Volume 7: The Parcel Playbook is BACK
After a break, The Parcel Playbook is back to deliver parcel industry news, resources and tips to your inbox each week.?
Edition 7 Breakdown:?
Every Monday we’re catching you up on the top 3 industry news stories from the previous week. Let’s get into it:
#1 Black Friday/Cyber Week Online Sales Hit Record Highs
Cyber Week - the five days following Thanksgiving - saw a 7.8% increase in online sales from last year. Ecommerce sales on Cyber Monday alone totaled $12.4 billion in the U.S., a 9.6% YoY increase.
The increase represents “record online spending” according to Vivek Pandya, lead analyst of Adobe Digital Insights.
#2 UPS and FedEx Win Black Friday Volume from Regional Carriers
UPS and FedEx had a larger combined share of parcel volumes during the week of Black Friday than last year, according to data from multi-carrier shipping platform Shipium . 49% of volume sent through Shipium’s platform between 11/20 and 11/26 went to the national carriers, and the rest . Last year, they handled only 31% of the platform’s volume.
Shipium CEO Jason Murray acknowledged that their data doesn’t mirror U.S. parcel volumes, as regional carriers as a whole hold a much smaller share of the market than the 51%. He feels their data still shows FedEx and UPS’ aggressive pricing is paying off.
ProShip , a similar company, saw an increase in volume for the national carriers as well, although at a much smaller rate (2%).
#3 OnTrac Announces 6.2% GRI
OnTrac has shared their 2024 General Rate Increase, which will see an average increase of 6.2%, slightly higher than FedEx and UPS’ 5.9% average increases.
Much like FedEx and UPS, long-distance shipments will see higher increases than those of shorter distances.?
Shipments traveling less than 600 miles will see a 5.9% average increase. Those over 600 miles will increase at an average rate of 6.4%.
The new rates go into effect January 1.
领英推荐
What is Effective GRI %?
Each year the major carriers release a General Rate Increase (GRI) percentage, which is the average l percent increase in base rates for the upcoming year. FedEx & UPS have both released their GRIs for 2024 , and to no one’s surprise they're identical at 5.9%.?
But, it is important to remember that the “G” in “GRI” stands for general - it’s just an average across the board. Your effective GRI % is how the announced 2023 GRI translates to your business. It takes into account your shipping profile - services, zones, and weight distributions.
Why is tracking your Effective GRI % important?
If you’re taking 5.9% and running with it for budgeting, it won’t be accurate. You need to dive into the data to see how the rate hikes will affect your shipping profile.
Use your data to identify inefficiencies and make changes.
What’s Next for Shippers: 2024 FedEx & UPS GRI Analysis
Speaking of the 2024 GRI, here are some key takeaways from our analysis:
As expected, the carriers are driving home their message that they only want to ship the most profitable packages: Small, lightweight and delivered to urban areas.?
Read our full article: What’s Next for Shippers: 2024 FedEx & UPS GRI Analysis .
More From Sifted
Sifted Live Group Demo: Carrier Diversification Tips + Tools
When it comes to UPS & FedEx, rates just keep going up. That’s probably not going to change, but what can change is your shipping strategy. Carrier diversification is a tactic you should be ready to implement in 2024.
Join our live demo on Dec 13 @ 11AM CDT to learn how our Logistics Intelligence tools can help you see where diversification would be beneficial.?
Secure your spot now: https://bit.ly/3ujrIzN
LeaderShipping
LeaderShipping is a podcast delivering innovations and ideas from the parcel, transportation, and logistics industry. Hosted by Caleb Nelson –hear from industry experts and trailblazers on what it means to be a LeaderShipper. Subscribe wherever you get your podcasts:
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