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2022 Carrier Rate Increases Highlight Need for Multi-Carrier Parcel Shipping Strategy

It’s that time of year again. As detailed on Logistyx’s Carrier Updates and Resources page, three major carriers announced rate increases for the coming year:

DHL: Starting January 1, 2022, DHL Express plans to raise rates for U.S. shippers by an average of 5.9%. The increase will apply to U.S. account holders shipping to or from the 220 countries and territories DHL Express serves. DHL increased rates by an average of 4.9% for 2021, and by 5.9% on average for 2020.

FedEx: Effective January 3, 2022, FedEx Express shipping rates will increase approximately 5.95% on average across U.S. domestic, U.S. export, and U.S. import services. FedEx Ground services are also expected to increase. Specifically, rates will increase 5.9% across those using FXF PZONE and FXF EZONE. Those who use FXF 1000 and 501 will see shipping rates increase even more, 7.9% on average.

UPS: Effective December 26, 2021, published rates for UPS Ground, UPS Air, and International services will increase an average net 5.9%. UPS says the rate increase “helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.”

Following nearly two years of shipping and supply chain chaos fraught with capacity crunches, shipping quotas, service delays, and a slew of surcharges, it seems logical for carriers to increase rates, but yearly rate increases were the norm even before the pandemic. Carriers often acquire more planes, trucks, and other delivery transports ahead of peak season when volume increases require more capacity and then pass the costs of those acquisitions on to consumers with rate increases the following year.

Webinar - Take Control of Your Parcel Shipping Network

Regardless of the reasons, carrier rate increases are here to stay, increasing the importance of utilizing a multi-carrier parcel shipping strategy to keep costs down and customers happy. A multi-carrier shipping strategy leverages many carriers, including global, regional, and last-mile carriers, and enables service selection that makes the most sense for each shipment. By taking this approach, shippers can save money with regional carriers; save time with last-mile carriers; and ensure on-time delivery when strikes, overcapacity, and peak seasons occur.

Manually managing a multi-carrier parcel shipping strategy can become quite cumbersome, especially as the number of shipments, carriers, and increase. Luckily, multi-carrier shipping technology helps retailers, manufacturers, and logistics providers ship millions of parcels worldwide at the lowest possible cost by automatically selecting the right carriers and services for each shipment based on origin-destination, delivery timeframe, and any applicable business rules. Of course, there are numerous other benefits of multi-carrier shipping technology, especially Logistyx’s cloud-based solution, which streamlines the journey from label to delivery.

Watch our webinar, Simplifying the Complexity of Multi-Carrier Parcel Management, to see how a multi-carrier parcel shipping solution can help you reduce shipping costs even in the face of rising carrier rates.