Blog / 2022 Rate Increase Might Cost More Than You Expect
2 minutes read

2022 rate increase might cost more than you expect

Over the past couple of months, we’ve reported that both UPS and FedEx increased their shipping rates by an average of 5.9%– the largest rate increase in a decade. If that news left you reeling, hold on to your stamps. The reality of the situation is far worse.

The real cost of shipping in 2022

PR Newswire published a report by Reveel, which shares the reality of the 2022 shipping climate. While rates have increased, that’s not the only factor impacting your invoice. In addition to 2022 shipping rates, you also need to consider peak surcharges, fuel surcharges, fees, and new terms that raise the carriers’ base rates. 

According to the press release, “while UPS increased its rate by an average of 5.9 percent on its rate card, the actual impact of its 2022 rates, surcharges, fees and new terms will be a 10.25 percent increase for most companies.” UPS isn’t alone. The analysis shows that “FedEx’s 5.9 percent rate increase actually represents a 12.86 percent increase for most customers when its new surcharges, fees and terms are added.” And that’s just an average. Customers using FedEx Ground Economy (a service aimed at small and medium-sized businesses) will see an average increase of 26% in 2022.

Business is booming for both of the major carriers. In October, Forbes reported that the 12-month revenues for FedEx and UPS rose by 21% and 14% respectively. The carriers are making business decisions designed to grow their bottom line. Can you make decisions that will impact yours? Or are your hands tied by the solidarity of the carriers’ rising costs?

How can you lower shipping costs in 2022?

Rising rates can be overwhelming for businesses of any size. If you’ve factored the 5.9% increase into your 2022 budget, learning you may owe double that amount is a tough pill to swallow. There’s good news, though. 

ShipRx built our company to help businesses just like yours achieve all of their shipping goals– at the lowest possible price. We’ve worked for the carriers, and we’ve helped hundreds of businesses across the US secure low shipping rates while maximizing their refunds. We do this through two ShipRx services:

  • Parcel rate negotiations 
  • Parcel audits

If you haven’t renegotiated your contract recently, it’s time to see how much you could save. You don’t need to wait until your current contract ends to see how much you could save on shipping. We’ll walk you through every step of the negotiation process to ensure maximum savings. 

Many shipments are eligible for service guarantees. That means that if the carrier doesn’t fulfill their service as promised, you’re entitled to a refund or credit. ShipRx’s proprietary audit software automatically tracks over 40 factors on every shipment you send, resulting in average refunds of 2-3%. 

Getting started with ShipRx is free. We only get paid when you’re saving money, so get in touch today, and let’s get started!

 

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