier in a timely manner. You have up to nine months from the delivery date to submit a damage claim. For lost shipments, you have up to 9 months to file from the date it was estimated to arrive. Concealed damage claims are much more urgent – a claim must be filed within five days. So after receiving your delivery, be sure to unpack your shipments and check for hidden damage as soon as possible.

3. You didn't attempt to mitigate the damages

   Even if the carrier takes responsibility for the damages caused to your freight, they are going to fight to pay the least amount possible. It is important to show that you have attempted to mitigate and lessen the effect of these damages as much as possible. Carriers are likely to want to know whether you attempted to salvage the shipment. Were you able to have the broken or missing items repaired or sold at a discount, if possible? It’s important that the proper commodity, nature of the damage, replacement costs, and potential loss of business are accurately represented to determine the full extent of loss.

   The carrier has the right to inspect the damaged shipment as part of the freight claims process. So, it is very important not to dispose of damaged freight, unless storing it poses a threat to safety or health, such as with hazardous materials or spoiled food items. If this is the case, the carrier must be notified as soon as possible so they can act on inspecting the freight if need be. Preventing them from the opportunity to do so can result in an immediate denied claim.

4. You haven't paid your freight bill

   The last thing you might want to do is to pay a carrier for a shipment that they damaged during transit. However, it is important to be current on your invoices if you are submitting a freight claim. If you owe the carrier in freight charges, either for past due invoices or for the damaged load, you’re likely to get denied for a payout. Even if you do get approved, the reimbursement process may be drawn out or even amended to a much lower amount due to the total charges you owe the shipper.

   The most important thing to note is that accidents and damages happen, despite the best of intentions. Paying your freight bill on time, even if a damage claim will be submitted, is a sign of good faith and can help maintain a working business relationship with a carrier who otherwise serves your business well.

5. You've signed for a clear proof of delivery

   If you take one point away from this list of tips, let this be the one: remember to inspect your shipment before signing the proof of delivery (POD). This document acknowledges the arrival of the load to the point of delivery. By simply signing this document and allowing the driver to continue on his way, you are stating that it has delivered free and clear without any loss or damages.

   Smart shippers note: this is your opportunity to review and inspect your shipments carefully and note any discrepancies on the POD. Open boxes and check for concealed damages or loss. This is especially important if you have multiple pallets, crates, or shrink-wrapped items. Make sure what you have matches the BOL. If your BOL shows two shrink-wrapped pallets of stacked boxes, but the total piece count is off, make sure you note those missing items. Otherwise, a carrier can claim they delivered “two pallets” as stated on the BOL.

   If you are the shipper, make sure your delivery location knows the importance of these procedures. It is on them to take pictures, note discrepancies, and challenge the carrier accordingly at the point of delivery.

   If you’re not prepared, it’s much more likely that your freight claim will get denied. Use the checklist below to make sure you’re in a position to get the payout you deserve.

The bottom line

Freight damage is frustrating, time-intensive, and expensive. While it’s reassuring that you can submit a claim with the carrier in order to recoup your losses, it’s important that you are thorough in the information you provide. The more you know about freight claims, the better prepared you are when going to bat against the carriers.

Carriers have more power than ever, which means it’s increasingly important that shippers find ways to make their load more appealing than the next guy’s. Becoming a “shipper of choice” is a great way to get a leg up and ultimately get better access to capacity and reasonable freight rates.

How did we get here? The tight capacity freight market
It's basic economics – the demand for freight services is higher than the current supply of tractor-trailers and drivers. This has been the trend over the past several years, due to a number of factors. For starters, there is a driver shortage. The appeal of the open road isn’t what it once was, and not enough qualified drivers are entering the workforce to make up for those who have left or retired.

On top of that, there has been an increase in regulations that have put some constraints on carriers. Hours of services (HOS) rules dictate that truckers can’t drive more than 11 hours a day in a 14 hour period, and thanks to the electronic logging device (ELD) mandate, enforcement of that rule is harder to get around. As a result there are less trucks available to move your freight. Carriers hold the cards and can be picky about the loads they want and what shippers they’ll work with.

What is a shipper of choice?
Becoming a shipper of choice means that your load, your location, and your business practices are in line with what carriers consider desirable. They want to make sure that they’re protecting their bottom line and not losing precious time. This is a status that is achieved by showing carriers respect and committing to a long term strategy that enables best practices.

Why you should care about becoming a shipper of choice
Being a shipper of choice will help you secure a truck at a competitive rate when you need it most. It used to be true that having a large volume of freight is what makes a shipper desirable to carriers. While that often doesn’t hurt, it’s not enough anymore. If you have a great deal of freight but constantly create headaches for your drivers, they will likely turn elsewhere for business or charge you more.

Carriers are becoming savvier when evaluating whether they should work with a shipper or not. Think about how you use apps like Yelp. It’s now incredibly easy to see if a restaurant has bad service or isn’t worth the cost. Truckers have apps like Dock411 that help them easily communicate and access information about load/unload time, parking, security, dock conditions, and more.

How to become a shipper of choice
Reaching shipper of choice status is not something that you can do overnight. You need to commit to making long term changes that are advantageous to both you and your carriers.
Here are a few ways you can achieve this:

1. Avoid detention time at all costs.
   The last thing you want is to get a reputation for holding up drivers. To them, time is money and it’s important to show that you respect that. HOS rules and the way drivers’ time is strictly tracked through ELDs means that every minute they’re waiting at your dock is taking away from the time they could be earning on the road.

   According to a survey conducted by DAT, most carriers consider detention a serious problem and the majority of them rank it in the top five challenges facing their business. Making sure you’re able to load or unload within the 2 hour window is a good way to keep your driver happy and be a shipper of choice.

2. Be flexible with pick-ups and deliveries.
   When you require a strict appointment time, truckers can’t maximize their time on the road. Also, limiting your hours to weekdays forces drivers to travel during the most heavily trafficked times. By opening up options for your carrier, you increase the chances of your load being covered. And when you make this the rule, rather than the exception, you’re more likely to become a shipper of choice.

   In lieu of strict appointments times, you could request pick-up or delivery by a particular day and allow for early arrival. If that doesn’t work for you, you might consider moving from appointment times to a window of time. Being open on off-peak hours and during the weekend also will open up your access to capacity.

3. Provide parking options.
   Thanks to the HOS rules and ELD mandate, drivers have to be efficient at managing their time. However, as you know, there are a number of factors that can cause them to be tied up including traffic, roadside inspections, and maintenance. If they hit their hours while at your dock, it can be a major risk for them to drive to the next available rest stop.

   Allowing drivers to park at your location or having an option nearby can be a major plus. It also shows that you care about the challenges they’re up against. While this may fall more in the “nice to have” category, having parking available could make the difference when carriers evaluate if they want to cover your load over another shipper’s load.

4. Make sure your location is safe and easy to access.
   One major component that carriers take into account is ease of access. There’s nothing worse than arriving at a location that doesn’t have sufficient space for a truck to maneuver easily or has hazards that make it difficult to navigate.

   You might not be able to change where you’re located, but shippers of choice will make it a point to eliminate any potential obstacles they can. It’s also important that you provide clear signage that can help direct the driver appropriately when he/she arrives.

5. Treat your drivers the way you would want to be treated.
   Truck drivers don’t have an easy job, and they spend a tiring amount of time on the road. If you deny them basic amenities like access to a bathroom and a place to stretch their legs while they wait, that is not something they’re likely to forget.

   Showing respect and being kind goes a long way. Greet your drivers and provide an area where they can relax and refresh while being loaded or unloaded. Some shippers are even providing full lounges designed to make drivers as comfortable as possible, with wifi, refreshments, and showers. You can’t be a shipper of choice if you aren’t willing to show a little bit of empathy for your drivers.

Next steps
Now that you know what it means to be a shipper of choice, why it matters, and how you can achieve it, the next step is create a plan. Carrier relationships are incredibly important in today’s freight market, and when you make them a priority, you’ll benefit your business in the long run.

PartnerShip maintains strong alliances with the best carriers in the industry. Our shipping experts can help you find ways to become a shipper of choice, gain access to capacity, and save on your freight rates. Contact us today to find out how you can ship smarter.

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

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

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

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



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


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


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


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


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


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


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


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

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