UPS 2009 Rate Analysis

Richard Michals News & Articles

Dear Valued Customer,

Below you will find a brief summary of the impact of the carrier rate increases for 2009. As always this is expected; however, it comes at a time when the slumping economy magnifies its effect. The carriers clearly must protect their businesses and profitability in this environment of lower shipment counts. The customer must also seek to protect their business. Being aware of the impact, having the visibility of your shipping personality and shipping smarter are the necessities of navigating through these difficult times.

The carriers are also making huge demands on customers to waive their rights to service guarantees. We have worked closely with hundreds of customers throughout the years implementing internal mechanisms and streamlining the processes that facilitate and diminish the time between order receipt and tender to the carriers. These mechanisms enable smart shippers to maintain a competitive advantage in order fulfillment and thereby customer satisfaction. Relieving carriers of service performance commitments can result in double-digit percentage service failure; leaving shippers wondering why they have implemented painstaking internal quality control measures?

As you will see below, one of the most significant increases comes via CWT Hundred Weight Service. In some cases as high as a 95% increase! Please contact us for CWT assessments and other LTL shipping options.

If you think it is time to open discussions with your parcel carrier with regards to pricing and contractual considerations, please call us for contract reviews.

We will continue throughout 2009 and beyond to provide our customers the most comprehensive and insightful visibility of shipping expenditures in the industry. 2009 will mark dynamic new utilities and applications from PMAC in deciphering your freight spend, auditing solutions and management.

Best regards and the happiest of holidays!

Parcel Management Auditing and Consulting, Inc.
Rich Michals

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