If you haven’t heard yet, FedEx announced a mid-year rate increase by 6.9% on July 9th, 2012. This rate increase is not uncommon, happening already at the beginning of the year with rate increases from both major carriers. However, the question that is sure to appear on many people’s mind is how this rate increase will affect their business. In past years, these rate increases heavily affected such elements as accessorial charges, making businesses pay a substantial amount more for the same amount of shipping. Here are a few tips to prepare your business for the impending changes and to possibly reduce your shipping costs instead:
One of the first moves you’ll most likely want to make is to check how the rate affects your current shipping. An important note is to make sure you aren’t just basing your analysis on applying the rate increase to your current shipping costs. You’ll want to look at your historical and anticipated shipping volume and characteristics to best figure out the impact the rate increase will have on your overall costs.
This rate increase is also a great time to conduct a great carrier rate comparison to see what opportunities may lie with others. If either the comparison or rate impact showcase a margin of opportunity for discounts and incentives, your business should consider starting a negotiation with the carrier before the rate increase begins. In this way, your new shipping costs will be set without any hassle when the change occurs.
Source Consulting is ready to help your business prepare against the forthcoming rate increase. With an experienced staff of former carrier employees and the latest technology to help compare rates easily and quickly, Source is ready to help you reduce your shipping costs and prepare for the upcoming rate increase with precision and ease.