General Rate Increase (GRI)
Qasim Noor Ellahi
Unit Head Wahousing & Logistics Planning & Excellence at Interloop Limited
Another year, another increase. There are numerous fees, surcharges and other rates that may not make the headlines, but do increase. A smaller increase is still an increase that will drive up the cost of doing business.
In order to negotiate properly, you need to understand what is the true financial impact of these increases and improve your bottom line, without impacting service
Among the traditional rate increases, there are often a few additional charges and changes to the carrier pricing
Minimum Charges: These charges are another area where carriers steadily raise the price year over year to increase your cost.
Surcharges: Carriers often raise surcharges at a higher rate than the announced percentage and they have the potential to impact your shipping costs drastically
Additional handling surcharge: odd dimension, overweight, Packaging, Large & Oversize Packages
Corrections: Carriers also adds this surcharge when the shipper provides an incorrect or incomplete address
Peak Season Surcharges: This year that charge has more than doubled to per package from last year
Volume Surcharges: These fees apply to qualifying customers who shipped more than average packages during any week
Fuel Surcharges: These are also adjusted weekly and remain up-to-date on the current fuel surcharges
Remote Delivery: ?Is Even More Expensive:
These annual increases and rate changes will impact your business - and countering them requires immediate action.