Smarter Shipping, Volume 24: FedEx Surcharges Give First Glimpse into Peak Season 2023
Welcome to Volume 24 of "Smarter Shipping" with Intelligent Audit.
Let's dive right in!
In this edition of "Smarter Shipping," we'll cover the following:
FedEx to hike Express, Ground shipping rates by 5.9% in 2024
FedEx will implement a 5.9% average general rate increase for its Express and Ground shipping services on Jan. 1, 2024, the delivery giant said Tuesday.
Rates will increase by 5.9% on average for FedEx Express’ U.S. domestic, U.S. export and U.S. import services, along with FedEx Ground and FedEx Home Delivery. The company added that Ground Economy shipping rates will also increase.
FedEx Freight shipping rates will jump between 5.9% to 6.9% on average depending on the customer’s transportation rate scale for shipments within the U.S. and between the contiguous U.S. and Canada, the company said.
FedEx Surcharges Give First Glimpse into Peak Season 2023?& the Top 7 Stories to Know for the Week
Despite officially removing the word “peak” from the company vocabulary, FedEx is eager to prepare shippers for the busiest time of the year. One thing remains clear in the company’s Aug. 29 release of annual surcharges: Whether we get a peak season or not in 2023, shippers can expect to pay more for their parcels.?
But it’s not all surcharges and rate hikes. Big changes are taking place across the transportation industry. The persistent drought in the Panama Canal creates disruptions in high-stakes trade lanes, and supply chain leaders are pointing to procurement as a critical player in lowering Scope 3 emissions. Meanwhile, Chinese drone manufacturer DJI is stepping into the delivery game, and parcel leaders are looking to cut flights as volumes remain stubbornly low. From GRI to DJI, we’ve highlighted some key trends making news in the transportation industry.?
FedEx says the additional fees levied on packages shipped between October and January will help bolster services during the busy holiday shipping season. According to a Supply Chain Dive article, some of the surcharges include:
This is the first general rate increase (GRI) announced for this peak season. UPS will soon follow suit, having reached a labor accord with the Teamsters.
Delays at Panama Canal Likely to Increase as Drought Continues
As the latest climate-related disruption takes a toll on the global transportation industry, the drought at the Panama Canal is now causing significant delays to international maritime transportation. Driven by an especially dry spring and exacerbated by the worsening effects of El Nino, the drought has forced officials at the canal to limit the number of vessels to 32 per day, according to the Canal authority.?
In an email to Supply Chain Dive, Worldwide Logistics CEO Joe Monaghan had dire predictions for the state of operations at the canal: “Delays at the Panama Canal are now up to 15 days or more and likely to increase,” Monaghan said. “The full impact of this hasn’t been felt by the importer/exporter community yet since these longer delays have just manifested themselves.”
Drop in Cargo Volumes Signals Continued Difficulties Along West Coast
Following a turbulent period of negotiations between the Pacific Maritime Association and the International Longshoremen and Warehouse Union, prominent West Coast ports continue to struggle with the consequences of diverted volumes. The Port of Los Angeles saw a steep decline of 25.8% in processed TEU. At the Port of Long Beach, the YoY decline was 26.4%. Despite these significant declines due to union negotiations and continued inventory problems within the American retail sector, port leadership remains optimistic in the long term.?
“I am confident we will see our numbers improve as we work with industry partners to rebuild our market share,” Port of Long Beach CEO Mario Cordero told Transport Topics. “Looking ahead in the near term, however, we anticipate a modest ‘peak season’ for shipping as consumers spend a little less this year on back-to-school supplies and gifts through the holiday season.”
IA at Parcel Forum, September 11-13th | Nashville
The Intelligent Audit team are thrilled to be attending Parcel Forum in Septemeber in Nashville at the Gaylord Opryland, September 11-13th!
Say "Hi!" to the IA team at booth #712!
Attend Intelligent Audit's CEO, Hannah Testani's presentation, "The Power of Pristine & Structured Date: How to Make Machine Learning Your Strongest Tool" on September 12th at 12:20 PM CST.
To book a meeting ahead of Parcel Forum, click here.
WEBINAR, September 13th, 12 PM EST: Shattering the Glass: Pioneering Women in Tech & Logistics.
You're invited to an insightful session celebrating women who have broken barriers in traditionally male-dominated sectors of Tech, SaaS, and Logistics.
Introducing an exciting webinar: "Shattering the Glass: Pioneering Women in Tech & Logistics."
Meet the esteemed panel:
领英推荐
Intelligent Audit is a Hot Company, as Stated In Parcel Media 2023
Intelligent Audit is thrilled to be featured again in Parcel Media's Hot Companies.?
White Paper:?Enhance Transportation Spend Management By Leveraging Advanced Analytics
With a transportation spend management program in place, managers can optimize processes and keep the supply chain adaptable as the need for data insight and analytics continues to grow. The parcel and freight transportation market today has reached the point where adaptability, scalability, automation, and optimization are essential for practical and beneficial transportation spend management.
To help shippers achieve their supply chain goals, this white paper will explore the functions of transportation spend optimization and supply chain management automation.
Customer Story:?How Machine Learning Can Become Your Strongest Tool
Learn how Intelligent Audit used machine learning to detect a 500% anomaly in shipping invoices and charges for this Pet Specialty Retailer.
The latest insights from the?Intelligent Audit Resource Hub
The True Cost of Disruption: Navigating Supply Chain Disruptions with Freight Audit Software
What's the common thread from a global pandemic to Hurricane Ian, from a sunken ship laden with luxury cars to the conflict in Ukraine? These are all supply chain disruptions from within the past three years. The worst part? More are likely to come. The numbers don't lie- 80% of businesses reported at least one significant disruption last year, while half dealt with three or more. Consumers feel the pain equally as essential goods' prices soar while supplies dwindle.
Amid these growing supply chain disruptions, freight audit software is becoming a lifeline for businesses. It amplifies control and transparency, ensuring freight invoice accuracy and bolstering cost management. Moreover, beyond its reactive role, the software employs predictive analytics for pre-emptive disruption management. Automating the claims process further accelerates recovery, softening the blow of financial setbacks and cementing the software as a vital tool in contemporary logistics. This article unpacks the details.?
Three Steps to Control Your Parcel Spend
Suppose you're the head of logistics at an e-commerce company, and it’s your quarterly review. Tension fills the boardroom, with ground parcel delivery costs soaring 29.5% since January 2018. Eye-watering numbers flash on the screen, amplifying pressure to keep shipping affordable while pleasing customers. Carrier discounts provide some relief, but they only soften the underlying issue. Eyes turn to you, expecting answers.
Welcome to the complex world of parcel spend management, where effective control is not just about cutting costs but ensuring survival. With shifting logistics trends and carrier rate increases, it's more than a task; it's a strategic approach that can save 5-8% in total costs. This article offers insights into making this achievable.
Carrier Roundup: The Who’s Who of Parcel Transportation
Choosing the right parcel carriers for your business is not a trivial task. With so many options available, how do you know which –one best fits your needs? How do you compare the rates, services, reliability, and customer satisfaction of different carriers? How do you optimize your shipping efficiency and cost without compromising on quality?
This article aims to answer these questions with a comprehensive overview of major carriers and their standout features. You'll learn how to select the right carrier and negotiate contracts effectively and make the most of cutting-edge industry technologies. Whether your focus is on small or large shipments or you're navigating domestic or international routes, this article equips you with valuable insights to confidently make informed decisions.
Happy Labor Day from Intelligent Audit!
In observance of Labor Day, the Intelligent Audit offices will be closed on Monday, September 4th. We hope everyone has a safe and happy holiday.
That's it for this edition of "Smarter Shipping" from Intelligent Audit! Make sure to subscribe to follow each edition.