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Logistyx Increased Parcel Volume 23% with FedEx in 2020, Honored with 2021 FedEx Platinum Tier Award

Progress and innovation require working collaboratively with value-aligned partners to solve business problems. At Logistyx, we continuously deepen our ties with partners to deliver the flexibility, security, and speed customers need to accelerate success.

Our partner community includes global supply chain leaders with track records of excellence and proven commitment to the customer. This is why Logistyx is proud to partner with leading global shipping provider FedEx. As part of Logistyx’s global network of 550+ carriers, FedEx is a long-standing and leading carrier partner, providing innovative shipping solutions that enable customers to ship around the world – faster, smarter, and for less.

2020 was a year full of extraordinary uncertainties, and carriers like FedEx adopted an agile approach to shipping to create a flexible supply chain and work more effectively with shippers to address many of the challenges brought on by the COVID-19 pandemic. Carriers exhibited exceptional dependability supporting a rapid surge in e-commerce growth, an unprecedented peak shipping season, and the complexities of global vaccine distribution.

FedEx has been on the front lines, keeping supply chains moving since the onset of the pandemic and has remained a valued partner of Logistyx. In 2020 alone, Logistyx drove nearly 23% growth in volume with FedEx.

For the third year in a row, Logistyx secured FedEx Compatible Platinum Tier Award honors for 2021. Selection criteria of the award includes customer compliance; year-over-year growth in volume, revenues, and customer installations; and maintaining annual software certifications.

Designed to help organizations identify qualified, third-party shipping solutions, The FedEx Compatible Solution program requires software developers be up to date on current software for FedEx Ship Manager Server or FedEx Web Services and maintain high levels of customer satisfaction and retention. Platinum Tier status is awarded to solutions that demonstrated a high degree of capability, customer experience, and solutions.

A cloud-based Transportation Management Solution (TMS) for global parcel shipping, Logistyx’s flagship software, TME, guarantees carrier compliance, streamlines transportation execution, monitors parcel delivery movements, and identifies ongoing opportunities to increase profits per shipment. Logistyx optimizes carrier service selection and empowers shippers to deploy a more strategic, global transportation strategy to track parcel movements, provide delivery transparency, and proactively respond to unexpected events.

We’re grateful to FedEx for being a trusted partner within our extensive carrier services network and we remain committed to working together to keep driving value for Logistyx customers.

To learn more about how you can leverage multi-carrier shipping systems – and the data within them – to get the most out of your carriers and create the optimal delivery network, watch our webinar, Simplifying the Complexity of Multi-Carrier Parcel Management.

FedEx Extends Peak Surcharges into 2021

As is so often true in times of crisis, the industries hardest hit by the COVID-19 pandemic are also the ones that people depend on daily: namely shipping providers like UPS, FedEx, and the United States Post Office.

Faced with extremely high demand for capacity and increased operating costs across its network, in August, FedEx followed the lead of UPS and the United States Postal Service by announcing new peak season surcharges, effective early November. Company officials said they did this not only to provide their customers with the best possible service during an understandably challenging time, but also to help mitigate risk from what was expected to be historic holiday shipping volumes.

These changes were expected to be in effect until January 17, 2021. However, with Christmas not yet here, the company has already announced they will be extending these surcharges long past their original date of expiration.

FedEx Surcharges and the 2020 Peak Season: What You Need to Know

When the surcharges were originally announced, FedEx indicated the changes would only apply to shipping customers reaching a certain package volume threshold. Specifically:

  • Customers had to ship more than 35,000 packages on average per week between October and November for surcharges to apply later in the year.
  • The amount of the surcharge would depend on how much more they were shipping during October and November than they were between February 3, 2020 and March 1, but residential shipments would see surcharges ranging between $1.00 and $5.00.
  • FedEx announced that even FedEx Smart Post (when FedEx hands packages to the USPS for crucial last-mile delivery) would see an additional increase of $1.00 per package for any items shipped between November 2 and November 29.
  • From November 30 to December 6, Smart Post surcharges would increase to $2.00 per package, after which the surcharge would go back to $1.00 until January 17, 2021.

Or at least, that’s how things were supposed to go.

As of December 22, 2020, FedEx is the first carrier to confirm they will not be ending their surcharges as originally planned – but few expect them to be the last. A large part of this has to do with ongoing market conditions that are making things challenging. Not only is FedEx dealing with limited carrier capacity, but they also have a significantly heightened residential delivery volume right now thanks to 2020 peak season demands. This, coupled with the fact that there are relatively few available carriers for parcel shipping, has created something of a perfect storm in the worst possible way.

According to FedEx’s own website, there are three surcharges that will officially begin on January 18, 2021, and that will continue “until further notice.” These are:

  • Peak – Oversize Charge Surcharge: This applies to U.S. Express Package Services, U.S. Ground Services, and International Ground Service, and comes in at $30.00 per package.
  • The Peak – Additional Handling Surcharge: This impacts all of the same parcel shipping services as outlined above and adds an additional $3.00 charge per package.
  • Peak Surcharge for FedEx Smart Post Package Services: This adds an additional $0.75 cents per package.

The announcement that FedEx Smart Post surcharges will continue is particularly bad news for smaller e-commerce shippers, as they’re the ones that tend to deal with higher volumes of lighter packages. Experts agree that businesses in the cosmetics and apparel industries are likely to feel the immediate impact of this announcement.

Some people speculate that FedEx surcharges are here because the company truly needs them. Others think this is a clear-cut case of “they’re doing it because they can get away with it.” Regardless, it’s safe to say that a multi-carrier shipping solution has never been more critical for reducing parcel transportation spend.  To learn more about multi-carrier shipping technology, watch the Logistyx webinar, Simplifying the Complexity of Multi-Carrier Parcel Management.

COVID-19 Still Wreaking Havoc on Shipping: FedEx Announces APAC Surcharges

COVID-19 continues to wreak havoc on supply chains and shipping around the world, and an e-commerce-focused peak season is only piling on. Following FedEx’s previously announced rate increases and late fees set to take effect in 2021, the shipping giant implemented another surcharge increase for parcel and freight shipments originating in Asia Pacific (APAC).

“Beginning Nov. 30 through Dec. 27, the surcharge amount for FedEx Express international parcel and freight shipments originating in Japan, Korea, Hong Kong and the Philippines will increase as will the surcharge amount for FedEx Express international parcel shipments originating in China. On Dec. 28, these surcharge amounts will return to current levels. Updated amounts can be found here.”

According to FedEx, the reasoning behind the increased surcharge is limited air cargo capacity and incurred incremental costs related to COVID-19.

As Logistyx previously noted: As consumers increasingly turn to omnichannel shopping to safely buy goods during and beyond the pandemic, shipping volume has increased exponentially, putting increased demand on carriers and leading to the rollout of these surcharges and increased rates to offset costs.

New call-to-actionGrowing their carrier network can help any business effectively tackle these challenges by introducing more options and capacity into the parcel delivery mix. Implementing a multi-carrier shipping strategy can help businesses increase stability to quickly react to carrier surcharges and rate increases and effectively control costs. By leveraging a cloud multi-carrier shipping system, businesses can provide a consistent level of service to customers despite the surging demand for carrier capacity by accessing and automatically comparing different carriers’ rates to select the optimal carrier service for each shipment.

Logistyx continues to offer advice and solutions for shippers seeking to adapt to these changes and effectively manage costs; check out the following blog posts:

And white papers:

To learn more about how a multi-carrier shipping system can help your business optimize parcel shipping to help control costs, contact us today.

FedEx Announces 2021 Rate Increases

Retailers can continue to expect rising prices for shipping parcels beyond peak season 2020, as FedEx recently unveiled rate increases and late fees set to take effect in 2021. Starting in January, FedEx will raise rates an average of 4.9% for its Ground, Express, and Home Delivery services, along with charging a 6% late fee to U.S. FedEx Express and FedEx Ground customers who don’t pay invoices within their agreed upon payment terms.

These latest rate increases come on the tail of FedEx and other major carriers levying surcharges in advance of the 2020 holiday shopping season. All together, these recurrent carrier rate increases point to the continued growth of e-commerce, propelled in large part by the COVID-19 pandemic and consumers’ shifting shopping behaviors. According to a consumer insights survey by Radial, for example, 66% of U.S. shoppers anticipate they will increase their online purchases during the 2020 holiday season, with 60% planning to shop less in-store this season due to fear of COVID-19 exposure.

As consumers increasingly turn to omnichannel shopping to safely buy goods during and beyond the pandemic, shipping volume has increased exponentially, putting increased demand on carriers and leading to the rollout of these surcharges and increased rates to offset costs.

As retailers continue to face these rate increases in tandem with higher levels of online orders, they’re challenged with the need to manage these volumes successfully and offer cost-effective ways to meet rapidly evolving customer demands. Growing their carrier network can help any merchant effectively tackle these challenges by introducing more options and capacity into the parcel delivery mix.

New call-to-actionImplementing and optimizing a multi-carrier parcel shipping strategy serves as a key component in cost control for retailers and their ability to quickly react to carrier surcharges and rate increases. By leveraging a cloud multi-carrier shipping system, retailers can provide a consistent level of service to customers despite the surging demand for carrier capacity by accessing and automatically comparing different carriers’ rates to select the optimal carrier service for each shipment.

To learn more about how a multi-carrier shipping system can help your business optimize parcel shipping to help control costs, contact us today.

Logistyx Honored with 2020 FedEx Diamond and Platinum Tier Awards

For the second year in a row, Logistyx received double the honors from FedEx, having just secured both FedEx Compatible Diamond and Platinum Tier Awards for 2020. Selection criteria of the awards include customer compliance; year-over-year growth in volume, revenues and customer installations; and maintaining annual software certifications.

In addition, to better serve the world’s largest shippers, Logistyx recently completed its integration with FedEx FUSE.

To find out more about how Logistyx continues to build upon prior success to improve performance and capabilities for the world’s top shippers, read the full FedEx Compatible Awards press release and news brief from Logistyx Business.