As has become an annual rite of passage this time of year, FedEx and UPS are again implementing a price increase. Welcoming us to 2025.
FedEx/ UPS have incredible market dominance in North America and have the power to increase their cost to small and medium size shippers.
But the 5.9% is an average and does not include surcharge updates
With announced, Fedex and UPS show their market dominance. Don’t assume that your overall cost to ship will increase by only the general rate. Accessorial fees for beyond points, and other rules and services may drive your rates much higher.
Take the time to do the analysis, or seek the advice of a transportation advisory service to help you to negotiate the best rates.
Find the best shipping modes, processes and carrier options. Strengthening your transportation team - even if you are a team of one! A trusted brand for over 40 years of cross border shipping. Contact our team for a consultation.
FedEx and UPS annual cost increase is not negotiable for most companies. The best way to manage your costs is to look at alternative carriers and methods.
FedEx and UPS are market dominant carriers with investor pressure to grow their profit margins.
As part the annual review, consider the following ways to reduce your shipping costs with alternatives.
FedEx and UPS are well known brands that demand a premium. However, there are "second level" carriers that can provide similar services at a discount. This can especially be true for international destinations.
It can seem counter intuitive that a reseller of FedEx or UPS can be cheaper. And we view the larger resellers "comparison sites" as a bit misleading. The advertised savings of +50% to still be expensive. Having said all that, the best "resellers" are actually logistics consultants.
At Jet Worldwide, we often recommend alternative methods that we do not offer. And we have many alternative options you may have not previously considered.
Some guidelines to consider:
Ground and ocean can be considerably less expensive. You may also want to consider using Canada Post for non urgent low weight items.
Dimensional weight can add significant costs, particularly for international and express shipments. Useful information regarding dimensional weight.
There are only four primary options for international and domestic shipping from Canada:
With the many minimum surcharges for ocean shipments, shipping smaller consignments via air is probably the cheapest price. This is especially when you consider dock to dock . Generally, shipments of less than around 150 kilograms are cheaper via air. Understanding ocean shipping from Canada.
Diversification from air to sea freight can have a huge cost savings. The transit times vary but generally average between 1 to 2 months. A proven strategy is to send a smaller shipment via air freight for faster market access. And follow up the original shipment with pallets to lower the average cost.
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Small Shippers can benefit from resellers, including Jet Worldwide. Although Jet is a leading parcel delivery re-seller in Canada, we are truly a transportation specialists with a wide range of options.
Jet's has been providing international delivery expertise for over 40 years! With an incredible team with decades of experience.
The benefit is great flexibility and better customer support. Our solutions go beyond simple delivery and include full support services.
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