Hi,
I'm looking for an excel spreadsheet that will analyze and compare FedEx and UPS shipping rate discount offers based on OUR shipping characteristics.
More specifically, based on our annual volume, these shipping firms have offered us discounts off of their published base rates on their web-site (before fuel and other "accessorial" charges are applied). This will require some knowledge of the parcel industry, and the various other costs shipping companies charge to balance their profitability. That is, they may give a break on the base rate, but offer no discount or break on accessorial charges. This balance keeps their profitability in tact.
Note: an "accessorial" is an additional fee attached to the total cost of a shipment. There are upwards of 80 different charges that could be added to a shipment's total cost. (Examples: liftgate charge or address correction charge.)
Additional Info:
FedEx and UPS typically announce an average rate increase (GRI, or General Rate Increase) each year of say, 6.9%. While the average may be 6.9% across all types of shipments they offer, it's important to understand the rate increase related to an individual company's shipping characteristics--whether a company ships "ground commercial" or "Express," which is by air. Or, what the most typical type of shipment a Co. makes. Our Co., for example, primarily ships about 95% "Ground Commercial."
Each shipping Co. posts its "base rates" (retail rates) on their web-site based principally on two factors: 1). package weight, and, 2). distance traveled. There are additional factors (and costs) based on how fast the package arrives (you'll pay more for overnight than 3-day delivery, for example). Fuel is added afterwards as a % of the total base rate charge. Fuel charges vary each month, but Ground packages might be 8.5%, and Express might be 14% of the total base rate. (example: if a ground package costs $24, the fuel surcharge would be about $2.04, or a total of $26.04). Thanks
I'm looking for an excel spreadsheet that will analyze and compare FedEx and UPS shipping rate discount offers based on OUR shipping characteristics.
More specifically, based on our annual volume, these shipping firms have offered us discounts off of their published base rates on their web-site (before fuel and other "accessorial" charges are applied). This will require some knowledge of the parcel industry, and the various other costs shipping companies charge to balance their profitability. That is, they may give a break on the base rate, but offer no discount or break on accessorial charges. This balance keeps their profitability in tact.
Note: an "accessorial" is an additional fee attached to the total cost of a shipment. There are upwards of 80 different charges that could be added to a shipment's total cost. (Examples: liftgate charge or address correction charge.)
Additional Info:
FedEx and UPS typically announce an average rate increase (GRI, or General Rate Increase) each year of say, 6.9%. While the average may be 6.9% across all types of shipments they offer, it's important to understand the rate increase related to an individual company's shipping characteristics--whether a company ships "ground commercial" or "Express," which is by air. Or, what the most typical type of shipment a Co. makes. Our Co., for example, primarily ships about 95% "Ground Commercial."
Each shipping Co. posts its "base rates" (retail rates) on their web-site based principally on two factors: 1). package weight, and, 2). distance traveled. There are additional factors (and costs) based on how fast the package arrives (you'll pay more for overnight than 3-day delivery, for example). Fuel is added afterwards as a % of the total base rate charge. Fuel charges vary each month, but Ground packages might be 8.5%, and Express might be 14% of the total base rate. (example: if a ground package costs $24, the fuel surcharge would be about $2.04, or a total of $26.04). Thanks
