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Main takeaways from the UPS General Rate Increase of 2022

by BlogSpend Management

UPS General Rate Increase for 2022 will affect businesses. So, know the new surcharges announced by UPS.  Further, find out how to minimize shipping costs.

It’s that time of the year again! The time when different parcel carriers announce an increase in their shipping rates. Incidentally, UPS has announced its General Rate Increase (GRI) some time back. In addition, UPS has also made changes in surcharges and fees. This article will explore UPS GRI, new changes, and its impact on businesses. Also, we will discuss the ways to minimize the overall shipping costs due to UPS GRI.

What’s new in UPS GRI 2022?

Shipping carriers like UPS announce their annual General Rate Increase. According to the UPS notification, UPS GRI will be effective from December 26, 2021. There is an increase in shipping rates for UPS ground, air, and international services to around 5.9%. Parameters like the weight of the packages, zones, and zip codes are part of the rate increase. Some of the UPS services like:

  • UPS SurePost services
  • UPS 3 Day Select services
  • UPS Next Day Air Services

seems to show a marked increase in shipping rates.

In addition to the rate increase, there have been changes in surcharges too.

Changes in accessorial fees and surcharges

UPS GRI does not include the fees and surcharges which have seen an increase. The surcharges include:

  • Peak Surcharge

It is also known as a demand surcharge. When the demand for shipments is more at the peak time of the year, UPS charges more.  But, for 2022, a peak surcharge has been introduced for international packages shipped to and from the United States. The shipped packages will be charged based on the weight and at different service levels. In addition, this surcharge also applies to UPS domestic shipments such as  UPS® Air Residential, UPS® Ground Residential, and UPS SurePost® Packages.

  • Value-added Services and other charges

UPS has increased the charges for additional handling of packages based on weight and dimensions. In addition, large package surcharges are also rising in 2022. On the other hand, minimum charges for packages between 1 and 5 lbs are also set to rise. Further, shipments to remote areas will see an upward rise under US48 Remote Area Surcharge (RAS). UPS has added a delivery area surcharge due to the population rise in some zip codes. The RAS includes additional zip codes in the delivery area. For example, package delivery to Hawaii will cost $1.35 more in 2022.

  • Fuel surcharge

Like all other parcel carriers, UPS has altered the fuel surcharges. The U.S. Ground and Air Services will see the change due to fuel surcharges. Fuel surcharges change without initial notice to consumers. The fuel surcharges apply to transportation charges and other charges such as Delivery charges, pickup charges, Saturday delivery and pickup, and more. For further information on fuel rates, click here.

Impact of GRI on businesses

GRI is declared by parcel carriers annually. In addition, the surcharges also increase exponentially every year. In such circumstances, shippers need to either bear the expenses or pass on the extra costs to the customers. It leads to shopping cart abandonment by many customers. The impact of GRI on businesses like furniture, home goods, etc., is massive. The shippers need to find a way around it. Alternatively, shippers need to renegotiate the carrier agreements with the parcel carriers. Parcel audit companies like Audintel advise businesses about the impact of GRI and surcharges. We, at Audintel, read the fine print of the contracts so that shippers get a fair deal.

How does Audintel minimize the overall shipping costs due to GRI?

Each business has its shipping attributes and profiles. Audintel studies the different aspects of each business shipment and its shipping needs. We guide shippers in negotiating with shipping carriers regarding discounts and the impact of GRI. So, any change in GRI and surcharges reduce the effect on our customers. Our team of experts guides businesses in selecting alternative parcel carriers and service levels to minimize the GRI impact. For instance, if our customer finds UPS Select Services expensive, we recommend alternate cheaper services provided by competitive parcel carriers.

To Summarize

UPS GRI 2022 has brought many changes in the shipping rates and surcharges. These changes make a tremendous impact on the shipping costs of businesses. E-commerce retailers get alert about the general rate increase from the corresponding carriers. They can avoid the impact on their businesses by making quick decisions. Shippers partner with parcel audit companies like Audintel to balance their shipping costs. Our team negotiates on behalf of businesses to get favorable carrier agreements. Shippers save money and time with the advice given by the experts of Audintel. For further information about GRI and other issues, contact us at [email protected]. You can also visit our Audintel website or call us at +1 (619) 354 8539.

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FedEx Rate Increase 2022 – Impact on your business

by BlogSpend Management

With the year 2021 drawing to a close, businesses are preparing their budget for 2022. Did you know that the yearly shipping rates offered by carriers have seen an exponential increase? FedEx announced the rate increase for 2022, and it is not the same as before. Here, we will discuss the FedEx rate increase for 2022 and its impact on business. Further, we will explore how small parcel audit services help shippers save money despite the rate increase.

General Rate Increase by FedEx

Initially, we need to discuss the concept of a General Rate Increase (GRI). A GRI denotes an increase in shipping rates applied by the shipping carriers. According to US regulations, a shipper has to receive notification of a new GRI at least 30 days in advance. Since 2013, the GRI yearly increase was about 4.9%. However, for 2022, parcel carriers like FedEx and UPS have increased the GRI by an average of 5.9%. The hike is due to the high demand for e-commerce shipments. The parcel carriers are spending more to transport small parcels and freight.

Ways to handle GRI with audit intelligence

Shippers prepare their annual budget early with the announcement of the new GRI. Partnering with small parcel audit services like Audintel helps shippers understand their shipping profiles. The different aspects of a business’ shipping profile include

  • the type of services
  • weight of packages
  • dimensions of packages
  • pick-up and delivery locations
  • surcharges.

Audintel helps its customers identify the specific aspects of the shipping profile that need consideration. For instance, customer X ships products through FedEx Ground service. Our role is helping customer X receive discounts on fees and surcharges, specifically for FedEx Ground service.

Contrasting features between GRI and Surcharges

GRI involves an increase in the shipping rates for a long time. For instance, GRI was about 4.9% since 2013. Further, surcharges are the additional top-up costs for a specific service, zone and have a short timeline. The change in global demand and supply of goods affects GRI. Surcharges vary with each shipment and may change randomly. For example, an additional handling surcharge is not for every shipment.  The surcharges may differ for each shipping carrier.

FedEx Rate Increase of 2022 and its impact on businesses

FedEx announced FedEx Rate Increase for FedEx Express, FedEx Ground, and FedEx Home Delivery services from January 3, 2022.  The increase is for domestic, export, and import Services. This rate increase of 5.9% does not include surcharges and other fees of the shipping carriers. The rise in shipping rates, new surcharges, and fees impact businesses. As a consequence, shippers have to adjust their annual budget or pass on the extra expenses to the customers. Alternatively, shippers can balance out their shipping costs to some extent by using the software solutions offered by audit services.

FedEx surcharges of 2022

FedEx surcharge increase is different for each shipper, based on the corresponding agreement.  The fuel surcharge is in effect from November 1, 2021. It is due to fluctuating fuel prices and the rates calculated by the oil companies. Similarly, there are surcharges such as Additional Handling Surcharge, Delivery and Returns surcharge, and many more. The surcharge increase is by zone as well as by weight. For instance, the Oversize surcharge by FedEx US express/ Ground in zone 2 has increased by 4.76%. For further information about FedEx’s surcharges and fees, click here.

How can Audintel help shippers?

Audintel analyzes the data and the kind of packages shipped by the clients. Our team studies the shipping patterns of shippers. Audintel recommends cost-reducing opportunities to shippers. We help our clients receive discounts on surcharges and fees from the parcel carriers. In addition, we negotiate or renegotiate the shipping contracts on behalf of our clients. Audintel also suggests alternatives to FedEx with cheaper regional carriers. In this way, we optimize shipping costs for our clients.

Conclusion

When expenses rise, we often wonder whether we can afford them. Similarly, the FedEx rate increase has made shippers think about their shipping costs. Audintel explains complex carrier agreements to our clients so that they get the best rates. We help businesses negotiate their shipping contracts effectively and save money. Our experts help shippers optimize their shipping spend. We have the best audit services to manage shipping costs. For further information about FedEx General Rate Increase (GRI), contact us at [email protected]. Learn about us by visiting the Audintel website or call us at +1 (619) 354 8539.

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How do small parcel audit services benefit businesses?

by BlogSpend Management

Shipping companies lose money when they are unaware of their shipping data. Shipping couriers take undue advantage of this situation. In the past few years, parcel audit companies, are a boon for businesses.

They monitor the mistakes made by couriers. In this blog, we will discuss the affordable services of parcel audit companies. And their impact on shipping businesses.

Parcel audit services save money

Small parcel auditing identifies the errors made by shipping carriers. Companies save money as audits track surcharges, rates, and discounts offered by carriers. So, for instance, the recent introduction by FedEx of a 6% late payment fee. Companies can avoid this fee by paying their invoices on time. Or by reporting the error in adding this fee. Parcel audit firms like Audintel update their clients about new fees, surcharges, refunds, etc.

Benefits of parcel auditing services

Parcel auditing services reduce the transportation expenses of its customers. Shipping companies receive information on the total spend of each package shipment. Parcel audit firms like Audintel use state-of-the-art software to give information to shippers. Parcel audit services run diagnostics on a customer’s small parcel shipments. There is a check of each shipment for its service performance. In addition, audit experts advise shippers on any inaccuracies in carrier services.

What are the service areas that are a part of an audit?

Shipping carriers make mistakes that need to be kept in check. Different services of the parcel carriers are a part of the audit checklist. The main checkpoints that are a part of audit services include:

Late Delivery

It is the delivery of a small parcel shipment beyond its scheduled delivery time. As a consequence, shipping carriers have to give refunds to businesses. Parcel carriers do not provide automatic refunds. Companies have to request a refund. Parcel auditing services identify the mistake of parcel carriers and request a refund on behalf of companies.

Address Corrections

Parcel carriers charge for address corrections that are not needed for example, shipping carriers declare a change in the apartment number as address correction, even though the location is the same. Parcel audit services identify the invalid address correction charges. The carriers get notifications to rectify their mistakes.

Duplicate Invoices

Billing a package more than twice is one of the problematic areas of shipment. It becomes easy to audit every invoice with parcel audit services. Audit services identify duplicate invoices at a glance. As a result, shipping companies save money with parcel audits.

Voids

Shippers create shipping labels for shipments. However, shippers cannot edit the shipping labels. They have to void the existing shipping labels to create a new shipping label. Shipping carriers such as UPS charge companies for unused shipping labels. Parcel audit services track the unused shipping labels, void the shipments, and receive refunds from the shipping carriers.

Saturday Pickup and Delivery Audits

Parcel carriers charge more for Saturday Pickup and Delivery of packages. If the shipping carriers do not deliver the package on Saturday, they have to refund the amount. Similarly, the absence of services for Saturday PickUp leads to refunds from carriers. Parcel auditing tracks the refunds for deficiencies in carriers’ services.

Dimensional Weight

Shipping carriers incorrectly weigh packages and charge for high dimensional weight. Parcel auditing protects shippers from wrong dimensional weight charges. Parcel audit services ensure that businesses have accurate data to save money.

Incorrect Rate/ Discount

Shippers are given invoices with inaccurate rates. These rates are not the same rates during carrier contract negotiations. Parcel auditing identifies the wrong rates and asks for revised shipping invoices with the actual rates. In addition, shipping companies receive discounts for shipping packages from parcel carriers. However, shipping carriers do not apply discounts to these packages resulting in more money spent by the shippers. Audit services rectify the discount errors and request refunds for shippers.

Residential Address audit

For instance, when companies send parcels from one location to another commercial address- the parcel carriers may consider it as residential. Subsequently, the charges for residential areas vary. Audit services have the data to prove that the delivery was for a commercial location. In this way, audits hold the parcel carriers responsible for billing inaccuracies.

The Audintel Advantage

 Audintel has robust, intuitive auditing software that helps shippers save money. We provide interactive, easy-to-use dashboards and shipping reports to our customers. Audintel‘s clients get better data visibility with our dashboards. We give our clients updates about their shipments and service errors by carriers. Audintel gives accurate information about late deliveries to receive refunds from parcel carriers. We also provide affordable services that are on par with our competitors’ services. Businesses can lower UPS, FedEx shipping expenses by partnering with Audintel.

Wrapping it up

Profitable businesses need to have information at their fingertips. More so in the case of small parcel shipments. Partnering with Audintel, a parcel audit company, is beneficial for businesses. We provide shippers access to their data at no extra cost. Our team of experts guides businesses in receiving refunds from couriers. Shippers can trust us with their data, and we deliver on our promises. Get affordable parcel audit services at [email protected]. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.