UPS Hundredweight Service (CWT) offers a discounted rate to shippers who send multiple packages to the same destination on the same day. It’s a great option for non-palletized, multiple-package shipments that weigh between 100 and 500 pounds.
Am I eligible for UPS Hundredweight Service?
You might be asking yourself, “Can I use UPS Hundredweight Service?” Currently, it’s only available to customers who receive Automatic Daily Pickup and are using any of the following services.
- UPS Next Day Air®
- UPS Next Day Air Saver®
- UPS 2nd Day Air A.M.®
- UPS 2nd Day Air®
- UPS Ground®
- UPS 3 Day Select®
Shippers must enable the service with UPS before processing Hundredweight shipments. The minimum total weight requirements for a UPS Hundredweight Air is 100 pounds and for UPS Hundredweight Ground (and 3 Day Select) it’s 200 pounds. It’s necessary to talk with your UPS rep to see if you qualify.
What are the perks of UPS Hundredweight Service?
CWT has fewer requirements than LTL and offers better cost savings when using the service. Computing LTL costs and comparing to CWT costs will help you determine the potential savings. UPS has more delivery trucks in more locations. This advantage helps them deliver at a lower cost than most LTL carriers. A few other perks to consider when comparing between CWT and LTL are listed below.
- No pallet necessary. This eliminates pallet charges and reduces the weight of a shipment by approximately 30 pounds.
- Lower fuel cost. Fuel surcharges continue to rise, but with UPS’ Hundredweight Service the shipment qualifies for a small package fuel surcharge instead of an LTL surcharge. On June 18, 2018, the fuel surcharge for class rated shipments was 24.9%. In comparison, a ground surcharge was at 7.50% for the same time period.
- Less accessorial fees. We all know accessorial fees are pesky and add up quickly. There’s no extra fee for inside delivery when using CWT.
- Scheduling pickups are not required. Automatic daily pickups mean no scheduling is necessary.
- No loading dock required at pick up.
Can I use UPS Hundredweight Service on international shipments?
Currently, UPS Hundredweight Service can only be applied to domestic shipments originating within all 50 states. The final destination of CWT does include Puerto Rico.
How do I calculate Hundredweight rates?
UPS provides a CWT rate tool to give you an idea of what you would pay based on origin, destination, weight, number of packages, type of UPS service and commodity tier. The tiers are based on the density of the items in the items inside the package.
What if I ship with FedEx?
The major carriers often mirror each other and provide identical services. If you ship primarily through the FedEx network, there’s a service similar to UPS Hundredweight that’s available to you too. FedEx Ground Multiweight can be applied when you combine multiple packages for the same destination in one shipment. Your multiple-piece shipment weight must be a minimum of 200 pounds. Usually, the average package weight is around 15 to 25 pounds.
This service uses the FedEx Ground network which means door-to-door delivery in 1-5 business days within all 50 states. Of course, Hawaii and Alaska will require a bit more travel time and a delivery window of 3-7 business days exists to reach those locations. FedEx Gound Multiweight only operates Monday through Friday and rates are available by contract only. In order to receive multiweight rates, you will need to talk to a FedEx account representative first.
Talk with a logistics expert today
If you are still unsure if you qualify for UPS Hundredweight service, or simply want a second set of eyes on your carrier contract, give Share a Refund a call today. Industry experts are prepared to discuss your shipping profile and possible places to see better rates. Better rates mean bigger savings back into your business.
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