Understanding the Impact of Annual Small Parcel Increases

Understanding the Impact of Annual Small Parcel Increases
Lauren Mecchella Plate - Monday, December 12, 2016

As predictable as January following December, so too has become the annual rate increases published by the Small Parcel providers. These changes typically include what appear to be subtle modifications in base rates, surcharges, and dimensional weight provisions. Leaving many shippers wondering how do these increases affect me, my transportation spend, and my budget for the upcoming year?

With the understanding that annual increases cannot typically be fought or denied (see previous blog post “Incorporation by Rules Tariff”), the next step is to understand how the modifications will impact your spend so that you can budget appropriately.

Adjustments for the upcoming year are posted each Fall on the provider’s website and will outline the base rates, zones, service levels, service types, and dimensional weight provisions that will be affected. To accurately calculate how the projected increase will affect your business, we recommend downloading historical shipment detail from the TTC Small Parcel Adhoc, identifying the packages, service levels types, etc. utilized by your business in the past and applying the appropriate adjustments. This will provide a targeted understanding of the impact against your business model and distribution network. If assistance is needed the in this calculation or methodology, feel free to contact your TTC account representative and we would be happy to help.