Use of Multiple Carriers-Small businesses shippers should have accounts with multiple carriers in order to take advantage of the different service types. Sometimes businesses are under the impression that they must use only one shipping account or that they have to close an account with one shipper after opening up an account with another shipper. It is in the best interest of the business to have account with multiple carriers in order to take advantage of full range of services outlined in the table below.
Standout Services-Two good examples of stand out services are the Hundredweight service offered by UPS and ShipReady offered by DHL. UPS many years ago had a specialty in transporting heavy weight ground packages. Although they have gained market share in the overnight business the Hundredweight category speaks to this specialty. Anyone planning on shipping a one-off heavyweight item would be better served by using a company that has a specialty in that service. DHL ShipReady is a shipping product by DHL that is often under recognized and therefore under utilized. For a fixed price, you can send as much weight overnight as can be fit into their envelope with no pickup charge or residential charge. These ShipReady envelopes come in several sizes.
Does it absolutely have to be there by 8:30? One rule that should be included in any company shipping policy is for the shipper to check with the package recipient regarding urgency. For example, Fedex First Overnight and UPS Next Early AM will arrive the next day before 8:30. This 8:30 service is not offered by DHL. However, as a shipper you should be perfectly clear on whether the recipient is expecting and will open that package at 8:30AM. Sending a package, DHL Next Day 10:30, FEDEX Priority Overnight or UPS Next Day Air, all of which will arrive by 10:30AM might be all that the recipient needs. Who knows...maybe your recipient will not even be at the office until 3:00PM and then DHL Next Day 3:00PM, FEDEX Standard Overnight or UPS Next Day Air Saver would provide the needed quality of service at significantly reduced cost. The same is true for 2nd day service. UPS provides a second day service that arrives by 10:30. However all three carriers provide a second day service that will arrive by end of day. You never know about urgency if you do not ask and the savings can be significant over time.
One final point that we want to make is on the matter of airway bill preparation. Many office workers do not fill out the waybill completely especially when sending overnight letters. If you leave any portion of the waybill empty the carrier will default to the most expensive option. Make sure that anyone filling out waybills knows how to fill them out correctly. For example, if you fail to indicate that the package may be left without a signature (if this is the case) then a signature will be acquired for an extra fee.
Wireless Phone Service Comparison
Freight shipping involves the movement of large packaging such as pallets or even containers and is usually used by importer/exporters. The table below lists all of the different freight services available from DHL, Fedex and UPS. They are grouped into three sections: Air, Ocean and Ground/Rail. These services mainly address the unique needs of these business shippers such as expediency, security, temperature sensitivity, door to door delivery, consolidation etc.
Two words about freight forwarders
Many international importer and exporters choose to elect a freight forwarder to handle all the details for shipping their commodities internationally. One thing that they should be aware of is that freight forwarders outsource their services and many times use DHL, Fedex or UPS freight services as well for a portion of the shipping-especially if shipping air freight. In the case of air freight you may want to consider using these carriers directly. The nice thing about using these main carriers directly for your freight needs is that a price can be given up front that should not deviate much from the final price. Often freight forwarders cannot tell give a customer a final price because honestly they don't know what it will be.
Another notable difference between using a freight forwarder and using one of these carriers is that the delivery can be made door to door. Freight forwarders often only deliver to airports. As an importer you always want to maintain a good relationship with your trading company. If they are used to working with freight forwarders it may be to your advantage to continue to use a freight forwarder. However you can instruct your freight forwarder to use one of these shipping carriers and your shipping account to make the arrangements. Having previously arranged shipments through your freight forwarders using their means it would be an easy matter to do a cost comparison of the shipping using one of these carriers. If you decide that there are sufficient benefits to using one of these carriers, you can then try to negotiate greater volume discounts from your shipping carrier by including your import/export shipments in addition to your present shipping volume. Finally and equally important you this would give you better control on the actual final cost of the shipment plus option of door to door delivery if desired.
A changing market outlook...
Importer/Exporters usually are content to allow for a certain percentage of their profit margin to go to shipping and are happy to just pay what is needed. However the United States economy is slowing which means that orders will not be as large and profit margins will suffer. It is usually times such as these when "necessary" costs are more closely scrutinized.
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