2007 General Rate Increase – What's a Shipper to Do?
Over the last several years, small parcel carriers have become increasingly aggressive and elusive in the GRI’s published each year, and 2007 will be no different. Throughout this article we will be focusing on five specific aspects on the 2007 general rate increase.
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Tired
of the ‘Nickel and Dime’ Treatment from Parcel
Carriers?
Wouldn’t it
be nice if you could dictate substantial rate increases every year to your
customers and all of your competitors would follow your lead? We’ll,
UPS does! Today's small parcel carriers are in a no lose situation.
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Accessorial
Comparison
Carriers know that all eyes are on their published rates, so they continue
to add and increase accessorial charges at a much greater pace than the
published rates. Many of these accessorial charges have increase by double
digit percentages this year and some as much as 40%.
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Are My Parcel Rates Too High?
The
key to a successful small parcel rate negotiation depends on
three things: Knowing
your shipping and packaging characteristics, Knowing
how your characteristics rank in your carriers’ profit
scale, and Knowing
your carriers’ operating ratios and profit margins...
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