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New $24 Bulk Parcel Fee Has Shippers Splitting Up Deliveries, Mode Shopping

With a new year comes new rate increases, as the Wall Street Journal reported with FedEx and UPS recently imposing $24 bulk parcel fees on packages weighing more than 50 pounds. Prior to this latest battle in the war on bulk parcels, packages weighing more than 70 pounds prompted additional handling surcharges. The new, lower weight limit could affect “millions of packages,” requiring shippers to adjust their shipping methods to work around it, including breaking up shipments or visiting delivery sites more often to manage the fees.

Logistyx’s TMS for parcel shipping can help shippers counter these latest rate increases by uncovering more efficient modes of parcel transport, automating processes to effectively unlock those opportunities and even executing parcel shipments in previously untapped channels – like less-than-truck load (LTL).

“Many of our shippers are mode shopping and turning to LTL for the first time in response to these bulk parcel fees,” said Ken Fleming, Logistyx President and Chief Sales Officer.

Comprehensive Mode Shopping Capabilities

Just as rate shopping helps shippers determine the ideal carrier service or combination of carriers in real time, mode shopping allows them to uncover the ideal shipping method to achieve the best value for each shipment and parcel. Shippers expecting to be impacted by these new fees are opening their eyes to modes they hadn’t yet considered, and Logistyx makes it easy.

Logistyx TME enables customers to consolidate parcel shipments to make smarter parcel shipping decisions and reduce spend – an essential advantage when it comes to avoiding rate increases. The software includes a variable library of carrier-compliant routing tools for parcel, LTL, truckload (TL) and regional parcel carriers, allowing customers to shop for the optimal mode of parcel transportation and consider options beyond the largest carriers. Mode planning using TME helps shippers instantly compare national and regional carriers to determine whether 50-70 pound packages should be moved as parcel, LTL or TL shipments, ensuring the lowest-cost shipping rules are followed whenever appropriate.

Automating Shipping Scenarios

New call-to-actionLogistyx even automates the process. TME can be programmed by embedding company-specific business rules and customer preferences to automatically mode shop and unlock sophisticated least-cost routing scenarios for parcel and LTL shipments. The business intelligence tool provides an auditing function to help customers analyze fees and determine how to avoid costly rates for bulk parcels, including reducing the weight threshold for additional handling surcharges for those routinely shipping heavier products. The ability to automate processes to easily measure actual transportation costs and run reports that identify opportunities to deploy different multi-carrier parcel delivery strategies can yield greater returns.

Executing LTL

LTL shipping is ideal when shipments don’t require a full trailer and offers a cost-effective mode of transport when parcels are too bulky to ship cost-effectively with more typical parcel carriers. Logistyx offers a scalable architecture to exchange information in real-time to create the most efficient LTL fulfillment processes possible. By automatically capturing shared shipping data through integrations with leading business systems, Logistyx TME ensures only applicable, low-cost services are considered to optimize LTL execution.

A TMS for parcel shipping provides an agile solution to help shippers skillfully manage the changing demands of carriers. To discover how Logistyx can help with managing the negative impacts of these bulk package fees or other profit-draining carrier fees, learn more about our multi-carrier shipping technology.