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Several parcel carriers have recently made changes to the way they calculate fuel surcharge over the last few weeks, with UPS leading the charge, followed by FedEx and more recently OnTrac. What used to be a rare occurrence, usually happening less frequently than every year, is now happening every 4-8 months. This is just another example how carriers use surcharges to improve revenue in a down market. Are you positioned to know about these upcoming changes, estimate and track how they will effect your bottom line, and mitigate their impact? Exploring alternative carriers and services that use a simple flat-rate pricing model is a great way to avoid these unexpected costs and budget more accurately. As is negotiating the fuel surcharge directly with carriers that use one. But most importantly, it all starts with tracking your surcharge costs. If you don’t have the resources in-house to monitor and mitigate surcharges like fuel, it is worth exploring technology and third-party solutions, such as Shippingwise. What else can a shipper do to mitigate and get ahead of fuel surcharge calculation changes? #ecommerce #logistics #ups
