For years, UPS and FedEx have announced the same general rate increase of 4.9%—since 2014. Now for 2022, it has risen to 5.9%.
A common mistake is thinking 5.9% will be a flat increase across the board. However, with complex pricing models making services, zones, and surcharges vary in percentage increases, it will likely be considerably higher if you are unprepared.
A second mistake is thinking the rate increase will be what it will be. The reality is if shippers aren’t using their data and business intelligence to reevaluate as often as necessary, they will overspend with every change made by their carriers.
Carriers use your shipping profile data to drive decisions that will directly impact your bottom line. It’s essential to also use your data to look critically at transportation spend for opportunities to save on costs.