Market Swings Out of Shippers’ Control
A look at the Market Demand Index (MDI) reveals more bad news for shippers. The Index has fluctuated between a 10.3 and 16.2 on the scale, this past year, putting the market squarely in the hands of the carriers. We don’t foresee the MDI scales tipping in the favor of shippers any time soon so strong relationships with carriers and brokers are more important than ever. Read more →
LTL – A Great Service Option, But Buyer Beware – Stop Buying Transportation. Procure it!
We’ve all been there: trying to get out a shipment that’s too large for your parcel carrier, yet too small to take up an entire truck. If you’re in this situation, shipping the load via Less-than-Truckload (LTL) may be the best solution. The carriers servicing this space, such as Estes, Old Dominion, and Vitran have made impressive investments in their infrastructure, including strategically placed terminals, driver communication equipment, and even customer facing technology to facilitate manifesting and tracking shipments. Fortunately, for shippers like you, it is a relatively competitive market between the various regional and national carriers, with 80% of US volume being managed by the top 20 carriers. That said, approaching LTL without a well planned procurement strategy and the necessary resources can cost you dearly. Read more →
UPS, FedEx Rate Changes — What the Numbers Reveal
FedEx and UPS have unveiled next year’s rate changes both of which will go into effect on January 2, 2012. With an average increase of 5.9% across U.S., U.S. export and U.S. import services, the FedEx hike is greater than the last two years (3.9% in 2011 and 4.9% in 2010). UPS has also raised prices, in their case, by an average of 6.5%. While both FedEx and UPS claim that decreases in fuel surcharges will help offset the increases, our team of BirdDog Logistics Experts aren’t so sure. Despite the PR around this decrease, the end result remains a painful increase in shipping charges.
Which Services Are Being Raised?
While FedEx and UPS are keen to promote their rate increases as 5.9% and 6.5% respectively, those, of course, are just an average. A closer look at the numbers reveals that, for both carriers, individual services have been selected to take a bigger hit compared to the others. To begin, let’s look at what’s taking the hardest hits and what is being spared from the hefty hikes. Read more →