05 Nov Parcel Carrier GRI Analysis

Posted at 09:00h in Freight Audit, Freight Bill Auditing, Parcel Invoice Auditing, Transportation News by

SSI industry experts can create for you a parcel carrier GRI analysis by using your historical data so that you achieve clarity on the full ramifications of how a new rate schedule will affect your shipping spend.

SSI PARCEL SPECIALISTS HELP YOU SORT OUT THE TRUE IMPACT OF 2021 RATES

For supply chain, operations, logistics, and shipping managers, sorting out the actual cost impact of your parcel carrier’s 2021 GRI is confusing, complicated, and time-consuming. In fact, many shippers make a big mistake by underestimating how a general rate increase will impact their business.

Because real-world insights are essential for the financial health of your company, SSI professionals are available to help you negotiate smarter, save money, and maximize shipping efficiencies.

To learn more and receive a detailed analysis of how to mitigate the impact of a parcel carrier’s 2021 GRI, simply fill out the contact form at the bottom of this web page and we will be in touch with you promptly.

PARCEL CONTRACT OPTIMIZATION SERVICES

  • Save by working with our professional parcel carrier pricing managers

  • Leverage our deep experience in parcel contract administration

  • Receive actionable rate impact mitigation measures

  • Gain insights from world-class analytics for ongoing improvements

As a part of our comprehensive review of your parcel and small package shipping requirements, our skilled team will identify areas that represent opportunities for parcel savings, offer authoritative advice on parcel contract negotiations, and mitigate year-over-year rate increases. SSI will empower you to fully optimize your parcel carrier contracts.

2021 PARCEL CARRIER GRI SUMMARY

In September, FedEx announced a 4.9% GRI for 2021. However, as you learned in 2020, your overall shipping costs with the carrier are likely to be higher than this average figure. In part, that’s because accessorials, fees, and surcharges will see an increase of 4.9% to 9.5%. Of note, parcels weighing 1 to 5 lbs. will go up an average of 6.6%, which is an especially tough blow to e-commerce shippers. Further, FedEx SmartPost rates on packages weighing over 9 lbs. will have a 27% premium over FedEx Ground.

In addition, FedEx will increase the ground minimum rate from $8.23 to $8.47 per parcel in 2021. That’s relevant because even if your business negotiates a discounted rate, shippers cannot be billed below the minimum rate. Also, take note that FedEx announced 2021 modifications and additions to nearly 40 other accessorials, fees, and surcharges, including a new 6% late fee on unpaid invoices. To learn more about the 2021 FedEx GRI, see the current FedEx rate schedule.

UPS is matching the 4.9% GRI announced by FedEx. However, their announcement occurred on October 30th. This gives you precious little time to determine the true impact on your shipping spend before the rates take effect on December 27th. To learn more about the 2021 UPS GRI, see the current UPS rate schedule. As with other carriers, the UPS GRI is simply an average figure that will not reveal important details relevant to your real-world shipping requirements.

CONTACT SSI FOR EXPERT PARCEL CARRIER GRI ANALYSIS

Our team is ready to help you sort out the true impact of your 2021 parcel carrier’s GRIs. Gain a competitive edge by being well informed and armed with data insights so you can negotiate optimal carrier terms based on your own business needs, not theirs.

Contact SSI to connect with one of our parcel industry experts.