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This week in parcel, TransImpact tackles FedEx’s GRI, manufacturers turn to demand planning software, and FedEx defends its Demand Surcharges.  

Why FedEx’s lower 2024 GRI is still high 

At 5.9%, FedEx’s 2024 general rate increase is softer than the one implemented in 2023. But the 5.9% increase shouldn’t lull shippers into complacency.  

The new GRI for 2024 is still the second-largest increase on record, tied with the 2022 increase. This year’s rate changes will greatly increase shipping costs for unprepared businesses. 

The GRI is just an average. Shippers need to know what’s in the details to prepare for next year. Thankfully, TransImpact has you covered.  

In our new e-book, we break down the FedEx 2024 GRI to highlight the increases and service updates that will impact your shipping. 

Get your free report here 

Manufacturers look to data for answers during peak season 

Manufacturers have not seen a surge during peak season. This has left the industry searching for answers. The smart ones are turning to their data.  

By using demand planning software, manufacturers can extract the most out of their data. Instead of relying on spreadsheets, they have real-time visibility into what’s happening in their warehouses. They can receive insights about when to consolidate their carriers, which orders to fulfill immediately, and how to maximize team collaboration. 

Turning to demand planning software also assists in creating a Plan B, whether it’s overstock or a natural disaster. 

Our take: It is time for companies to look up from spreadsheets and into their data with demand planning software to ensure a successful 2024. If you don’t know where to start, schedule a demo with TransImpact to see what Supply Chain Planning software can do for your business.  

Read more here.  

The U.S. Postal Service’s lack of peak season surcharges doesn’t worry FedEx 

Although the U.S. Postal Service and Amazon Shipping will forgo demand surcharges, FedEx doesn’t believe its Demand Surcharges will stand in the way this peak season. 

In the carrier’s eyes, since most shippers don’t have the volume to qualify for peak season surcharges, service will be the deciding factor. FedEx believes its service will sway shippers into sticking with the company. The shippers who qualify for peak season surcharges will often negotiate the fees with the carriers. 

FedEx says the Demand Surcharges allow the company to boost its capacity to meet the demand for peak season. 

Our take: There are many other surcharges and fees on the books right now that ALL shippers are paying, as well as the recently announced 2024 GRIs that will increase their costs by a near-record amount. If you have the volume to qualify for Demand Surcharges but haven’t negotiated, now is the time to use our Parcel Contract Negotiation team to optimize your rates.  

Read more here 

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