2022 Rate Increase Might Cost More Than You Expect
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, thatâs 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 carriersâ base rates.According to the press release, âwhile 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.â UPS isnât alone. The analysis shows that âFedEx'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.â And thatâs 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 carriersâ rising costs?
How can you lower shipping costs in 2022?
Rising rates can be overwhelming for businesses of any size. If youâve factored the 5.9% increase into your 2022 budget, learning you may owe double that amount is a tough pill to swallow. Thereâs good news, though.ShipRx built our company to help businesses just like yours achieve all of their shipping goalsâ at the lowest possible price. Weâve worked for the carriers, and weâve 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
Many shipments are eligible for service guarantees. That means that if the carrier doesnât fulfill their service as promised, youâre entitled to a refund or credit. ShipRxâs 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 youâre saving money, so get in touch today, and letâs get started!