In our recent Two Minute Warnings, we have been focused on issues that are likely to have a significant impact on your freight budget in 2022. And right now there are a whole bunch of issues that shippers need to consider as they finalize their freight budgets for next year.
This week, in looking at looking at what is in store for parcel shippers in 2022, we interviewed our long time friend and parcel expert Jerry Hempstead. Since you are very busy and likely pressed for time, let me make this short and sweet: If parcel shipments are an important part of your transportation and supply chain areas, you must listen to this interview. I’d also encourage you to share it with anyone in your organization who needs to know why your parcel costs could be much higher next year and why service reliability may be lower. 
Why do we feel so strongly about this? Because in this must-listen interview Jerry does an outstanding job of explaining the impact of the recent changes that were announced by FedEx, and the increases we expect to see from UPS in the near future.
For those of you who think your cost increases will mirror the 5.9% increase proposed by FedEx, guess again. As Jerry explains in detail, you’ll probably want to revise that number because you’ll have a better understanding of why your increases will likely be more in the range of a 10-12% increase.
There are things that shippers can do to mitigate increases of this magnitude but it will require understanding the parcel markets and changes that your company can consider in addressing issues that are important to FedEx and UPS. If you have questions or want to discuss these strategies give us a call or send us an email.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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