Since the carriers raise rates yearly, the minimum charge will continue to grow. The minimum charge effectively robs a company of those discounts. The vast majority of shippers are affected by minimum charges each day. Carrier Package Minimum Charge in a Nutshell We are always happy to help shippers give us a call anytime. Our contract consultants can help lower your shipping costs by understanding the overly complicated carrier agreements, then figure out how to make it work for your company. Refund Retriever can help identify your shipments affected by the minimum net charges. The biggest questions are how many of your shipments are hit with the minimum net charge? Then, how large a reduction needs to be allowed to maximize your negotiated discounts? Package minimums are negotiable, even if your carrier rep insists they aren’t. A shipper will lose $1.40 in discounts for a 4-pound package send to any location in zone 2. This chart shows the dollar impact per package with a minimum net charge in place. The effective discount with the net minimum charge will significantly impact shippers with low-weight shipments. The effective discount for a zone 2 one-pound packing is zero percent or no discount. These charts indicate all the zones and weights affected by the net minimum charge. The chart to the right shows the cost of each package with the shipper’s negotiated 30% discount off published rates. Here are the UPS ground published package rates for all zones, one to 10 pounds. All one-pound packages going to any zone will receive a discount under the negotiated 30% rate. Remember, the company will pay the greater of the negotiated rate or the minimum charge of $7.57. This UPS ground shipper with a 30% discount. UPS makes this much easier to find, one section with all services listed labeled “Minimum Net Charge.” How Does a This Affect a Shipper?įor example, we put together many years ago when the minimum was only $7.57.
FedEx calls this “Minimum Package Charge” or “United States Minimums:” Each service level will have the Minimum Package Charge detailed.
Where to find the minimum net charge in your agreementsĮach carrier uses different contractual language to specify minimum charge information.
0 kommentar(er)
