The rates of these fees have also gone up considerably and need to be factored. When we analyze our client’s carrier invoices, we typically find that 20-30% of their bill is made up of accessorial charges, also called value added services. Overall, we are seeing higher increases for the lighter weight items going to local zones. As you can see, based on what and where you are sending, the increases could be much larger. We highlighted the areas in yellow that are higher than the carriers listed increases. We also break out the weights because we find that many shipments are less than 10 LBs, which would include documents and small parcel. zone 5-8 (Over 600 miles) because many organizations send most of their items to local clients vs. In the chart above, we break out zone 2-4 (Less than 600 miles) vs.
The service level (based on delivery objectives), the zone it is going (Distance away from where it is being sent) and the weight. There are three main factors that determine the rate of the item. In this article, we will go over these changes, educate you on how rates are calculated and provide savings strategies that can help minimize the financial impact. Most clients should expect to see higher increases. Also, the USPS® stated that their Priority Mail® rates were going up 2.7%, but again this is overall. Based on the multiple factors, the actual increase could be significantly higher as you can see in the chart below. Both UPS® and FedEx® announced that they were having a 5.9% increase, but this is overall. While we expect increases, this year is one of the largest and it is important to understand the impact so you can properly budget or look for other savings alternatives. With inflation and our reliance on document and parcel delivery at their peak, this January, the carriers have all raised rates to their highest levels.
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