As the calendar races to a close, small parcel shippers slide into high gear, preparing for the holiday shopping that makes up a majority of their annual revenue. Shipping costs take a big bite out of that revenue, and this summer’s changes to FedEx and UPS handling surcharges could significantly increase your freight spend.
As of June 1, 2016, both carriers reduced the size of packages subject to the handling surcharge. Previously applied to FedEx Ground packages between 60 and 108 inches long, the $10.50 charge per package will now apply to any package 48 inches long (to 108 inches). The surcharges will also apply to packages that:
- Measure more than 30 inches on the second-longest side
- Weigh more than 70 lbs
- Is encased in a metal or wood outer shipping container
- Is cylindrical.
In addition to the handling charge increases, UPS has announced a rate hike of approximately 4.9 percent taking effect on December 26, 2016. Which means that while the bulk of holiday shipping will be under the current rates, all the returns being processed will be higher.
With all these changes, it’s imperative for high volume small parcel shippers to take control of their shipping costs – and the sooner the better. Intelligent Audit’s small parcel shipping audit reviews 150 key audit points to identify past overcharges and prevent future errors. Request a risk-free test-run of Intelligent Audit’s small parcel audit, and find out how much you can save during the holiday rush – despite the carriers’ increases.