Stop Shipping Your Money Away: Inside 2017 Rate Increases for Small Parcel

Get the scoop on changes UPS and FedEx implemented in 2017, and how it will impact your small parcel shipping costs.

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It’s no secret that two main carriers dominate the market when it comes to small parcel shipping – UPS and FedEx hold a significant chunk of the market combined. Each year, the carriers evaluate their shipping rates and make adjustments for the coming year. What typically happens is that one carrier will announce its increases, and the other follows shortly after with similar modifications.

UPS struck first this year, announcing rate increases in early September and FedEx followed shortly after with its new rates. There were a couple surprises that came along with this year’s rate increase announcements, too. First, FedEx went in a different direction in its pricing for some types of shipping, instead of following UPS with all-but-even pricing. Then, UPS followed up with further adjustments later on in November.

For businesses that utilize these carriers for small parcel shipping needs, these changes almost always mean that you’ll be paying more in the coming year. Additionally, sorting through all the pros and cons of each carrier’s rate increases to get a complete view on how much these changes will actually affect your company’s small parcel spend can seem like a daunting task.

To help you better understand the changes that each carrier is making and how it will impact your small parcel shipping costs, CU partner Transportation Impact published its 2017 Rate Increase Report. In the report, Transportation Impact examines and explains the rate adjustments that each carrier makes in each of the following areas:

  • Ground services
  • Three-day services
  • Two-day services
  • Next-day services
  • Accessorials

In addition to compiling the changes in one place and comparing them side-by-side, the report also outlines the company’s professional “verdict” on each of the changes to give you an idea of which option could be more favorable. Download the full report to learn about the rate increases and determine the options that make the most sense for your company.

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Identify Opportunities for Additional Savings

With so many variables to consider and a limited number of carriers to choose from, securing competitive pricing on your small parcel shipping needs can be a challenge. That’s why Corporate United members work with Transportation Impact to analyze their current shipping costs and find the best options to meet their needs. Learn more about how you can identify opportunities for savings on your small parcel shipping costs, and then negotiate with carriers more effectively to realize those savings.


Mark Mylett: Director, Implementation and Compliance
Mark is responsible for Category Management within the Facilities and Corporate Services verticals. In this role, he maintains the Person Protection Equipment/Safety, Material Handling, Commercial Moves, and Small Parcel/LTL category agreements. He works with member stakeholders and suppliers to provide program support, ensure contract compliance and support ongoing supplier relationships.