The shipping carrier rate increases continue to roll in. DHL Express, the world’s leading international express services provider, announced a 4.9% general average price increase for U.S. account holders, effective January 1, 2018. This increase mirrors the other major carriers, UPS and FedEx, in their 2018 average rate hikes.
Not all carrier average rate increases are created equal
Not all carrier average rate increases are created equal. The key is to dissect the specific, granular surcharges that are included in the increases. This is where carriers diverge in their rate increases and calculations become convoluted. For example, UPS implemented a peak 27-cent surcharge per package from Nov. 19 to Dec. 2 and between Dec. 17 and Dec. 23 on its ground service. FedEx, on the other hand, held off on holiday peak surcharges but is charging for any oversized packages.
According to DHL’s announcement, “DHL Express adjusts its prices annually, taking into account inflation, currency dynamics and other rising costs, such as expenses related to compliance with enhanced security regulations, in each of the more than 220 countries and territories that it serves.”
What to watch for in 2018
Of course, every DHL customer will be impacted separately due to the higher surcharges, additional fees, shipping processes and individual carrier agreements. This means two customers with similar shipping profiles can have dramatically different contracts with the same carrier.
A good point to remember is the resulting charges often exceed the publicized 4.9% rate increase on shipping. Let’s take the new Oversize Piece surcharge for example. The change from $72.50 in 2017 to $89 in 2018 is a 22.75% price increase. This is over four times the average rate increase advertised.
Here are a few extra changes that small parcel shippers should be aware of while planning for 2018.
- Address Correction and Change of Billing will increase from $14 per shipment to $15 per shipment
- Residential Delivery will increase from $3.85 per shipment to $4.15 per shipment
- Over Weight Piece (OWP) will now be called Oversize Piece (OSP) and will increase from $72.50 per shipment to $89 per shipment
- Non-Stackable Pallet will increase from $135 per shipment to $195 per shipment
Learn more: 2018 DHL rate guide
As the new year approaches with all carriers increasing their rates, auditing your invoices is becoming a necessity. It’s imperative your shipping invoices be audited. If this process is skipped, money will be lost and benefits missed. Checking your invoices line by line to ensure you’re not spending a dime more on shipping costs than you’re supposed to will return dollars back to your business. Give yourself the gift of knowing the maximum amount of money is being saved on shipping without having to spend time tediously auditing shipments yourself. Our team of experts can optimize your complex carrier contracts and audit every shipment automatically.
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