Your Essential Guide to the 2026 FedEx and UPS Rate Increases

November 7, 2025 at 11:23 AMLeah Palnik
The essential guide to the 2026 FedEx and UPS Rate Increases

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 

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: 

If all of those numbers, tables, and fine print have you overwhelmed, you're not alone. But there are some key takeaways:

  • The minimum charge for both carriers is increasing from $11.32 to $11.99. 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 $11.99 instead.   
  • UPS is changing the list of zip codes for the Delivery Area Surcharge, following the mid-year adjustment FedEx made to its list in June. Depending on where you’re shipping, you could get hit with a Delivery Area Surcharge on a shipment that it didn’t apply to in the past. On top of that, UPS will be changing the list of zip codes aligned to certain zones. This means that your shipments could be rated based on a more expensive zone. It’s changes like these that can make budgeting for your annual cost increase very challenging.
  • The surcharges for Additional Handling and Oversized/Large Packages will now apply to more shipments than before, thanks to changes to the criteria. Starting in January, these fees will be triggered not just by length and girth, but now also by cubic volume. The shape and volume of your package, rather than just its longest sides, will now determine if you get hit with these surcharges.
  • Fees for larger, more difficult-to-move packages continue to rise to hefty prices. These fees are already very costly, and in 2026 they're rising higher than the announced average. A fee for an oversized, large package could cost you up to $331 - an increase of over 8%.   
  • Many other common surcharges are increasing by more than the 5.9% GRI, including Delivery Area and Residential surcharges.
    Common FedEx and UPS Surcharges

How the FedEx and UPS rate changes will affect your costs in 2026

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. And in 2026 these fees will apply to more shipments than before. 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 an e-commerce business. The cost of delivering packages directly to consumers continues to rise at rates that are higher than the average. Between high increases on two-day Express/Air services and increases to residential surcharges, e-commerce businesses will continue to get squeezed.   
  • 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. 

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. 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. PartnerShip offers extremely competitive parcel rates that help businesses reduce shipping costs by an average of 20%. Request a quick rate comparison to see how your current pricing stacks up and where you can start saving.

Wrapping your head around all of the changes for 2026 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.   

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Keys to Success for Vendor Compliance and Inbound Shipping

October 24, 2025 at 1:49 PMLeah Palnik
Keys to Success for Vendor Compliance and Inbound Shipping

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

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

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

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

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

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

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

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

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

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

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

How to Use Routing Instructions for Better Inbound Management

September 3, 2025 at 10:20 AMLeah Palnik

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.

The Best Ways to Become a Shipper of Choice and Why it Matters

July 16, 2025 at 9:20 AMLeah Palnik
The best ways to become a shipper of choice and why it matters

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.
How to become a shipper of choice 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.

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What are Accessorial Charges? A Guide to LTL Freight Fees

June 24, 2025 at 11:31 AMLeah Palnik

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. 

A Practical Guide to Parcel Shipping Rates

June 1, 2025 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

Uncovering the Top 5 Benefits of Regional LTL Freight Carriers

May 4, 2025 at 1:00 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.

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

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.


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

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

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

Understanding the UPS Strike

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

Implications for Small Businesses:

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

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

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

Protecting Your Supply Chain:

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

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

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

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

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

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

From Disruption to Resilience

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