Volume 50: UPS Releases Full GRI + Winning Carrier Negotiation Strategies
Volume 50 Breakdown:?
Every week we’re catching you up on the top industry news stories from the previous week. Let’s get into it:
UPS’ top clients lower peak season forecasts
In a recent earnings call, UPS revealed that many of their highest-volume clients are lowering their forecasts for peak season volume. A shortened holiday shopping season (with Thanksgiving a week later than most years) is expected to alter shopping behavior by encouraging more in-store purchases.
UPS still expects this peak season to produce higher Q4 revenue than last year.?
“It’ll still be a good peak, but just not as dynamic as people thought at the beginning of the year,” said CEO Carol Tomé.
UPS reports better-than-expected revenue and profit
Rebounding volume and effective cost management resulted in better-than-expected quarterly revenue and profit for UPS.
During Q3, U.S. volumes grew at the highest rate in over three years, resulting in revenue and profit growth for the first time in two years, according to CFO Brian Dykes.
After a prior reduction to expected full-year operating margin, UPS has increased the forecast to 9.6%.
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What is % of Packages DIMed?
DIM Weight is a calculation technique that major parcel carriers (FedEx, UPS, and USPS) use to calculate shipping fees based on the size of the package, rather than its actual weight. % of Packages DIMed refers to the amount of packages where the DIM weight exceeds the actual weight, and will therefore be used for billing.
Why is tracking % of Packages DIMed important?
Tracking % of Packages DIMed is important because the additional cost for dimensional weight vs. actual weight can add up quickly. Once you understand how many packages are being affected, you can make decisions regarding how to right-size your packaging to reduce those costs.
Mastering the Art of Carrier Negotiations (ft. Mark Kolde)
Carrier negotiation can go a long way in setting your parcel operations up for success – especially when it comes to minimizing the impact of the 2025 GRI.
While you can’t hide your shipping profile from your carriers, you can use your data to identify inefficiencies and make changes.
Working with your carrier representative, you can find win-win scenarios that make you both more efficient.?
For more details on expert negotiation strategies, check out this LeaderShipping episode , with Caleb Nelson and Mark Kolde .
More from Sifted: New Homepage Design ??
Introducing… our revamped homepage design !?
With our upcoming SiftedAI launch, it’s a new era for Sifted. We thought it was time for the look and feel of our homepage to reflect the exciting changes on the way.?