In an unprecedented demonstration of Corporate "understanding" and "good will," insiders recently learned both UPS and FedEx were expected to announce they sympathize with the struggles many of their preferred customers are facing due to the ailing US economy and therefore both have decided to "help out" by cancelling next year's rate increase. This new strategy proves beyond a doubt UPS not only loves logistics, but they love their customers too. Not to be outdone, and in the style of Wal-Mart, FedEx is contemplating "rolling back" its rates to 2010 levels. Oh happy day!

Shippers should not discount the importance of this seemingly dreamlike event. If you are touched by this demonstration of thoughtfulness then don't forget to send a card or thank you letter to the heads of these organizations (unlike accessorial charges, their address is quite easy to find at www.ups.com or www.fedex.com).

Sound like rubbish? You bet it is. The absolute fact: your rates are going to skyrocket in January faster than President Obama's blood pressure during a viewing of the nation's unemployment report.

"Goin' Up, Up, Up"
Why do rates increase every year despite economic conditions? There are five reasons:

1 - Because most UPS/FedEx customers won't bother to do anything about it.
2 - Many are intimidated and fear repercussions for even trying.
3 - There is a perception that there are no other choices.
4 - The majority of UPS/FedEx customers don't understand the impact rate increases have on their businesses
5 - Many believe since they have a contract rate increases do not apply 

Here's the good news; you do not have to grin and bear this increase. There are steps you can take to pay a lot less for transportation in 2012 and you should never be afraid to confront your carrier. It would be un-American not to engage competition.

While the world is bracing for a double-dip recession, millions are concerned about falling home prices, high unemployment, our nations debt and political gridlock. I can't help solve those problems but I can tell you how to lower your transportation costs in 2012 by 30% or more.

Here are five contacts you should make immediately to offset the impending doom of higher shipping rates:

1 - Equaship www.equaship.com This bright new star in the shipping business helps to level the playing field for smaller shippers. Apple computer and your local mortgage broker pay the same rates - all of which are publicized online. No secret deals for anyone and no accessorial charges - ever.
2 - DHL - www.dhl.com This is the largest shipping company in the world for a reason. If DHL were a country, they would have the 6th largest economy. Want to really drive down international shipping costs by 30% or more and speak with a company whose only focus is on international shipping? Call DHL and speak with a trained Certified International Specialist (CIS).
3 - Vanguard Global www.vanguardglobal.com Shipping to Canada? This award winning service will consolidate your shipments, expose delivered costs up front (and reduce them) speed delivery to Canadian recipients (virtually everything gets delivered in two days) and lower your costs by 30% or more even if you are getting a 60% discount from UPS/FedEx.
4 - Advantaship - www.advantaship.com The first ever shippers savings club. For a small monthly fee get access to huge discounts (previously reserved for large shippers) for a multitude of services with no volume commitments. Join a growing number of shippers who are taking control of shipping expenses.
5 - Get a multi-carrier TMS solution installed to help select the best method of shipping from among all of these services (including UPS, FedEx and USPS). As I reported at Parcel Forum last month, (email me @jim.lerose@agile-network.com if you want a copy) this technology alone will save you another 30% or more! Google the term "Transportation Management Software" and find a provider today.

I hope this information helps you Ship Better and Save Money.

Jim LeRose is Principal of Agile NYC Metro and President of Advantaship.com. Jim has been a transportation industry consultant for over 25 years. His clients have saved millions on transportation costs. Agile has helped companies such as JP Morgan, Audiovox, Intuitive Surgical, Panasonic Electric, Petco and over 1,000 others. Jim welcomes your comments and can be reached at jim.lerose@agile-network.com or @888.214.1763





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