global freight audit

LTL and TL shipping rates: know more to lower shipping costs

by BlogFreight Audit

Speed is the need of the hour for e-commerce giants such as Amazon. Companies that deal with high shipping volumes opt for faster, cheaper ways of freight transport. Depending on the specific freight requirements, companies opt for the mode of freight shipping. Freight transportation by land is by trucks and sometimes rail.

According to the Bureau of Transportation Statistics, “trucks carry most of the tonnage and value of freight in the United States.” In addition, many factors impact trucking freight rates of shipments. This article discusses LTL and TL freight shipping modes and shipping rates. Further, we focus on picking the right freight services to save on shipping costs.

So, let’s learn about LTL and TL shipping rates, but before that

What are TL and LTL shipments?

TL (or FTL) is Truckload or full Truckload shipments. Shipments that require the entire truck are Full Truckload or Truckload freight. A whole truck will exclusively move the shippers’ goods, whether full or half empty. Shippers opt for TL freight when they want their goods to reach their destination in time or when volume of goods shipped is more.

Less-Than-Truckload shipments are known as LTL shipments. Multiple shippers share a single truck to ship their goods. It is ideal for small e-commerce businesses that do not send goods in bulk or want to save money.

TL shipping rates

TL freight delivery is faster and requires less intermittent stoppage. The Full Truckload prices are more predictable than LTL shipping prices.  Further, Truckload shipping rates are easier to calculate from origin to destination. However, factors affecting TL shipping rates include:

  • Mileage

The cost of any shipment depends on the distance it travels. Longer distances incur higher charges due to the high amount of fuel used in delivery, driver time, etc.

  • Capacity

The capacity of trucks shrinks when the trucks are booked ahead for the movement of seasonal fruits and vegetables. Refrigerated trailers, also known as reefer trailers, are set at specific temperatures to ship dairy goods, flowers, fruits, meat, vegetables, and more. These truckload shipments are slightly more expensive due to special conditions such as temperature control.

  • Peak season surcharge

Shippers face a rise in shipping rates during holidays like Thanksgiving and Christmas due to the high demand of consumers. Peak surcharge by shipping carriers raises shipping rates.

  • Flexibility and timing

Shipping rates increase if shipping carriers do not have the flexibility to ship goods, In addition, weekend pick up and odd hour timings will cost more for shippers.

  • Fuel surcharges

Shipping carriers charge fuel surcharges based on the market price of diesel. The government-approved fuel charges change weekly.

  • Accessorial charges

Accessorial charges are expenses incurred for additional work done by shipping carriers, like handling charges, extra attention to freight in loading/ unloading, etc.

TL shipping rates change with the current market and fluctuate even within a day or hour. They also vary from carrier to carrier. And so, choosing the correct shipping carrier is essential for businesses to save money.

LTL shipping rates

LTL shipments are cost-saving as shippers only pay for the space their goods occupy in the truck. LTL freight shipping has frequent pick-ups/ drop-offs at multiple locations, hence longer transit time. As a result, LTL shipping rates are complex and not easily understood by shippers. Nevertheless, the calculation of Less-Than-Truckload shipments depends on a few factors, such as:

  • Weight

LTL freight is consolidated into pallets to protect goods in transit. The weight of LTL pallets is usually between about 100 and 10,000 lbs. The heavier the shipment, the less it will cost per hundred pounds (CWT), but the total cost will increase. Most LTL class rates have six-tiered weight break-off points, including the minimum charge per shipment.

  • Density

The density of LTL freight’s calculation involves dividing the weight of the shipment by volume (length x width x height – DIM Factor). Lower density shipments take more space in the truck and will cost more. The density of LTL shipments increases or reduces LTL shipping rates.

  • Freight Class

Each trucking shipment has a freight classification that affects the trucking rates. In the US, the National Motor Freight Classification (NMFC) has 18 cargo classes ranging from 50 to 500. Determination of freight class is by value, handling, stowability, and liability. The higher the freight class, the more expensive the shipment.

  • Distance

Shipping rates depend on the distance of each shipment. Long distances are more expensive. Shippers need to know the origin and destination zip codes to reduce shipping costs. In addition, knowledge about the shipping lanes or routes having high traffic is essential.

  • Accessorial Charges

Extra services cost more and are a part of accessorial charges. Special fees for pick up or delivery from remote locations, weekend delivery, special handling charges, and fuel surcharges are expenses that contribute to shipping rates.

LTL shipping rates vary from carrier to carrier. Choosing the shipping carrier for LTL shipments is critical for saving money for businesses.

How Audintel helps you choose freight shipping mode and rates

After seeing the above two freight options, it becomes difficult to decide which shipping mode is the best for your business. For this reason, partnering with an audit company, Audintel, benefits shipping businesses to a great extent. Our team monitors the TL and LTL freight shipping rates and guides shipping businesses. We audit fuel surcharges applied by carriers to TL or LTL shipments. Our team of experts helps shippers negotiate the best freight shipping rates with shipping carriers. Further, Audintel helps its clients track, monitor, audit, contest with carrier in case of dispute their freight shipments so that there is no loss of revenue.

To Summarize

LTL and TL shipping rates depend on the shipper’s freight requirements. While LTL shipping mode is appropriate for businesses with smaller loads, it is better to know the shipping rates of TL if the load occupies more than half truckload space. Alternatively, TL shipments reach on time, but they cost more. Partnering with Audintel will help you find a balance in choosing LTL and TL shipping modes and managing their shipping rates. You can reach us for further discussions or you can call us at +1 (619) 354 8539. Further, you can also learn about our services on Audintel website.

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Shipping trends of 2022 that redefine the way we ship

by BlogSpend Management

The supply chain industry has faced many challenges in 2020 and 2021. This year appears to be difficult for small and mid-sized businesses. In addition to the pandemic resurgence in some countries, the Ukraine conflict has posed many challenges.

Shipping costs have risen as FedEx has hiked its peak surcharges for international parcel and freight shipments. Many areas of the shipping industry have also seen disruptions. This article will explore the shipping trends of 2022, focusing on small packages.

Shipping trends of 2022

Online buying has put tremendous pressure on the supply chain industry. E-commerce customers are expecting faster delivery and returns of items. Small and mid-sized businesses are looking for opportunities to mitigate late parcel deliveries. With this in mind, here are ten shipping trends of 2022 that will change the way we ship parcels.

  • A rise in shipping costs

Parcel carriers have hiked annual general rate increases (GRI) and surcharges leading to a rise in the shipping costs. Unprecedented consumer demand for same-day delivery has led to increased shipping volumes. In addition, inflation is surging upward due to supply chain issues. Shippers need to evaluate the services they need to spend on to offset the rise in shipping costs. Further, businesses are advised not to change their parcel carriers or renegotiate their carrier contracts. It is because parcel carriers offer less attractive terms than their existing agreements.

  • Congestion at warehouses, port terminals

Due to the pandemic restrictions in countries, the waiting time to load and unload goods has risen. As a result, there is congestion at warehouses and port terminals, causing shipment delays. There is a backlog that is hampering shipping operations. Opening new fulfillment centers or physical stores in heavily populated areas brings products closer to the public. It allows shippers to provide quick parcel shipping to their customers.

  • Digitalization

The pandemic caused a shortage of professional workers such as logistic operators. Digitalization of shipping processes like warehouse operations is improving supply chain efficiency. Shippers can avoid several manual steps during order fulfillment by using shipping software solutions. Digital solutions are reducing shipping costs and enhancing shipping processes.

  • Personalized delivery experience

Customer experience is essential for recurring shipping business engagement. It is necessary to provide a personalized delivery experience with reliable, on-time delivery of packages. Clear and transparent communication regarding delivery and tracking of parcels helps customers. Further, adopting new technology to limit package theft and enhance the delivery process are other factors to increase customer satisfaction.

  • Sustainability

An increasing number of consumers are trying to reduce the carbon footprint of parcel deliveries. Re-cyclable biodegradable material is in use for packaging and shipping goods. Further, shippers use ground services to reduce overall transportation routes. Shipping businesses keep sustainability in mind by using eco-friendly boxes and mailers. Parcel carriers are using electric vehicles for shipping parcels to customers. Moreover, shipping carriers meet environmental, social, and governance (ESG) standards by using electric-powered delivery vehicles.

  • Optimization of supply chain management

The “just-in-time” supply chain has become unpopular during the pandemic time. Shippers have shifted to holding a large buffer stock for any surges in demand and a decrease in the supply of goods. Shippers are examing their logistics and inventory data to optimize supply chain management. Inventory and e-commerce data help shippers optimize their shipping processes while reducing shipping costs.

  • Last-mile innovation

Last-mile delivery of packages is an integral part of customer satisfaction for businesses. Shortage of drivers can cause a delay in last-mile deliveries of parcels. Innovation in the form of robotics, drone, and self-driven vehicles will prevent poor last-mile delivery experiences. Some shipping businesses are already using drones to drop off medicines. However, using a drone for parcel delivery is difficult for communities. They require special permission to receive such deliveries. Big Data, Artificial Intelligence, and Machine Learning have the potential to make logistic processes more simple.

  • Reverse logistics

A drawback to the increase in online shipping is the rise in returned packages. Shipping businesses have to pay for the returns processing fee with the increased shipping rates of parcel carriers. It eats into the profit margins of shipping companies. As a result, some big businesses offer refunds and keep the product in the customer’s hands. Alternatively, some shipping companies are mitigating returns costs with a multi-carrier strategy. Therefore, shippers use artificial intelligence to calculate whether it is economical to process a return.

  • Local pop-up e-commerce distribution centers

Shipping companies respond to local shipping demands by operating local pop-up distribution centers. Shipping parcels from long distances costs more. Lessening the delivery time by renting out warehouses allows customers to receive orders sooner. Expect gig economy carriers to rise in 2022. Shippers are planning to use the services of gig economy carriers to deliver packages within a few hours to customers.

Partnering with parcel shipping audit company

2022 will be a challenging year for shipping businesses. But, partnering with the right parcel shipping audit company can save money for businesses. In addition to negotiating the best shipping rates, Audintel helps businesses receive discounts for services from parcel carriers. Audintel helps shippers analyze their shipping data for inaccuracies, accessorial charges, refunds, etc.

Finally, the Shipping industry has to change with the times. What was popular two years back is not feasible now. Shippers have to make critical decisions and adapt to the ever-changing consumer demands. Data-driven innovation will have an impact on package deliveries in 2022. Partnering with Audintel will be beneficial for shipping businesses. You can reach us for further discussions or you can call us at +1 (619) 354 8539. Further, you can also learn about our services on Audintel website.

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Why is periodic up-gradation of carrier contracts essential?

by BlogCost Optimization

How recent is your contract with your parcel carrier? Is it a few days or years old? Does your contract offer discounts for some services? These are some questions that businesses need to address in 2022. With this in mind, contracts with shipping carriers play a crucial role for companies.

A periodic contract review is essential to minimize financial and legal risks. This article explores the importance of carrier contracts. And the ways to navigate the challenges shippers face during parcel carriers negotiations.

Importance of carrier contracts

With the rise in fuel prices, businesses have to be careful they do not pay for “peak”  surcharges. Recently, parcel carriers such as UPS and FedEx have raised General Rate Increase (GRI), among surcharges. The impact of these surcharges will affect shippers’ budgets and resources. A robust contract with shipping carriers ensures that businesses pay the amount mutually agreed by the two parties. But, shippers have to be aware of when their contracts end, or it may cost them dearly.

Challenges faced while negotiating with parcel carriers

In the first place, shippers need to know the challenges they face during contract negotiations. Incidentally, parcel carriers have in-depth knowledge about a business’ shipping characteristics. And so, shipping businesses have to know about their shipping history before negotiating with the parcel carriers. Here’s a list of challenges that shippers need to address:

  • Identify the areas to save money

Shipping history and past shipping data help shippers understand the areas to reduce shipping costs. Shipping businesses should know their shipping services with the carriers of their choice. They have to review factors influencing the shipping spend, such as shipping zones of parcels, the weight of packages, package dimensions, and more. Knowledge of one’s shipping characteristics helps businesses close better deals with parcel carriers.

  • Examine the often used accessorial charges

Additional expenses may reduce to a large extent by examining shipping data. For instance, residential deliveries are more costly than commercial deliveries. Further, surcharges like additional handling, address correction, large packages, remote areas, etc., add to the shipping costs. During negotiations, shippers need to find ways to eliminate the extra charges.

  • Keep parcel carriers’ competitor’s data ready

Shippers should have the competitor’s data handy during negotiations with parcel carriers. This data gives an upper hand to shippers to secure better rates in the carrier contracts. In addition, businesses know what to bargain for when negotiating with shipping carriers.

  • Work towards a mutually beneficial contract

Shipping businesses need to work towards a mutually benefitting carrier contract. The contract has to be drafted so that shippers can ask for renegotiations at no particular time. The contract should not be time-bound or favor the parcel carriers. A mutually beneficial carrier contract makes life easy for both shippers and shipping carriers.

  • Do not waive money-back guarantee services

It is a vital part of carrier contract negotiations. Parcel carriers like UPS and FedEx offer a money-back guarantee for late deliveries of packages. However, during contract negotiations, they ask businesses to waive the money-back guarantee clause by offering discounts. Shippers need to be careful not to waive the money-back guarantee clause as they will lose money in the long run.

  • Ask for discount incentives

Each shipment is eligible for discount incentives from the parcel carriers. Carrier contract negotiations involve discounts based on the weight of packages, type of services, and shipping zones. In addition, based on shipping volumes and their shipping data, shippers ask for a discount.

  • Avoid risks by partnering with experts

Shippers can avoid financial risks by partnering with audit experts. Detail analysis of shipping data gives an idea of the overall cost of each shipment. Companies need to hire extra resources to understand the intricacies of shipping rates of various parcel carriers. It is where audit firms such as Audintel can provide the leverage to save money for companies.

The significance of periodic renegotiation of shipping carrier contracts

In addition to the challenges mentioned above, shipping companies need to renegotiate their carrier contracts. Parcel carriers may dissuade shippers from renegotiations, citing no change in shipping costs or disruption in carriers’ discounts. However, shipping companies need to renegotiate their carrier contracts periodically to benefit from discount incentives. Shippers have to balance budgets along with providing best-in-class customer services. If the current carrier contract does not help shippers, it is best to renegotiate or consider using other shipping carriers.

How does Audintel help in carrier contract negotiations?

Audintel’s team analyzes the data of the client and the parcel carriers to give the best deal. Our experts have a deep understanding of the working of parcel carriers’ pricing models. We root out anomalies in carrier contracts so that our clients get the best service rates. Audintel considers the current market conditions that will influence negotiations. We negotiate for our clients fairly and transparently and save money.

Conclusion

The parcel industry has faced several challenges in the past two years. The challenges include shipping delays from parcel carriers, capacity constraints, etc. In addition, UPS and FedEx have surcharges increasing every year. The frequent increase in expenses is hurting the bottom line of many shippers. Audintel assists shipping companies in carrier contract negotiations by auditing their shipping spend. We inform shippers about new carrier practices and encourage them to upgrade their carrier contracts periodically. Finally, for queries on shipping carrier contracts and negotiating tips, get in touch with us or you can call us at +1 (619) 354 8539. However, you can also learn about our services on the Audintel website.

Insightful shipping reports

Reducing shipping costs with insightful shipping reports

by BlogSpend Intelligence

Reducing shipping costs is essential for businesses. So, what are the factors affecting the rise in shipping expenditure? Shipping reports provide answers.

E-commerce businesses in 2022 are increasingly finding it difficult to lower their shipping costs. The reasons behind this are many. To begin with, the general rate increase announced by FedEx and UPS is more than last year. In addition, the economic situation has led to a fuel price hike. Further, additional surcharges are making matters worse. Thus it is essential to know the best way to reduce shipping costs. This article explores the factors influencing the rise in shipping costs. And how shipping reports are helping businesses reduce shipping costs.

Why is reducing shipping costs essential?

Shipping costs affect a business’ profitability. The growing demand for E-commerce goods has put pressure on parcel carriers to deliver goods faster. As a result, parcel carriers have increasingly adjusted their rates based on the shipping distance. Further, parcel carriers calculate the shipping expenses based on the availability of the warehouse area. Therefore, lowering shipping costs is essential for shippers to improve their margins.

Factors affecting shipping costs

Shipping costs are affected by many factors. We had earlier discussed ways to reduce shipping costs. But, the main factors that affect shipping costs include:

Fuel costs

The price of fuel surcharges has skyrocketed in the past year. The global supply chain disruption has caused an increase in fuel prices. Also, no additional crude oil supply is on the horizon for the US. Shipping parcels to far and remote destinations is costs more for shippers. Shipping to higher shipping zones for domestic shipments in the US is more expensive.

Package weight and dimensions

Shipping heavy packages lead to businesses paying more for shipments. Larger boxes mean an increase in the dimensional weight of packages. Shipping costs are rising due to the oversize dimensions and weight of parcels. Bulky, oversize packages cost more for shippers. In addition, FedEx and UPS charge a dimensional fee for customers using their company boxes.

Packaging

In addition to the weight and dimensions of packages, the packaging material is vital. Filling a parcel with padding material will increase the weight, thus increasing the shipping costs. The cardboard used for packaging increases the overall weight of packages. Further, multiple boxes are responsible for the rise in shipping expenses for businesses.

Delivery surcharges

Not only general rate increase, but delivery surcharges also contribute to rising shipping costs. Small and medium-sized businesses will be hit hard with the significant rise in delivery surcharges in 2022. Additional handling and oversize package surcharges are increasing for shipping zones across the US. Further, parcel delivery to residential areas will be costly with the rise in residential charges by UPS and FedEx.

Shipping speed

Any large or small business promises on-time, fast delivery of products. However, expedited shipping charges are eating into the expenses of shipping businesses. Express services offered by FedEx and UPS may save time for shippers. But, they increase the overall shipping costs.

Parcel carriers

Each parcel carrier offers a variety of services. Big parcel carriers like UPS and FedEx have a general rate increase annually. Shippers feel the effect of price rise in the services opted by them. Many businesses stick with a single shipping carrier for shipping parcels. Shipping businesses lose out on the discounts and deals offered by different parcel carriers for various services.

How do shipping reports help in reducing shipping costs?

Shippers need comprehensive solutions to mitigate the factors causing the rise in shipping expenses. It is where shipping reports are helpful for businesses. Searching, sorting, and viewing shipment information is possible with shipping reports. Shippers can plan their shipping strategies based on the data available in the shipping reports. The reference number of the shipment, type of service, pick-up, delivery dates, taxes, insurance, etc., are monitored by shipping reports. In addition, the past and present shipment details for a particular time frame are a part of the shipping reports.

Lower shipping costs with shipping reports of Audintel

Shipping businesses often wonder where their money is spent the most with each parcel delivery. With Audintel, shipping businesses have the advantage of getting customized shipping reports. Our intuitive software provides detailed information about each parcel shipment. We have experts who can track and monitor each aspect of parcel shipments. The actual weight and dimensions of packages are in shipping reports so that clients know where to save money. Audintel advises clients regarding the best, most affordable services of the parcel carriers. We help clients negotiate with shipping carriers on data points such as fuel costs, delivery surcharges, and more. Audintel prepares more than 85 shipping reports. In-depth shipping information is available for clients through shipping reports.

Final thoughts

A rise in fuel prices is having a cascading effect on shipping businesses. Shippers are looking for avenues to reduce their shipping costs and save money. And so, Audintel offers robust shipping reports that provide insights into each aspect of package shipment. Our shipping reports are comprehensive reports that help shippers lower their shipping costs. According to a client’s convenience, shipping reports allow a quick peek into each parcel shipment. To know about our shipping reports, you can call us at +1 (619) 354 8539 or contact us here. Please visit the Audintel website to learn more about us.

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Package late by a minute: request a UPS GSR, get a refund

by BlogTSM Services

The priority for a shipper is to ensure parcels reach customers on time. Moreover, customers also expect the same from their shippers. But, if the parcel delivery is late, there are chances that the customers may not do business with the shipper again.

As a result, shippers loose out on business and money. Further, not all shippers request a refund from parcel couriers in time. UPS and FedEx have Guaranteed Service Refunds (GSR) for service failures. This article explores UPS GSR for late package deliveries. In addition, we discuss the UPS services entitled for GSR.

UPS Guaranteed Service Refund for late package deliveries

As discussed in our earlier blogs, UPS guarantees on-time delivery of packages to 50 US states. In addition, UPS guarantees a refund for each shipment delayed. However, UPS does not give a refund due to certain conditions or restrictions mentioned on the UPS website. UPS Guaranteed Service Refund does not apply to packages with a Large Package Surcharge or Additional Handling charges. In addition, shipments made around the holidays are not eligible for a UPS refund.

What are the UPS services eligible for UPS Guaranteed Service Refund?

UPS Service Guarantee has updated rules for 2022. UPS had to suspend its money-back guarantee in 2020. But now, some services are reinstated. From April 5, 2021, UPS Service Guarantee is offered for the following services:

  • UPS Next Day Air® Early

This service guarantees early morning delivery for time-critical shipments. The delivery of packages is by 8 AM to major US cities.

It is for time-sensitive shipments with guaranteed overnight service. Further, there is an extension in the delivery time of parcels to residential locations from 10:30 AM to 12:00 PM.

  • UPS Next Day Air Saver®

It is an overnight service that is less costly than UPS Next Day Air®. In addition, the delivery time is till 11:59 PM on the guaranteed day of delivery.

  • UPS Worldwide Express NA1®

This service provides guaranteed next-business-day delivery to businesses in the US. Also, it is a fast shipping service to Canada, Mexico, Central, and South America.

  • UPS Worldwide Express Plus®

An international service that sends parcels early in the business day.

  • UPS Worldwide Express®

It is an international service that guarantees deliveries to 140 countries.

  • UPS Worldwide Express Saver

It is an economical international service that ensures package delivery during the day.

  • UPS Worldwide Saver®

An international service that guarantees delivery of packages to 220 countries by the end of the business day.

  • UPS Worldwide Express Freight® Midday

It is an international freight service to 35 countries with guaranteed delivery by 12:00 PM or 2:00 PM.

  • UPS Worldwide Express Freight®

International, guaranteed service for urgent, high-value freight of more than 150 pounds.

The above UPS services are for time-sensitive shipments. So, if there is a delay even by a minute, shippers are entitled to a refund from UPS. Shipping businesses need to identify each delayed shipment. Further, shippers have to request a refund from UPS.

How is a UPS GSR request made?

The shipper can request a refund in 2 ways

  • Calling 1-800-PICK-UPS (1-800-742-5877) and saying “Refund” or
  • Logging into the UPS Billing Center.

How to file a GSR in UPS website?

  • Step 1: Log in to UPS Billing center and navigate to “View & Pay Bill” page.
  • Step 2: UPS has two options to file for a GSR refund- “My Invoices” and “Dispute History & Refunds”.
  • Step 3: First option – Select “My Invoices” and select the invoice number and its tracking number for which the refund has to be claimed. Select Dispute option for the tracking number. Select the dispute reason and dispute level.

  • Another option is through “Dispute History & Refunds”. Select “Request Service Refund” in “Dispute History & Refunds” page. Select the Dispute ID and enter the tracking number.

The UPS Billing Center is accessible to shippers having an account with UPS. The request will be within fifteen days of the originally scheduled delivery date.

What happens after the submission of a UPS GSR request?

After approval of the refund request, UPS will credit or refund the transportation charges to the shipper. The credit is visible in a section in later UPS invoices. However, transportation charges will not include all other surcharges. UPS Service refunds information is on the UPS Tracking Details page.

Recovering UPS GSR made easy by Audintel

Imagine a business having more than twenty packages shipped per day. It would be difficult for companies to keep track of each late parcel delivery. Also, each delayed parcel will have a request for a refund from UPS. Businesses will need to hire resources to do this every day, thus increasing costs. Audintel has customized dashboards and auditing techniques that help businesses in recovering money. We seamlessly track each shipment and monitor it for late delivery. Audintel requests UPS refunds for late deliveries on the client’s behalf. Our team ensures that UPS Service Refunds are deposited directly in their client’s accounts.

Summary

Customer satisfaction is paramount for all businesses. So, late delivery of packages is harmful to further business growth. Moreover, shippers lose money if they do not request UPS refunds for late deliveries of parcels. Audintel audits shipments and retrieves money for its clients. Learn how to save money and track refunds by contacting us or you can call us at +1 (619) 354 8539. Visit the Audintel website to know more about us.

shipping zones

UPS, FedEx shipping zones: an easy guide on shipping zones

by BlogSpend Management

Saving on shipping expenses is essential for e-commerce businesses. But, it gets confusing figuring out the shipping rates of different parcel carriers? UPS and FedEx have different shipping rates based on various factors, including shipping zones. Hence, knowing about zones is equally vital for businesses. In this blog, we will discuss the shipping zones of UPS and FedEx and their significance.

So, what are shipping zones?

Shipping zones are the geographical areas for the delivery of packages. The zones consist of a set of zip codes. Shipping zones give the distance a parcel takes from its origin to its destination. The zones are not universal or fixed. The zones vary according to the type of service and the weight of packages. In addition, each parcel carrier has different shipping zones. There are eight domestic shipping zones for the 48 US mainland states. A ninth shipping zone is for the US territories beyond the mainland.

Significance of zones

Free and fast shipping are essential for today’s customers. For this reason, keeping a tab on shipping rates is necessary. Shipping zones help in determining the shipping rates of parcels. In addition to the weight of packages, the dimensions also affect the shipping rates. Further, the cost and time of delivery of packages are vital factors in calculating shipping prices. For example, a parcel to be delivered in the same Zone (Zone 2) will take less time, less fuel, and will cost less when compared to a higher zone (Zone 8). Higher shipping zones cost more for size-able packages.

FedEx shipping Zones

Every year FedEx publishes its service guide with updated shipping rates by zone and weight. Shippers need to enter the package’s destination zip code to calculate the shipping rate. The standard FedEx zones start from zone 1: 0-50 miles till zone 8: More than 1801 miles. FedEx zones are available for both domestic and international shipments. Also, FedEx Express services deliver parcels fast, which is beneficial for businesses promising quick delivery. Further, FedEx offers negotiated rates for shippers with high-volume packages.

UPS shipping Zones

Shippers can understand the UPS shipping zone by entering the destination zip code on the UPS website. In addition, shippers can download the zone chart table. It gives information about shipments starting with the first three digits of the recipient’s zip code. For instance, the destination zip code which starts from 004 is Zone 2 for UPS ground services, and Zone 302 for UPS 3 Day Select service. Further, shippers can calculate the shipping rates by learning about UPS shipping zones.

Advantages of understanding Shipping Zones

Shippers benefit by learning about zones. As a consequence, they can strategize by:

  • Lowering Shipping costs

Shippers can reduce the transit time of products by partnering with third-party logistics companies. When shippers’ products are spread over many fulfillment centers closer to customers, it will keep shippers from paying high prices. Alternatively, shippers can reduce shipping costs with a single fulfillment center in a location where there are many customers.

  • Offering free shipping services

Shipping businesses offer customers free shipping if the parcel delivery is in the same zone or the next one. If the parcel is of a specific weight, shippers can give free shipping to customers.

  • Zone Skipping strategy

Additionally, shippers use zone skipping strategy to move the parcels near customers or the destination. Businesses can store their products in selective warehouses in some zones. Then, they can deliver the shipments to customers as and when required. For instance, FedEx Ground Economy uses the United States Postal Service (USPS) for the final-mile delivery of parcels. It helps in reducing the shipping costs.

  • Ability to choose the best parcel carrier

Shippers can choose a reliable parcel carrier to deliver their parcels by understanding the different zones. UPS and FedEx have different shipping rates for different shipping zones. Based on the services adopted by customers, shipping businesses can choose which parcel carrier delivers the parcels quickly and efficiently.

Audintel advises its clients regarding UPS and FedEx shipping rates. We understand the complexities of UPS and FedEx shipping zones. When shipping packages, our experts help clients choose the type of service and provide tools like rate calculator to compare between carriers. Audintel helps clients in negotiating agreements with parcel carriers.

The bottom line

UPS and FedEx shipping zones vary from each other in terms of service, weight, dimensions of packages, etc. But, this knowledge is necessary for shippers when negotiating with parcel carriers. Shippers can negotiate for discounts and other incentives by understanding the intricacies of zones. And so, if you are a shipper looking to deliver goods at fast speed and low costs, read on about UPS and FedEx shipping zones. For further clarification, you can call us at +1 (619) 354 8539 or contact us by clicking here. In addition, you can visit the Audintel website.

UPS and FedEx shipments

Our top ten reasons for delays in UPS and FedEx shipments

by BlogSpend Management

Online shopping has both been a boon and a bane for retailers. There is a rising demand for on-time delivery of goods in a day. Shippers and parcel carriers are racing against time to meet customers’ expectations. But even so, UPS and FedEx shipments are delivered late.

Delayed shipments negatively impact customer experience, thus causing loss of revenue. Why are UPS and FedEx shipments delayed? In this blog, let us study the top ten reasons for shipping delays.

Top ten reasons for delays in UPS and FedEx shipments

There are many reasons for UPS and FedEx shipping delays. FedEx and UPS shipping locations play a vital role in delayed shipments. In addition, UPS and FedEx delivery times vary depending on the service chosen by shippers. So, selecting the correct parcel carrier is essential for order fulfillment. Listed below are the top ten reasons:

Weather-related delays

Bad weather conditions are one of the causes of shipment delays. Inclement weather, such as blizzards, tornadoes, rainstorms, etc., makes it difficult for FedEx and UPS drivers to make deliveries on time. These delays are not eligible for a money-back guarantee by UPS/FedEx. Shippers need to inform their customers in advance of weather-related delays to show commitment to customers.

Disasters

UPS and FedEx shipment delays are due to natural and human disasters. Recently, pandemics, wars, social and political unrest, famine, floods, fires caused many shipping delays. Restrictions on the movement of goods and people have adverse effects on transportation. Hence, the delay in UPS and FedEx shipments.

Wrong documents

Several documents accompany UPS and FedEx packages. A delivery exception occurs when a parcel’s label is wrong. A commercial invoice containing the items expected by the customer is to be a part of the package. Improper documents need to be rectified, thus delaying the shipments.

Illegal or Hazardous materials in a package

UPS and FedEx label some goods as prohibited and restricted items. These goods include:

  • Alcoholic beverages
  • Ammunition
  • Firearms and weapons
  • Live animals
  • Precious metals
  • Fresh food and more

The entire list of prohibited and restricted items is available at UPS and FedEx sites. Shippers need to provide a declaration regarding the goods before they can be delivered. As a result, delivery delays occur.

Missing custom clearance documents

It is necessary to have custom clearance documents for international UPS and FedEx shipments. The documents include a commercial invoice, certificate of Origin, North American Free Trade Agreement Certificate of Origin, Electronic export information, and shipping label. The package is held at a customs facility or the carrier’s distribution facility when any documents are missing.

Incorrect address

Packages need correct addresses for on-time delivery. Wrong addresses on packages cause delays in FedEx and UPS shipments. For instance, customers having several delivery addresses may give the wrong address to shippers. Or shippers’ systems may enter the incorrect address for the package. Further, a delivery executive may deliver the parcel to the wrong apartment by misreading the label. Whatever may be the reason, the parcel carrier has to pick up the package from the incorrect address and deliver it to the correct address, thus causing a delay.

Holiday surge

Thanks giving, Christmas, or any National Holiday benefits businesses. However, due to the increase in shipping volumes, customers are advised to shop early. Ideally, parcel carriers offer holiday deadline dates, so customers get their packages in time. But, holiday shipments may overwhelm parcel carriers’ capacities, thus causing delays.

Unavailability of the recipient for package

For package delivery, FedEx requires a recipient’s signature to deliver parcels. Sometimes, at the time of delivery of packages, recipients are unavailable at the address. But, if the recipient is a business, and a parcel arrives outside business hours, FedEx attempts delivery another day. Failed delivery attempts by parcel carriers are the reason for the return of shipments by parcel carriers.

Poor performance of shipping carriers

Shipping carriers may suspect illegal items in packages and therefore delay shipments. Further, UPS and FedEx have different delivery times and schedules for various packages. Alternatively, prioritized parcels may get preference over others. Shipping carriers’ performance is poorly rated even if a package arrives late at a fulfillment center. All these factors cause delays in shipment.

 Staff shortage

UPS and FedEx face labor shortages for many reasons, including pay and benefits. For the past two years, shipping carriers finding it difficult to retain employees. It is mainly due to people opting for working from home and not wanting the stress of blue-collar jobs. Thus, causing an impact on UPS and FedEx delivery times.

How to prevent UPS and FedEx delivery delays?

Shippers need to address the areas where the delays are occurring. Our tips for preventing UPS and FedEx shipping delays include:

  • Cross-checking shipping information for incorrect addresses and shipping labels
  • Open communication with customers regarding delays due to bad weather and disasters
  • Automating the custom clearance documents and other necessary documents
  • Order in advance to beat the holiday surge

Partnering with Audintel helps shipping businesses keep track of each shipment. Our clients benefit immensely from our customized dashboards and shipping reports. Shippers receive refunds for delayed shipments from parcel carriers with ease. Audintel‘s team helps shipping businesses to negotiate good carrier contracts and save money.

Conclusion

Delivering packages on time is easier said than done. There are lots of variables involved when UPS and FedEx deliver packages. Our top ten reasons for delays in shipments and ways to prevent delays give a brief insight regarding delayed shipments. However, keeping track of delivery expectations is best left in the hands of experts, like Audintel. We help shipping businesses deal with UPS and FedEx shipping delays. Still unsure about what to do in case of shipping delays, call us at +1 (619) 354 8539 or contact us by clicking here or visiting the Audintel website.

UPS or FedEx contracts

UPS or FedEx contracts: Negotiate with shipping data advantage

by BlogCost Optimization

Lately, negotiations with parcel carriers are becoming more complicated. Do you often wonder whether your UPS or FedEx contracts give you the best shipping rates? Are you paying extra for services you don’t need? Shipping companies have a better idea in contract negotiations with only their shipping data.

Carrier contract negotiations were a part of our discussion in our earlier blogs. This article will explore the importance of shipping data in carrier contract negotiations.

Small parcel contracts with UPS and FedEx

Shipping companies enter into agreements with UPS and FedEx for small parcel shipments. Parcel carriers try to make as much profit as possible with complex shipping information. But, businesses can maximize their UPS and FedEx small parcel contracts with the knowledge of their shipping data. Companies need to understand their shipping spend and profile to negotiate with parcel carriers. For instance, an invoice has added Surcharge, based on the shippers’ products. However, during contract negotiations, clarity on the accessorials and discounts is a part of the discussions. Example: Additional Handling Surcharge.

Impact of General Rate Increase on negotiations

FedEx and UPS have announced their annual General Rate Increase (GRI). (check out our blog on this). GRI is not only for accessorials but prices are also based on each service, zone, and weight of packages. The contract negotiations with UPS and FedEx need to discuss GRI specific to a shipper’s profile. The contracts need to include clauses that save money for businesses even if there is a change in shipping rates later. Audit companies understand the nuances of GRI and list rates of UPS and FedEx. Partnering with Audintel will make the task easier for shippers.

Shipping knowledge- shippers’ advantage

Knowledge regarding list rates, surcharges, and other data is essential during contract negotiations with parcel carriers. Shippers have a competitive advantage over the parcel carriers with this knowledge. For this reason, shippers have to consider the following aspects during contract negotiations with UPS and FedEx.

1.  Impact of DIM factor on pricing

DIM is the Dimensional weight of a package. DIM weight is based on length, breadth, height dimensions and DIM factor. Shipping carriers like FedEx and UPS calculate shipping prices based on DIM weight and actual weight. Further, shippers can negotiate DIM factor and save money.

2. Understanding Multi weight/Hundredweight services

Companies that have multiple packages weighing more than 200 lbs. to be sent to a single location opt for FedEx’s Multi weight service. This service is only available for companies having shipping contracts with FedEx. UPS Hundredweight service works on similar lines and is for multiple-package shipments. Shippers should understand the potential costs and negotiate rates with FedEx/UPS representatives.

3. Avoid Money-Back Guarantee waiver

Money-Back Guarantee (MBG) waiver waives the right to file refunds for late shipments. Shipping companies should avoid signing agreements having an MBG waiver. Though UPS and FedEx will offer discounts for an MBG waiver, businesses need not sign such contracts.

4. Incorporate minimum reduction

Each parcel shipped by UPS and FedEx has a minimum charge based on service, weight, and zone. Minimum reduction is a negotiated value aimed to reduce the published minimum charges. Shipping companies may save money on their shipments with minimum reductions clause. Shippers have to make sure that it is a part of the agreement during negotiations.

5. The necessity of accessorial discounts

UPS and FedEx increase accessorials or surcharges annually along with rate increase. Businesses need to be careful not try to negotiate accessorials for services not used by them. In addition, shippers can ask for more discounts on accessorials used by them from parcel carriers and save money. In short, it is necessary to have discounts on UPS and FedEx contracts during contract negotiations.

The above aspects need to be understood by shipping businesses. Further, it has to be part of the discussion with parcel carrier representatives during contract negotiations. In addition, businesses unsure how to proceed with UPS/FedEx contract negotiations need to seek help from experts, such as  Audintel.

How partnering with Audintel will help?

Audintel provides the requisite information about UPS and FedEx to its customers. Our customers have their shipping profile data handy when negotiating with the parcel carriers. Audintel advises businesses about making changes in their UPS/ FedEx contracts that will benefit them. As a result, shipping companies save money when they partner with Audintel. In addition, we help customers get the best possible deals with data strategies.

Final Thoughts

Carrier contract negotiations are complex. However, having shipping data in hand is an advantage for shippers. Audintel provides data to businesses for better UPS/FedEx contract negotiations. Shipping contract negotiations are made simple with shipping data in the hands of shippers. Alternatively, Audintel provides its expertise in carrier contract negotiations to its customers. We are just a step away-call us at +1 (619) 354 8539 or contact us by clicking here or visiting the Audintel website.

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Pragmatic details for shippers’ contract negotiation

by BlogCost Optimization

Shippers need efficient parcel contract negotiation with parcel carriers to maximally reduce their shipping charges. The shipper needs to know the shipment trends and characteristics before moving for carrier contract negotiation. There are many factors that affect the cut down in pricing which needs to be negotiated carefully. Being clear with these and also knowing where the carrier can leverage his profits, the negotiation table becomes a clear platform for the shipper.

Some factors to be aware before contract negotiation

Know your shipping volume and spend based on service and zone

The shipper has to be clear about how much volume and spend he does on an average per year. This should be further split into service-based and zone-based. This would make it easy to focus on key spend areas for negotiating discounts. The key spend areas should have flat discounts or in carrier terminology, the base discounts. Also, while negotiating, the carrier, knowing these details, generally, negotiate for less discounts to maximize their profits. The shipper has to be careful in these areas and not get carried away when the shipper offers more discounts in other areas.

Know which surcharges(accessorial charges) you incur more in volume and spend

The shipper should be aware of both volume and spend as discounts for surcharges are quite lucrative. One should be clear and discrete to ask for a specific percentage of discounts in these surcharges. Some surcharges have high pricing per package and it helps to get significant discounts on them. Also, it’s worth having discounts on all accessorial charges that have minimum threshold packages.

Know if you have Dim weight or actual weight in volume and spend

Dim factor is crucial if you are sending customized packages and more often the carrier applies dim weight than the actual weight. Negotiate dim factor, especially for the packages in the services that have this. The factor should also be significant to get close to the actual weight or less. This is an additional asset to shipping contract negotiation.

Know your weightage of Domestic versus International shipping

Carriers tend to give inclined discounts to either domestic or International packages depending on the spend. The shipper can get carried away and lose on the other side. One has to be careful to get the right balance of discounts in both areas.

Know if packages are hitting minimums in large volume

More often, the packages can hit minimum and the package discount is compromised. Knowing the volume can have the shipper negotiate for the Minimum Reduction Amount (MRA). Proper MRA value helps in getting savings for shippers.

Things to be beware on the contract negotiation table

Carriers’ focus

Carriers are for customers’ satisfaction and they are generally well advised on the package flow of the shipper. They know which discounts are crucial. They make the shipper comfortable to negotiate but ensure that these areas are not discussed much. Always be alert in negotiation with the carrier. They tend to divert focus from the necessary discounts to other areas where shippers would not fetch much.

How much discount can be fetched for the annual spend of your stature?

Generally, the other shippers’ discounts are not known and hence, the trend of how much to bargain for each category of percentage has to be known from experts. The carrier is not going to give more than what the shipper asks!

Focus on getting more of Grace/Base discount than earned/performance discount

It’s worthy to get Grace/Base discount as it’s a flat discount and guaranteed. Earned/performance discount places variation based on the spend. Unless the shipper is absolutely sure of his spend, it’s always recommended to secure the Grace/Base discount.

Fetch the necessary Grace/Base discount, dim factor, surcharge discount without fail

Do not come back from the negotiation without fetching the necessary Grace/Base discount, dim factor, surcharge discount. The shipper should be prepared before the meeting with the carrier on each specific aspect and gracefully convince the carrier on these.

Consider alternative carrier and negotiate to know the value of your shipping

Its always recommended approaching more than one carrier when one is not satisfied with the present carrier. By analyzing the past shipping details of the shipper, auditing companies will help in deciding which carriers to choose. Usually, for parcel shippers, UPS contract carrier agreement and FedEx contract carrier agreement are complementary to consider.

Be careful in negotiating minimum performance to make the discounts valid

The carrier always has a clause of minimum performance for aspects of the agreement to be valid. One should be careful to set these at the minimum for the rainy season.

How does Audintel help?

Audintel helps shipping companies analyze and identify shippers’ data. Analysis of key areas where they need to be careful to get the maximum discount and to select alternate carriers. Also, the minimum threshold in others.  Audintel reports help the shippers to analyze the new contract presented by the carrier. The savings using already shipped packages with the new contract is presented. This carrier contract optimization can be done either for complete contracts or amendments.

Final Remarks

Shipping companies need a lot of input on their data. The trends where other shippers fetch the discounts. The carrier gives varying discounts depending on the awareness of the shipper. All aspects where discounts can be fetched with the maximum are clearly understood. This means, critical reporting capabilities and cost model philosophy clearly presented to the shipper. All assistance is given to fetch secure new and improved carrier rates. For further advice and services, call us today at +1 (619) 354 8539 or contact us or visit our Audintel website.

UPS GSR

How to receive UPS Guaranteed Service Refund (GSR) seamlessly?

by BlogTSM Services

UPS Money-Back Guarantee, also known as UPS Guaranteed Service Refund (GSR) in the US. The UPS GSR is for 50 service failures. Did you know you can reduce shipping costs with the UPS GSR? What are the services for which your company gets a guaranteed service refund from UPS? How to claim refunds from UPS? We will try to answer these questions in this article. In addition, we will explore the latest updates in 2022 regarding UPS Guaranteed Service Refund (GSR).

Reduce shipping costs with UPS Guaranteed Service Refund

Shoppers tend to abandon their shopping carts if the shipping costs are high. Similarly, shipping companies leave valuable money if they do not claim refunds from parcel carriers for service failures. UPS commits to deliver packages by a scheduled date, time, and location according to their negotiations with the shipping companies. Each parcel that misses its delivery deadline is eligible for a refund from UPS. With UPS Guaranteed Service Refund, shipping companies can reduce shipping costs to a large extent.

Services that offer UPS GSR

According to UPS Service Guide, 2022, UPS guarantees on-schedule delivery to 50 states and Puerto Rico. UPS Service Guarantee is for the following services:

  • UPS Air Services
  • UPS Hundredweight Service® Air Services
  • UPS 3 Day Select®
  • UPS Hundredweight Service® UPS 3 Day Select®
  • UPS® Ground
  • UPS® Ground with Freight Pricing
  • UPS Hundredweight Service® Ground

In addition, UPS guarantees on-schedule delivery of the following services, provided customs clearance by UPS Supply Chain Solutions brokerage offices.

  • UPS Worldwide Express Plus®
  • UPS Worldwide Express NA1®
  • UPS Worldwide Express®
  • UPS Worldwide Express Freight® Service
  • UPS Worldwide Saver®
  • UPS Worldwide Expedited®
  • UPS 3 Day Select® from Canada
  • UPS® Standard

UPS Service Guarantee Suspension

Due to the coronavirus pandemic and government restrictions, UPS has suspended UPS Service Guarantee. The Service Guarantee is under suspension for other UPS services. However, UPS reinstated a few Services in some countries from April 5, 2021. The continuation of select services gave shippers a breathing space. Shipping companies were able to deliver their packages on time to customers. However, shippers need to ensure that their recipient’s business location is open for UPS to deliver packages on schedule.

UPS Guaranteed Service Refund – How to file a claim?

A lost package, parcel not delivered on time, invalid residential surcharges on packages, etc., are eligible for UPS GSR. To receive refunds from UPS, shipping companies need to request a refund. We had discussed refunds from UPS and the process for getting GSR in our earlier articles. Before requesting a refund, companies need to file a claim. The claims should cover the details of the package, the role of the person filing the claim, documentation accompanying the claim has to be submitted to UPS. Not every shipper can file a claim with UPS.com due to shipper restrictions, account authentication, etc. In short, shippers need experts like Audintel for help in filing a claim for UPS GSR.

Challenges in receiving UPS refunds

UPS Guaranteed Service Refund is a time-consuming process that requires resources. It is a big challenge for shipping companies. In addition, there is a possibility of missing out on errors made by carriers for each invoice. Further, shipping companies have to abide by the conditions and exceptions to the UPS Service Guarantee to get a refund. Automated auditing systems meet the challenges faced in receiving UPS refunds. An automatic audit system optimizes billing errors and smoothly manages the refund process. Audintel is a parcel audit company that offers automated audit processes to its clients.

Benefits of partnering with Audintel

UPS offers a free Guaranteed Service Refund (GSR) for parcel delivery later than the committed delivery time. Audintel ensures that clients receive the refund securely and safely in their accounts. Our automated services help to recover UPS refunds for our clients. Audintel has dashboards that display refunds by services, carriers, etc. We provide customized dashboards and reports for our clients. The refund recovery offered by UPS Guaranteed Service is visible to our customers at a glance.

Conclusion

Businesses are facing supply chain problems due to high demand by online shoppers. Due to labor shortages, companies do not have the resources to secure UPS refunds. Further, shippers have to keep track of the service failures of UPS to request for UPS Guaranteed Service Refund. For this reason, partnering with Audintel helps businesses simplify the refund process and save money. You can learn more about the UPS Guaranteed Service Refund process by contacting us. For further information about our services, call us at +1 (619) 354 8539 or visit the Audintel website.