FedEx GRI 2025

FedEx GRI 2025: Review rates and strategize to save money

by BlogTSM

Trade disruptions globally are impacting the shipping industry. In addition, the three-day Gulf and East Coast port strikes are causing stress to shippers. As per the news, thousands of shipping containers were at the wrong ports. As a result, shipping carriers will take weeks to clear the cargo backlogs. The rise in inland transportation costs is due to trucking companies getting extra for round trips. The U.S. economy will be affected as U.S. seaports from Maine to Texas handle half of U.S. imports.

Shipping giants like FedEx have recently announced the annual rate charges for 2025. Further, with the upcoming holiday season, shipping charges are increasing rapidly. This article will examine the recently announced FedEx rates and surcharges for 2025. Moreover, we will give tips on how to lower shipping costs by reviewing the FedEx GRI of 2025.

FedEx GRI 2025

Shipping carriers announce the General Rate Increase (GRI) annually. It is the shipping price that shippers will pay for U.S. deliveries. It also includes imports into and exports from the country. FedEx package and freight shipping rates will rise from Jan 6, 2025, according to FedEx. Significant price hikes in FedEx Ground and Express services are visible. Further, the shipping surcharges are also increasing in 2025.

FedEx GRI is an average of the base rates and includes the operating costs, such as fuel and labor. These rates help FedEx Company be profitable and efficient. FedEx 2025 GRI will affect businesses based on the services and other factors affecting the shipment.

 FedEx has standard list rates that give information about the price for small packages weighing less than 150 lbs. for the different FedEx services. It also provides the shipping rates for packages for various shipping zones.

FedEx 2025 Rate Increase by Service & Weight

FedEx rates for packages under 150 pounds vary across services in the contiguous United States. These services (for zone 2) are:

  • FedEx First Overnight® – quick services for package delivery to businesses and residences the next day (by 8 am or 8:30 am).

The 2025 rate is $73.31, while the 2024 rate is $70.96 for a pound package.

  • FedEx Priority Overnight®- express services for package delivery to customers by the next day at 10:30 am to businesses and by noon to residences.

The 2025 rate is $42.31, while the 2024 rate is $39.96 for a pound package.

  • FedEx Standard Overnight®-services expedited for delivery to customers by the next day (5 pm to businesses and 8 pm to residences).

The 2025 rate is $38.55, while the 2024 rate is $36.41 for a pound package.

  • FedEx 2Day® A.M.- services for delivering packages in two business days (by 10:30 am to businesses and by noon to residences on the second day).

The 2025 rate is $28.72, while the 2024 rate is $27.12 for a pound package.

  • FedEx 2Day®- expedited services for delivering packages in two business days by 5 pm to businesses and 8 pm to residences.

The 2025 rate is $25.23, while the 2024 rate is $23.83 for a pound package.

  • FedEx Express Saver®- affordable shipment deliveries in 3 business days, by 5 pm to businesses and 8 pm to residences.

The 2025 rate is $22.95, while the 2024 rate is $21.97 for a pound package.

FedEx has increased the shipping rates for express overnight services by almost 3-4 dollars. Shipping expenses for package deliveries by the second day are higher at all the weights.  However, standard delivery options like FedEx Express Saver are more affordable for customers, even after three business days.

Similarly, U.S. package FedEx shipping rates to and from Alaska and Hawaii will rise in 2025. For example, FedEx First Overnight® services for a pound package from the contiguous U.S. and Hawaii to Alaska metro is now $145.80. It will be $153.26 in 2025. Also, it is for select ZIP codes only.

FedEx Rate Increase by Service & Zone in 2025

Alternatively, FedEx shipping rates vary based on the shipping Zones. There are eight shipping Zones within the contiguous U.S. for package deliveries. Zone 2 for FedEx shipment deliveries is for zip codes within 150 miles from origin. On the other hand, Zone 8 is for shipments 1801 miles or more from the package origin. The FedEx shipping rates increase when a package has to be delivered far away. For example, FedEx’s First Overnight 2025 rate is $73.31 in Zone 2 for a pound package. Further, it is $137.55 in Zone 8 for a pound package.

FedEx shipping services for the eight shipping zones within the U.S are expedited services such as

  • FedEx First Overnight®
  • FedEx Priority Overnight®
  • FedEx Standard Overnight®
  • FedEx 2Day® A.M.
  • FedEx 2Day® and

Standard services such as FedEx Express Saver®

Shipments to and from Alaska and Hawaii fall in shipping zones 9-16. The rates vary from the metro and rural regions. Third parties deliver shipments to select ZIP codes in remote areas. The shipment delivery commitment times also vary in some ZIP codes. For instance, the U.S. package rate from the contiguous U.S. to Hawaii Rural, Zone 12, for a pound package, is $ 157.36 for FedEx First Overnight® service. The package delivery time is for the next day by noon in select ZIP codes. The 2024 rate was $148.11 for the same service, Zone, and weight. It is close to a $10 rise. This rise in shipping rates will augment the overall shipping costs for shippers.

Minimum rates increase for FedEx shipping

FedEx package minimum charges are the lowest shipping costs required to ship a package. The shipping expenses will vary for each service. In the FedEx GRI of 2025 of FedEx Ground and Home delivery packages, the GRI increase will be 5.79%. For instance, FedEx Ground service for Zone 2 for 1 pound package is $11.32, in 2025 compared to $10.70 in 2024.FedEx Ground delivery services are affordable for businesses that want to ship packages in 1 to 5 business days. However, the shipping rates differ across shipping Zones and package weights.

See this link to learn more about the FedEx standard list rates.

FedEx shipping surcharges in 2025

FedEx surcharge rates are higher than the annual GRI rates. The shipping expenses vary based on the shipping zones, weights, dimensions, and packaging. Specific surcharges are more costlier for shippers than other surcharges. These specific surcharges include

  • Additional Handling Surcharge (AHS)- are fees levied by FedEx for packages that do not conform to FedEx standards. The 2025 rate for U.S. package services for Zone 2 is $28 per package by dimension. On the other hand, the 2024 rate is $22 per package by dimension. The increase is $6 per package.
  • Address Correction-FedEx levies extra fees for incorrect or incomplete addresses. For U.S. Package Services, and International Package Services, it is $24 per correction in 2025 and $22 in 2024.
  • Delivery Area Surcharge-FedEx imposes fees for shipments to select destination ZIP codes. The 2025 rate for U.S. Package Services (Commercial) is $4.20 per package, and the 2024 rate is $3.95 per package.
  • Oversize charges- fees levied by FedEx for packages exceeding in length, girth, and DIM weight. For example, the 2025 rate for U.S. Package Services is $205 per package  (Zone 2), while the 2024 rate is $160.
  • Residential delivery surcharge- delivering packages to residential addresses will cost more for shippers. For U.S. Package Services, the 2025 rate is $6.55 per package, while the 2024 rate is $6.15 per package.

These are a few specific surcharges among other surcharges for different services. Businesses will pay more for shipments if they have to ship heavy items and send them to distant places. Shippers will have to reconsider their shipping methods to decrease shipping costs.

 Audintel tips on shipping strategies to lower shipping costs

Businesses have to outline their shipping strategies to control shipping expenses. Audintel has the following tips for shippers to manage their shipping spend.

  1. Review your shipping requirements, including packaging goods, customer locations, etc.
  2. Collaborate with multiple shipping carriers
  3. Negotiate with carriers for discounts on surcharges and list rates
  4. Use shipping data analytic tools to identify shipping patterns and save money

Conclusion

Shippers are worried about the global strife affecting businesses. Further, FedEx’s GRI of 2025 has impacted the shipping expenses. The calculation of FedEx shipping rates for each package is complex. Advanced software tools can simplify the process and provide cost-saving opportunities.

Audintel has intelligent solutions that help shippers navigate the complexities of FedEx shipping rates. Our easy-to-use, customized dashboards can provide an in-depth analysis of managing shipping costs. Shippers who partner with us have no hassles in calculating the precise FedEx shipping rates and saving money. Contact us at +1 (619) 354 8539 to understand the impact of increasing expenses due to FedEx GRI 2025. Learn more about lowering shipping costs from our experts: Visit our Audintel website.

Transportation Spend Management Visibility

Transportation Spend Management visibility to manage costs

by BlogTSM

E-commerce logistics is growing exponentially. The global e-commerce logistics market will increase to 770.8 million euros by 2026. Moreover, last-mile delivery solutions (60%) will dominate the USA e-commerce logistics market. Supply chain efficiency helps businesses excel at e-commerce logistics. In other words, e-commerce businesses ship their goods to customers economically. It also involves faster delivery of goods to customers.

Modern technology helps supply chains track payments and vendor management. Transportation Spend Management solutions improve delivery performance, reduce costs, and enhance customer experience. Businesses can avoid operational risks with transportation spend visibility. This blog will explain why Transportation Spend Management visibility is crucial for businesses.

Enhanced Visibility with Transportation Spend Management

Managing transportation costs is necessary for all businesses. Data analytics and reporting allow shippers to make data-driven decisions. Technologies like Machine Learning(ML) and Artificial Intelligence (AI) help understand Transportation Spend Management. For instance, invoice line-level details allow shippers to stay on top of hidden charges.  Further, companies can monitor the carrier’s performance by in-depth data on late deliveries.

Transportation Spend Management (TSM) systems enhance the visibility of Shipping Spend.

For example, any changes in the demurrage fees can increase shipping costs. Automation in areas like data entry and keeping records can improve shipping processes. TSM  tracks expenses in real time so that businesses can adjust their budgets. Further, automated parcel audits can identify and recover overpayments. Customizable shipping reports give a transparent view of the shipping spend.

In addition, Transportation Spend Management provides visibility to complex supply chains. Continuous monitoring of shipments across the entire supply chain can transform shipping operations. Transportation Spend Management tools can enhance the shipping logistics of businesses. TSM visibility can reduce shipping costs by detecting unnecessary spending. Furthermore, companies can improve their shipping operations by leveraging freight spend visibility.

Benefits of Freight Spend Management

Freight spend analysis provides insights into ways of saving money. Invoice processing and analyzing shipping carrier rates are part of freight spend visibility. Shippers can learn about spot freight rates, contracted freight trends, etc. Important information about different data points is available through detailed shipping reports. These reports are customizable so that various departments in the supply chain can view the data effortlessly.

Freight shipping costs help companies measure the cost-effectiveness of their transportation system. In addition, freight auditing processes provide freight bill accuracy. Freight bills contain fuel surcharges, weights, exchange rates, etc. Inaccuracies in freight bills can hamper a company’s bottom line. Auditing freight bills give companies a clear picture of their transportation revenues. Moreover, shippers get insights into freight spending by analyzing the kind of shipping carriers and their budgets.

Freight spend management gives an overview of the shipping expenses and budgets. It involves Freight bill auditing and payment of freight invoices. In addition, an overview of global supply chain management is possible. Shippers make informed, strategic decisions with the help of freight spend visibility. Further, adopting warehouse management systems optimizes freight spend management.

Warehouse Management System and Transportation spend visibility

Companies can manage and control their daily warehouse operations through software. It is the Warehouse Monitoring System (WMS). It can delve into a company’s inventory in real time. Tools like advanced robotics, RFID labeling, bar code scanning, etc., and WMS help streamline warehouse processes. Real-time inventory visibility gives a view of the goods in the warehouse. It improves traceability, which is very useful in case of a recall.

WMS helps improve order fulfillment, quicker deliveries, and reduced wait times at loading bays. Moreover, accurate inventory data allows businesses to optimize their storage and picking processes. It is essential to correct supply chain inefficiencies to reduce costs. Shipping from warehouses involves high transportation costs. TSM monitors shipping costs. Data analytics helps streamline logistics operations. It can monitor logistics KPIs in real time and help businesses make proactive decisions. Transportation spend visibility aids companies in optimizing shipping operations.

How user-friendly data analytics help Transportation Spend visibility

Data regarding accessorial charges, shipping rates, dimensional weight of packages, etc., is analyzed. Automated real-time analytics provides information to companies. Data visualization presentation through user-friendly digital platforms allows shippers to reduce shipping costs. Customized, user-friendly dashboards, widgets, and visualizations refine raw data into actionable information. Using the data, shippers can detect anomalies and correct them. Thus, shippers can reduce transportation costs with the help of advanced technologies.

Further, Business Intelligence (BI) tools transform shipping data and optimize business shipping operations. Powerful BI tools can create interactive dashboards and shipping reports. These easy-to-use dashboards give visual representations of data in the form of graphs. Shippers identify data inefficiencies and make improvements in some areas. Further, they can improve customer service and reduce shipping costs using data analytics.

Increase Transportation spend visibility with Audintel’s TSM services

Data visibility helps shippers optimize and reduce risks in their supply chain. Shippers get relevant information about their shipping costs with Audintel’s technology solutions. Audintel’s Transportation Spend Management (TSM) services encompass freight audit services, which optimize client productivity. Our Business Intelligence tools ensure carrier invoice processing and payments are on time. Shippers can easily visualize data with our compelling shipping reports.

Audintel enhances TSM visibility through TSM services like freight audit and spend intelligence. We ensure accurate freight bill payments and uncover potential savings. Shippers can visualize their freight spend and plan their shipping expenses. Our cloud-based solutions reduce shipping costs by providing better control over supply chain processes. In addition, our freight audit services eliminate overpayments and maximize freight savings. 

Shippers benefit from apt advice from Audintel’s team of experts. The team compares multiple shipping carrier contracts and aids in Carrier pricing negotiations. Our staff helps companies with claim refund procedures. We leverage data so that companies can optimize resource allocation and logistics spending. Our dashboards provide customers with precise delivery updates, thus increasing customer satisfaction.

Finally

Achieving transportation spend visibility is complex and challenging. Handling vast amounts of data and analyzing it requires advanced technology. Transportation Spend Management provides real-time visibility of shipping expenses. Shippers can increase their revenue with Transportation Spend visibility. Controlling shipping expenses and reducing accessorial costs is possible with supply chain visibility.

Shippers can request a strategic analysis of their supply chain from service providers. Audit specialists at Audintel help shippers analyze shipping data analysis. Shippers can make informed decisions with shipping information. Further, companies can get cost-effective solutions for supply chain disruptions. Shippers will understand where their money goes.  It thus provides opportunities for companies to grow their business.

The intuitive, agile platform of Audintel helps shippers improve transparency in shipping operations. Our powerful data analytics enables cost savings for clients. In addition, our intelligent dashboards and benchmarking services benefit shippers. We help shippers optimize their shipping budget and keep costs down.  Audintel’s proven operational model on TSM can transform your shipping operations.

To learn more about our Transportation Spend Management services, contact us at +1 (619) 354 8539. You can visit our Audintel website for more information about our services.

What is Transportation Spend Management

Transportation Spend Management: What is its significance?

by BlogTSM

U.S. businesses are troubled over the shipping disruptions due to re-routing from the Red Sea. Further, the drought in the Panama Canal is increasing the freight rates. In addition, it has caused a significant impact on global maritime freight transit time. U.S. container import volumes increased in March 2024 by 0.4% from February. Moreover, the air cargo market has grown to 11% in February, compared to the same month in 2023.

Shippers are finding it expensive to ship products through air freight. So, U.S. retailers are trying various tactics for building resilient supply chains. These tactics include carrying more stock and focusing on nearshoring. Shippers are sourcing their suppliers closer to their markets. In addition, the retailers are giving less discounts. As per reports, discounts of U.S. retailers’ have averaged 39% in 2024 compared to last year.

Apart from these tactics, businesses can use technology to reduce transportation costs. Advanced software helps to streamline transportation spend. This article defines Transportation Spend Management and its significance.

Definition of Transportation Spend Management

It is a robust approach to managing transportation spend. Transportation Spend Management  (TSM) includes tracking and analyzing data. It helps to cut shipping costs and improve customer service.

Cloud-based transportation management tools offer real-time visibility to businesses. A comprehensive view of parcel and freight costs helps manage shipping expenses. Further, it monitors shipping operations and detects areas of excess spending.

Transportation Spend Management provides an affordable, streamlined way to improve supply chains. Automation aids in sorting through large amounts of data efficiently. In addition, it helps in optimizing shipping data analytics, freight audit and payment processes, and more. Business Intelligence (BI) processes can assess the performance of shipping operations. Further, Artificial Intelligence (AI) tools integrate data to give insights into transportation costs.

Transportation cost visibility

Transportation costs are expenses related to all aspects of handling goods. These include costs encompassing loading and unloading of goods at the start and the final destination and trans-shipment. Further, the costs cover labor, fuel, employing infrastructure, vehicles, and more. Some factors that impact shipping spend are delivery route location, mode of transportation, shipment size, etc.

Businesses need a clear view of the expenses associated with their supply chains. The costs of each shipment have to be understood. These costs involve freight costs, logistics costs, and landed costs.

–Freight costs measure the amount spent on freight shipping.

–Logistics costs provide an assessment of the costs related to logistics. It includes procurement, physical labor, storing and transporting goods, etc.

–Landed costs cover the total costs from the product production to delivery.

Companies use TSM to gain clarity on their transportation costs in real-time. Tools like Freight Audit and Payment (FAP) systems can analyze data in TSM.

Striking features of Transportation Spend Management (TSM)

TSM resolves the complexity of transportation spend. It simplifies shipment options and complex shipping carrier contracts.

Some chief features of TSM are:

  • Organizing Data with Predictive Analytics

Shippers can automate tedious processes by leveraging big data and analytics. Data-driven supply chain management allows companies to remain competitive. Various data points for analysis are vendor data, inventory, invoice information, etc. Further, predictive analytics analyses historical data with real-time information. It accurately forecasts demand and manages capacity. Route optimization also lowers transportation costs and ensures timely deliveries.

Advanced algorithms streamline the raw data into actionable, meaningful insights. Shippers view the data in the form of easy-to-use dashboards and widgets. In addition, shipping reports give a clear picture of the transportation spend. Companies focus on ways to manage shipping costs with a good customer experience.

  • Standardizing audit processes

After transportation data analysis, an in-depth audit of invoices is essential. A freight or parcel audit closely studies freight or parcel carrier contracts. Companies can get money from service failures, refund claims, and more. Automating the matching of freight invoices and validation reduces errors in billing. It ensures on-time payment and improves vendor relationships.  

Companies reduce errors and streamline operations by standardizing audit processes. Further, it enhances operational efficiency and increases profits for companies.

Supply chain spend analysis with TSM

Analyzing procurement expenses to decrease costs and increase efficiency is spend analysis. In supply chain management, spend analysis boosts ROI. With the right technology, shippers can reduce supply chain costs. The spend analysis process involves data gathering and normalization, categorizing vendors, etc. Businesses have to identify cost-saving opportunities when negotiating with suppliers.

Partnering with 3PLs, shippers can make strategic decisions. Shippers can reduce shipping costs by

-Centralising the procurement process

-Managing vendor inventory efficiently

-checking inaccurate pricing by suppliers

-Eradicating duplicate orders

-Consolidating orders,

and more.

Transportation Spend Management (TSM) empowers businesses in shaping optimized supply chains. A cloud-based TSM leverages data from across supply chains and anticipates disruptions before they occur. Collaborating with supply chain stakeholders reduces supply chain bottlenecks. Further, it aids in developing a cost-effective, high-performing supply chain.

Benefits of Transportation Spend Management

Companies get numerous benefits by using TSM. Some of the benefits include

  • Improve supply chain efficiency with real-time monitoring
  • route optimization to reduce fuel costs and improve on-time delivery performance.
  • streamline shipping operations to save time and resources
  • improve customer service with accurate, real-time information on the shipments
  • Optimizing logistics processes with data-driven analytics in real-time

 and

  • user-friendly intuitive dashboards customized for businesses.

Transportation Spend Management uncovers savings from freight audits. Freight Bill Audit Services and Payment Solutions ensure accurate freight bill payments. Freight spend management provides complete transportation visibility. Freight spend gives insights into carrier allocation, budgeting, and benchmarking. It identifies new potential shipping carriers with reduced transportation costs. Freight spend management solutions can lower complex freight expenses.

Manage transportation spend with Audintel TSM Services

Audintel Transportation Spend Management services manage shipping expenses effectively. Our cutting-edge software solutions optimize shipping operations. We give accurate information about transportation costs. Our cloud-based tools give shippers better control of their supply chain processes. Audintel’s state-of-the-art TSM services process carrier invoices and make prompt payments. It helps shippers build strong relationships with shipping carriers.

In addition, Audintel-integrated SaaS TSM increases the transparency of shipping spend. Companies get accurate information on their transportation data in real time. Our consulting and technology services help businesses make informed decisions. We have experts who have worked for leading shipping carriers. They have in-depth knowledge of the intricacies of carrier negotiations. We help in managing carrier contract negotiations with ease.

Audintel TSM services encompass freight audit solutions, optimizing shipping costs, and managing transportation expenses with spend intelligence tools. In addition, we have intuitive, user-friendly dashboards giving insights into the entire shipping operations. Shippers have customized dashboards that suit their business needs. We have a dedicated staff to augment the back-office operations of shippers. Companies partnering with Audintel can manage transportation expenses with enhanced savings.

Conclusion

Businesses need to keep pace with the demands of a dynamic global economy. Logistics spending can make a significant impact on the budget. Shipping rates and surcharges can increase transportation expenses. Technological solutions in the form of Transportation Spend Management can bring shipping costs under control.

Effective Transportation Spend Management provides visibility to supply chain operations. Automating data and analytics gives shippers an account of their expenses. Companies partner with a transportation spend management provider for their business needs. Shippers can choose a TSM provider based on their technological and industrial experience.

Audintel Transportation Spend Management services offer a data-driven approach to optimize shipping operations. We reduce transportation costs and enhance routing networks. Our next-generation TSM services improve the bottom line of companies. Connect with us at +1 (619) 354 8539 for information on transportation Spend Management services. For further details on our customized services, visit our Audintel website.

UPS and FedEx 2024

GRI 2024: Effects and comparison between FedEx and UPS GRIs

by BlogTSM

The holiday season is here. It’s the time for shipping carriers to announce their General Rate Increase (GRI). Major shipping carriers like FedEx and UPS have already announced the GRIs for 2024. Well, what does this mean for e-commerce retailers or small companies? This blog will discuss the concept of General Rate Increase, its impact on businesses, and the strategies adopted by them. Further, we give a comparison of FedEx and UPS rates for 2024.

General Rate increase

General Rate Increase or GRI is the annual percentage increase in shipping rates by shipping carriers. This rate hike is across all services offered by parcel and freight carriers. GRIs announcement is usually in the fall of the previous year. The percentage hike is generally between 4-6%. The GRI announcement allows businesses to plan the shipping costs of their packages.

Many factors influence GRI, like labor shortages, operating costs, and insurance. In addition, rising inflation, market demand, supply chain disruptions, and government regulations can influence GRI. Moreover, various challenges to shipping carriers’ distribution networks have influenced GRIs this year. Shipping carriers mention service enhancement, technology innovations, and fleet maintenance for the annual General Rate Increase. These rates vary between shipping carriers. Understanding the GRIs of different parcel carriers is essential for shippers to manage shipping costs.

GRI: its significance in the shipping industry

Companies with domestic and international shipments can’t take rising GRIs lightly. The shipping rates also include surcharges or value-added services. In addition, the fees of different shipping carriers rise annually. Companies can calculate shipping costs based on service levels, distances, package weights, etc. The increase in shipping rates is responsible for the rise in shipping costs to various destinations. Shippers have to plan their shipments according to the impact of GRIs.

Impact on General Rate Increase on shippers’ packages.

GRI percentage is higher for packages going a longer distance. Moreover, express packages or air freight rates are high. Usually, GRI is more economical for ground packages than express ones.

The impact of GRI is less for companies that have negotiated a rate cap in their shipping contracts. They can further ask for discounts from the shipping carriers. However, companies with no contracts pay extra with the rise in GRIs annually. However, the rate cap does not apply to surcharges.

Our earlier blog has discussed about impact of GRI. Here, we will discuss the new shipping rates in 2024 of the premium big carriers, FedEx and UPS.

Comparison between FedEx and UPS rates

FedEx GRI will come into effect from January 1, 2024. UPS GRI will be effective from December 26, 2023. GRI varies from the surcharges or value-added services levied by FedEx and UPS.

The U.S. domestic, export, and import services, FedEx Express shipping rates have increased to 5.9% on average, as per the FedEx website. According to the UPS website, the rates have increased to 5.9% for UPS Ground, air, and international services. Both FedEx and UPS claim that GRI 2024 is lower than last year’s GRI. However, their demand surcharges for the holiday season are moving northwards. These rates also do not include fuel surcharge.

The annual rate guides of FedEx and UPS help shippers decide their shipping strategies. We will try to understand the figures in service and preview rate guides for 2023 and 2024.

  • Daily rates of UPS and FedEx

The UPS service guide consists of the domestic daily rates for packages weighing 1 lb to 150 lbs within 49 contiguous States. Daily rates for packages weighing less than 150 lbs for international shipments are under different UPS Worldwide, UPS Standard from Canada and Mexico, export, and import headings.

The UPS service guide contains domestic rates for services like UPS Next Day Air Early, UPS Next Day Air, UPS Next Dy Air Saver, UPS 2nd Day Air A.M., UPS 2nd Day Air, UPS 3 Day Select, UPS Ground for shipping Zones 2-8 within the 50 states. Chart 1 compares between 2023 and 2024 daily rates for the UPS express and UPS ground package delivery services.

Chart 1: UPS list rates

Chart 1 will focus on list rates of : UPS packages of 1 lb within the U.S. daily rates for services in Zone 102 (Next Day Air), Zone 202 (2nd Day Air), Zone 2 (Ground), Zone 242 (2nd Day Air A.M.) for Destination ZIP codes starting with 004-005. For further details on all the daily rates of UPS, check their website.

FedEx service guide provides information about the list rates of FedEx Express packages within the U.S. and the international package rates for export and import. The guide consists of the FedEx ground rates within the U.S. and Canada. UPS Ground and FedEx Ground services are cheaper than Express Services.

The FedEx U.S. express packages cover FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day A.M., FedEx 2Day, and FedEx Express Saver services. It includes Zones 2-8 in the contiguous U.S. for packages weighing less than 150 lbs. Further, Chart 2 covers the U.S. express packages of 1 lb in Zone 2 (within 150 miles) across service levels, including Ground. It compares the 2023 and 2024 rates and their GRI percentages.

Chart 2: FedEx list rates

Chart 2 will focus daily rates of FedEx packages of 1 lb within the U.S. for services in Zone 2. For further details on the service levels of FedEx, check their website.

Shippers can explore the services that deliver their parcels faster and economically. Further, companies can explore the list rates of other services to suit their shipping needs.

  • Surcharges or Value-added services offered by FedEx and UPS

Alternatively, companies know about the surcharges levied by FedEx and UPS every year. Below Charts (3 and 4) compare FedEx and UPS surcharges for 2023 and 2024.

The value-added services of UPS will be effective from December 26, 2023. Domestic charges like additional handling, address correction, delivery area surcharge, remote area surcharge, Pickup fees, and more have seen an upward trajectory. The below chart 3 gives an overview of a few value-added services from 2023 and 2024.


Chart 3: UPS Surcharges

UPS website gives information in detail about the value-added services and other charges. In addition, it also provides the changed zip codes, where the delivery area surcharge is in 2024.

According to the FedEx authorities, there will be an assessment of Additional Handling charges and Oversize charges of packages for multi-piece international shipments. FedEx Ground and Express services will face an increase in surcharges from January 1, 2024. The customs clearance service fees on imports are also increasing in 2024.

Chart 4 depicts the increase in the percentages of surcharges in 2024 compared to 2023.

Chart 4: FedEx surcharges

Zones 3-4 also include  U.S. Ground Zone 22 (Intra-Alaska), U.S. Ground Zone 14 (Intra-Oahu), and U.S. Express Intra-Hawaii.

FedEx freight shipping charges are also changing from January 1, 2024.

Not just the daily rates, companies are facing the brunt of high demand surcharges and fees levied by UPS and FedEx. Businesses need to devise shipping strategies to circumvent the impact of increasing GRIs year-on-year (YOY).

  • Effect of Minimum Charges and the necessity of rate caps

Minimum charges are the lowest fees a shipper will spend on any package. Carrier package minimum charges are the fees for a Zone 2 one-pound package. Minimum charges apply to shippers even if they have existing discounts.

Chart 5 compares the UPS Minimum Net Charges for some services in 2023 and 2024.

Chart 5: UPS Minimum Net Charges for package with 1 pound weight for UPS Ground – Zone 2, UPS Next Day Air-Zone 102, UPS 2nd Day Air- Zone 202, UPS Next Day Air Saver – Zone 132

Fedex sets minimum charges for all services. It is usually for a Zone 2 one-pound package for all services. The comparison between the services in 2023 and 2024 is in Chart 6.

Chart 6: FedEx Minimum charges for zone 2, 1-pound packages

Shippers can get discounts on low-weight packages with FedEx minimum change reductions in their contract agreements.

Moreover, companies with rate caps can limit any increase to a value close to a negotiated rate cap. Hence, companies must include rate caps in their contract negotiations to keep rate increases in check.

Ways to offset the impact of GRI on businesses

It’s not possible to avoid the impact of GRI on businesses. However, there are ways to reduce shipping costs effectively. A few ways to offset the GRI impact are:

  • Negotiations

Shippers can revise their contracts if they have not renegotiated for many years. Further, parcel carriers face competition from new entrants and fluctuating shipping volumes. It gives shippers a chance to negotiate for better shipping rates. 

  • Intelligent use of shipping data

Companies can use their historical shipping data to plan their shipping strategies. The data helps shippers understand their shipping operations. A deep knowledge of the shipping profile, service levels, distance, and package weights helps keep shipping costs down.

  • Diversifying carrier network

Shippers can use alternative carriers, regional carriers, and postal services at competitive rates. Packages can be sent to various locations easily through different shipping carriers. It helps in reducing the impact of shipping rates substantially.

  • Focus on packaging

Oversize packages are expensive to ship for companies. So, shippers have to focus on packaging goods to minimize space and save money.

Conclusion

Businesses need to understand the different aspects of GRI. In addition, its impact on shippers’ shipping profiles will help companies reduce shipping costs. Conducting an audit of the shipping operations allows companies to negotiate better with shipping carriers. Further, partnering with Audintel gives shippers valuable insights into their shipping profile. It helps them to prepare cost-effective shipping strategies to reduce GRI impact.

About Audintel

Audintel is a technology-first and customer-focused organization that optimizes logistics and shipping costs. Our trustworthy solutions help clients gain deeper insights into their logistics spending. For more information about GRIs and their impact on your business, contact us at +1 (619) 354 8539 or visit our Audintel website.

SOC Compliance

How SOC 2 compliance is crucial for privacy and data security?

by BlogTSM

Numerous businesses amass extensive customer data during shipping, prompting concerns about potential cyber-attacks and data breaches. As a result, they seek assurance from their service providers regarding safeguarding this data. Companies offering software and audit services implement stringent compliance standards and security measures to ensure data protection. Various compliance standards, such as ISO 27001, SOC 1, SOC 2, CSA STAR, and ISO 27701, are employed for information security management. However, SOC 2 is the preferred choice for many software providers in the United States.

This article delves into the significance of SOC 2 compliance within supply chain management, highlighting its importance. Additionally, we are pleased to announce that Audintel has achieved SOC 2 Type 1 compliance, reinforcing our commitment to data security.

SOC 2 compliance

System and Organization Control 2, or SOC 2, focuses on proving an organization has implemented essential data security controls. As developed by the American Institute of CPAs (AICPA), SOC 2 defines criteria for managing customer data, including in the cloud. Further, SOC 2 is unique to each organization, its business practices, and controls. A company that undergoes a SOC 2 audit demonstrates its ability to provide safe and secure services. In addition, it ensures data protection from any theft.

Essentials of SOC 2 compliance

SOC 2 is an audit procedure that manages consumer data and works on five trust principles or criteria, namely,

  • security – which involves safeguarding the company system from unauthorized access through logical or physical means. Utilizing software tools, one can effectively oversee and mitigate issues. The issues of unauthorized information manipulation, disclosure, deletion, theft, or misuse. These tools encompass features of two-factor authentication, network and application firewalls, and intrusion detection systems.
  • availability – pertains to ensuring that the company system, service, or product remains accessible and fully operational by contractual commitments. Additionally, effective management necessitates implementing performance monitoring, incident management, disaster recovery plans, and related processes.
  • processing integrity – entails ensuring that systems and data processing are thorough, precise, punctual, and conducted with proper authorization. Managing this aspect involves vigilant process monitoring and implementation of quality assurance (QA) procedures.
  • confidentiality – involves safeguarding information identified as “confidential,” ensuring its security. It encompasses data such as Intellectual Property (IP) content, business strategies, and sensitive financial details, subject to strict access limitations. The preservation of confidentiality relies on tools such as encryption, access control measures, and network firewalls.

and

  • privacy – entails ensuring that personal information, which is collected, stored, utilized, disclosed, and disposed of, aligns with the company data policies and adheres to the Generally Accepted Privacy Principles (GAPP) established by AICPA. Personal data consists of names, addresses, Social Security Numbers, and more, necessitates enhanced protection measures. Therefore, implementing rigorous access controls and encryption is crucial to thwart unauthorized access.

An external auditor awards SOC 2 certification to the service provider that follows the above five trust criteria. After the audit, the company will get a Type 1 or Type 2 SOC report.

SOC 2 Type 1 reports

SOC 2 Type 1 report describes the systems of a service provider. It reviews the design of its security controls at a point in time. It gives a competitive edge for start-ups against new companies offering the same service. It is a preliminary step towards achieving Type 2 certification.

SOC 2 Type 2 reports

SOC 2 Type 2 report details the operational effectiveness of the system. It is an extensive audit process to confirm the effectiveness of the security processes. SOC 2 Type 2 audit confirms the control processes are consistently working and effective. The review period for this certification is over 6-12 months.

Necessity of SOC 2 compliance in the supply chain industry

As the supply chain industry is inching toward complete digital transformation, shippers require software providers that are SOC 2 compliant. SOC 2 is a rigorous audit procedure by third parties to validate a service provider’s adherence to security compliance. In addition, SOC 2 compliance assures clients that the service provider is security conscious.

It is a testament to the integrity and commitment of a company to its customers to keep their data secure. Being SOC 2 compliant enhances the company’s reputation for storing sensitive information securely.

At Audintel, we emphasize safeguarding our customers’ data and maintaining strict confidentiality. Towards this commitment, we are delighted to announce that Audintel has achieved SOC 2 Type 1 compliance. Our business practices and policies underwent a comprehensive assessment by third-party auditors, successfully meeting all the requirements for Type 1 compliance. We take pride in offering state-of-the-art technology for transport spend management, revolutionizing shipping operations.

All the data on the Audintel website is encrypted and secure. Moreover, our teams are responsible for safeguarding user data. Further, we plan to achieve SOC 2 Type 2 compliance within a few months.

Closing thoughts

Information security is at the forefront of all businesses. Third-party vendors and cloud-computing service providers utilize data for various services. Thus, companies must partner with reliable third-party service providers that secure their data. SOC2 compliance is one of the most stringent compliance standards companies look for in their data security.

Audintel is SOC 2 compliant. Our commitment is to provide top-quality services. We give cutting-edge technological services to our clients with stringent security standards. Know more about our services by talking to us at +1 (619) 354 8539. Additionally, you can visit our Audintel website for further information.

Small_Parcel_Shipping_Challenges

How to overcome challenges of small parcel shipping?

by BlogTSM

Small Parcel shipping is challenging for many shippers. Businesses need strategic solutions with the right software tools to ship small parcels efficiently.

The convenience of ordering online is here to stay. Experts believe there’s been a significant increase in the volume of shipping small parcels to customers directly over the past few years. However, small parcel shipping domestically or internationally requires strategic planning. Inflation, record-high gas prices, supply chain disruptions, and more contribute to various challenges during shipping. Shippers need to automate shipping processes to save time and enhance customer satisfaction. This blog will focus on the challenges shippers face when shipping small parcels.

Small parcel shipping

Packages such as envelopes, posters, small boxes, etc., weighing less than 150 lbs are small parcels. Shipment of small packages requires efficient pickup, transit, and delivery. They do not occupy full truckload capacity like freight or large packages. Each small parcel order is unique and has various requirements. Shippers face challenges when shipping small parcels direct to customers (D2C).

Some of these challenges include:

  • Management of high volumes of small parcels

As customers shifted to e-purchases, there has been a rise in small parcel shipping volumes. Warehouse workers and truckers keep parcel volumes moving to prevent supply chain disruptions. LTL carriers disassemble small parcels or less than pallet load (LPL) shipments to fill their trucks. It may cause damage to the goods during transit.

  • Labor requirements

Processing small parcel shipments requires more labor or workers than bulk shipments. It leads to higher shipping costs for shippers. This cost is either transferred to customers as shipping fees or is a part of the product. Companies hire more people for warehouses and fulfillment centers for shipping small parcels.

  • Overcoming packaging hurdles

Small packages can vary in size, weight, and dimensions. Picking out the ideal packaging material is necessary to prevent shipping delays. Padded mailers and envelopes are appropriate for single items. Fragile items need packing in boxes with proper dimensions to avoid damaging goods in transit. In addition, heavy packages cost more to ship than light ones.

  • Accessorial fees charges

Many transportation service providers charge accessorial fees for small parcel shipping. These fees are residential charges, additional handling, address correction, weekend pickup/delivery, and more.

  • Selection of appropriate parcel carriers and services

Last-mile delivery of small parcels is essential for better customer satisfaction. Choosing the correct local parcel carriers is necessary as inexperienced and untrained courier staff can damage the goods. Hence, selecting the parcel carrier and the appropriate services allows shippers to cater to their customers’ needs.

Retail consumers expect on-time delivery and updated arrival status of packages. And failure to meet customers’ expectations causes loss of repeat business. Providing reliable services with greater visibility gives shippers an advantage over their competitors. Many parcel carriers like UPS and FedEx enhance customer experience with their services.

UPS small parcels

UPS has various options for small parcel delivery that are tailor-made for small businesses. They provide access to Drop Boxes, pickup options, and an-inclusive rate for shipments. They have defined the price range and service level for small parcel deliveries of particular dimensions at specific times. For example, UPS Ground services can provide 1-5 delivery dates for shipping small parcels.

FedEx small parcels

FedEx has different package classifications based on size and weight for delivering small parcels. For instance, FedEx’s Flat packages have short dimensions and a volume of around 400 cubic inches. FedEx has various small parcel limits for domestic Ground services than Express Services.

A third-party (3PL) provider helps shippers in carrier management. They can negotiate better shipping rates for shippers to get better discounts. Further, they can compare carrier performances and suggest services of multiple parcel carriers. With expert knowledge of packaging expertise, they can provide cost-effective solutions.

Audintel- for faster and cheaper small parcel shipping

Our state-of-the-art shipping optimization platform helps manage small parcel delivery. We offer customizable dashboards that continuously monitor shipping status and on-time delivery of packages. Audintel’s automated real-time customer notifications keep our clients abreast of the entire shipping operations of packages. Our expert team can provide shippers with data to compare carrier performance, identify areas of saving money and time, and more.

Companies can streamline their small parcel shipping needs with Audintel’s Transportation Management System (TMS). We provide customized views within our dashboards even for the shipping’s made through small parcels to different destinations. Moreover, our software tools help reduce shipping costs for our clients by providing alternate solutions.   

Finally

During the pandemic, there was a drop in sales of brick-and-mortar products. E-commerce sales of small packages have grown exponentially. Smooth, reliable small parcel shipping is vital for shippers to improve their profitability. So, efficient management of high volumes of small parcels with advanced shipping software solutions is the need of the hour. Partnering with Audintel helps shippers overcome these challenges. We address each business’ unique customer preferences to ensure effortless, cost-effective delivery of small parcels.

Along with customized dashboards, Audintel do have 200+ reports available in their portal which are available for live customers which will help in generating and scheduling the reports based on their required criteria.

Wondering how much it will cost for small parcel shipping? Learn more about small parcels by contacting us at +1 (619) 354 8539 or visiting our Audintel website.

US Shipping Zones

U.S. Shipping Zones affecting shipping costs: here’s why

by BlogTSM

As an e-commerce business owner, understanding shipping zones is essential to fulfilling shipping orders. Shipping packages to remote locations costs money. But improving delivery time attracts consumers. Companies need to save money and reduce delivery time to be profitable among their competitors. This blog will help companies understand the U.S. Shipping zones. And highlight the effective ways to save money and time.

U.S. Shipping Zones: what are they?

Postal zones across the U.S. are the shipping zones. They are the geographical regions where shipping carriers can deliver packages. Parcel carriers can calculate the price for delivery of a parcel based on the distance. There are eight U.S. shipping zones domestically. Zone 9 is for the freely associated States or territories outside the U.S. mainland (for example, Marshall Islands, Micronesia, Palau).

How to calculate U.S. Shipping Zones

The U.S. Shipping Zones calculations are from the point of origin of the package to the destination. They are divided into a 100-mile radius according to the postal ZIP codes. Zone 1 is the region where the shipment originates. Shipping Zones 2 to 8 are dynamic and depend on where the package is shipped. In addition, shipping packages sent to distant locations lead to a rise in shipping costs. Shipping Zone 8 will be the furthest destination. Shipping packages within a zone costs less.

For example, shipping a package from San Francisco, California, to Atlanta, Georgia, means the shipment is going to Zone 8. However, if you are shipping a package within fifty miles of San Francisco, it is within Zone 1.

Shipping Zones by carriers

Shipping costs increase by Zone and shipping carriers charge based on the distance and weight of the package. Each shipping carrier has a different Shipping Zone Map and ZIP codes in each Zone. In addition, some services of shipping carriers vary according to the U.S. Shipping Zones. For instance, FedEx Priority Overnight Express services have sixteen zones.

Now, let’s understand the shipping for the major shipping carriers across the U.S.

UPS Shipping Zones

UPS provides an online tool for entering the Postal code of origin, and the user can download the Zone Map. Further, UPS Daily Rate Guide helps companies determine the costs and services for a shipment. The weight of the packages will also increase the shipping costs. Parcels weighing less than 1 pound do not cost more than heavy ones.

FedEx Shipping Zones

On the FedEx website, entering the ZIP code of the package origin and the destination ZIP code provides the FedEx shipping zone. Further, FedEx shipping rates give price details based on package weight and FedEx service. For instance, shippers can use the FedEx Ground service chart to track their shipments from the entered ZIP code.

USPS Shipping Zones

USPS has an online site to download the Zone chart after entering the origin and destination ZIP codes. But, the pricing of the services is not in the Zone chart.

 USPS has fixed-rate pricing for many services. Most shippers opt for USPS services due to their flat-rate pricing, which is easy to understand.

Regional carrier Zones

U.S. Shipping zones are calculated differently by regional carriers. They will concentrate on particular regions for delivery fulfillment rather than an entire state. Shippers opt for regional shipping carriers to send their packages to a specific location. For example, OnTrac helps shippers to calculate the transit time based on the ZIP codes for pickup and delivery.

Ways to minimize shipping costs and delivery time

Businesses can use different shipping Optimization strategies to minimize shipping costs and delivery time. Some of these ways are:

  • Opting for multiple fulfillment centers

It allows shippers to send packages to customers quickly and efficiently. Historical shipping data helps shippers to locate the best locations of fulfillment centers. Businesses can choose the best cost-effective services and rates provided by shipping carriers.

  • Identifying shipping carriers with flat rates

Shippers can opt for shipping carriers that provide flat rates that remain consistent irrespective of the shipping zone. Shippers can save money and time with the shipping costs being predictable and reliable.

  • Using local shipping carriers

Businesses can use local shipping carriers for last-mile delivery of shipments. It lowers shipping costs and brings customer satisfaction.

  • Partnering with Third-Party Logistic Providers

Third-Party Logistics (3PL) Providers are experts in shipping optimization. They have in-depth knowledge of shipping carriers’ tables, shipping zones, shipping regulations, etc.

Audintel’s SaaS solutions help Third Party Logistics (3PL) Providers automate order fulfillment processes. Our state-of-the-art analytical tools help shippers locate the nearest fulfillment center for quick delivery of packages. Audintel also offers shipping optimization strategies to our clients for cost-effective solutions.

To Wrap it up

It becomes confusing for businesses managing their order fulfillment to understand and calculate the U.S. Shipping Zones. Further, the shipping charges vary among different shipping carriers. Partnering with a 3PL help ease shippers’ hassles of figuring out the Zones Chart of shipping carriers and save money. Audintel provides automation tools that help 3PL in transport spend management. We help clients understand the complex shipping Zones of different shipping carriers.

Learn more about how Audintel can reduce shipping costs by contacting us at +1 (619) 354 8539 or visiting our Audintel website.