Transportation Budget Tip 3 - Understand Increases from Your Carriers

This week we’re covering the third tip in our series on how to build more accurate freight budgets. In case you missed it, in the last two weeks we covered:

• Tip #1 – Look at the Economy
• Tip #2 – What are you willing to change as a company?

This week’s tip: Understand what your carriers are doing. This tip is especially relevant in light of UPS rate increases that were announced earlier this month and will take effect December 26. I encourage you to read our guide to the UPS rate increases which goes over the changes in more detail. This was put together by our good friend and Parcel Expert Jerry Hempstead. As part of the TranzAct network, Jerry has helped many shippers control their parcel costs.

This paper will help you to understand the kind of changes you need to consider in building your budget to reflect the true cost of the rate increases you’ll face in 2017. While UPS is calling this a 4.9 percent rate increase, the reality is that for many shippers the increase could be between 5 and 7 percent depending on their shipping patterns. 

We can help you identify even more specifically how your current parcel costs will be impacted by these and other changes with our Parcel Toolbox. Give us a call today to learn more about how we can help.

If you have any questions, we’re here to help and you can get in touch with us by phone at 630-833-0890 or by email at solutions@tranzact.com.