Parcel, Freight, International and 3PL Contract Rate Negotiations
Renegotiate Your Carrier & 3PL Contract Rates
Most carriers and 3PL’s implement annual rate increases. ICC ensures these costs don’t erode your profits. Through our Carrier and 3PL Rate Negotiation services, we protect your bottom line by securing the best rates and terms for your shipping needs.
At ICC Logistics, we leverage decades of expertise to negotiate favorable contracts with Freight Carriers and 3PL’s. We meticulously analyze your shipping data to uncover savings and optimize your carrier and 3PL contracts for maximum efficiency and profitability.
Put ICC in your corner, and we’ll help you negotiate the most favorable carrier rates and service agreements for your company.
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Get A Free Benchmark Analysis
Contact ICC today and we’ll show you how we can boost your bottom line with our parcel audit services.
The Complexity of Contract Negotiations
Contract negotiations have become increasingly complex over the years. Here are some key challenges:
Lack of Insight and Data
Most companies lack the necessary insight and data to maximize their carrier and 3PL rate negotiations.
Carrier-Specific Processes
UPS and FedEx: Their contract negotiation processes are distinct from those of other carriers, requiring specialized knowledge to navigate effectively.
ICC’s Experience with Contract Negotiations
Negotiating carrier contracts requires knowledge, accurate data, and expertise. Without these, you’re likely overpaying. ICC equips you with the tools and Big Data needed to negotiate carrier and 3PL contracts effectively.
Since 1975, our freight rate negotiation services have saved clients tens of millions of dollars.
Put ICC in your corner. We’ll help you secure the best carrier rates and 3PL service agreements for your company.
How Do We Negotiate Rates with Freight Carriers and 3PL’s
With Successful Carrier Negotiations, Knowledge Is Power
Do you know when you last negotiated your carrier contracts? Chances are, it’s been a number of years. And it’s likely you never analyzed the new contract against the previous one to validate the savings the carrier promised you. Before you renegotiate your agreements, you need to know:
How general rate increases have impacted your costs
The components of your existing rates
If your systems can support new carriers
What percentage of your total fees are acessorials, including fuel
How your discounts stack up against your competitors’
What your contract says regarding rates
Whether you’re ready to change carriers or add new ones to your transportation program
A Snapshot of the ICC Carrier and 3PL Rate Negotiation Process
Don’t Leave Money on The Table!
Optimize your rates and negotiate favorable contract terms with freight carriers and 3PL’s. Here’s how we make it easy:
Initial Setup
In-Depth Analysis
Detailed Report
Empowered Negotiation
Knowledge is Power!
ICC equips you with the insights needed to take control of your freight carrier and 3PL contracts.
We Sweat the Small Stuff
Before starting a freight carrier and 3PL contract negotiation, we analyze carrier and 3PL pricing models and scrutinize your transportation and logistics data, including:
Shipping volumes
Average revenue per shipment
Average weight and cost per shipment
Mileage
Product shipping characteristics
Maximize Your Savings
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Current Carriers and 3PL’s
We help you get the best discounted shipping rates.
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New Carriers and 3PL’s
If you’re ready for a change, we’ll secure pricing and service proposals from multiple carriers and 3PL’s for you to consider.
ICC’s Freight Carrier and 3PL Negotiations achieve substantial and ongoing cost reductions in:
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Customized pricing schedules and contracts
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Customized accessorial charges
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Customized carrier surcharges
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Verification of proper freight classification ratings
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Comprehensive analytics and costing models by Lane ID
Ongoing Support and Monitoring
In addition to our initial data analysis and negotiation support with freight carriers and 3PL’s, we provide ongoing monitoring of your invoices to ensure you are always charged the correct rates.
Don't Leave Money on the Table!
Contact ICC today to learn how our Carrier Rate Negotiations can boost your bottom line.
Call us at 516-822-1183 or contact us online.
What Is Carrier Contract Negotiation?
Carrier contracts can be complex and confusing. Small changes in wording or amendments can significantly impact your shipping expenses. Early termination penalties and failure to meet minimum commitments can also add unexpected costs.
Simplifying the Process
ICC simplifies the contract negotiation process with our state-of-the-art, proprietary model. We provide the information needed to negotiate favorable agreements with your parcel and freight carriers.
Tailored Contract Solutions
Not all carrier contracts are created equal. We help you determine the best agreement for your company:
- Revenue-based/tiered discount agreements
- Custom net rate agreements
- Quarterly or annual rebate agreements
- Custom pricing agreements
Industry Expertise and Data Analysis
Our deep industry experience and vast database of historical carrier invoice data allow us to identify available discounts and incentives based on your unique shipping characteristics. We benchmark your contract against similar shippers to ensure you get the best deal.
FedEx and UPS Contract Negotiation Tips
Know What You’re Paying
The first step in negotiating contracts is understanding your current costs. ICC tracks and validates your pricing, service, and performance, then shares the results with you. Many of our customers are surprised to learn where they’re over-spending and missing out on discounts.
Base Discounts
Most FedEx and UPS contracts include base discounts based on zone and weight.
Extra Discount Tiers
Additional discounts are available based on the revenue generated by the shipper.
Rebates
FedEx and UPS occasionally offer quarterly or annual rebates, also based on earned revenue.
Accessorial Discounts
Small Parcel agreements often have a separate addendum listing accessorial discounts.
Understanding these elements helps you negotiate better terms and optimize your shipping costs.
Common Factors Affecting Domestic Freight and Parcel Shipping Rates Include:
Annual volume
Origin-destination pairs
Packaging dimensions, weight and type
Packaging optimization
General rate increases
Fluctuations in shipping activity and characteristics
Although you can’t control what UPS, FedEx and other carriers do, you can set yourself up for success.
Proven Keys for Success
Work with Experts
Partner with a company that understands carriers’ motivations and negotiation tactics.
Hire a Specialist
Employ an expert who knows how and where to save you money without sacrificing service.
Optimize Package Dimensions and Weights
Understand your package characteristics and demonstrate how they minimize carriers’ costs.
Review Rate Increases
Thoroughly review FedEx and UPS published general rate increases and service guide changes.
Timely Payments:
Demonstrate that you pay on time.
Stay Informed
Carriers often make changes throughout the year without notifying you. ICC keeps you informed of any updates to carrier policies and rates, ensuring you’re never surprised by an invoice.
Frequently Asked Questions
What is the difference between parcel and freight?
Shipment size and service. We advise our clients the best way to ship their goods – parcel or freight – to ensure the best service at the lowest rate for the best customer experience. Once shipment weights get above 200 Lbs., it is important to compare options with LTL and Parcel carriers.
What rates can you negotiate with FedEx and UPS?
There’s very little we CAN’T negotiate. Here are the most commonly negotiated rates:
- UPS Ground Commercial Residential Discounts, FedEx Ground Commercial and Home Delivery Discounts
- UPS Next Day Air, FedEx Priority Overnight Discounts
- UPS Next Day Air Saver, and FedEx Standard Overnight Service
- UPS 2nd Day Air and FedEx Economy Discounts
- UPS International Worldwide Express, Express Saver, and Standard Service
- FedEx International Priority Express, International Express, Economy, and Ground Service
- UPS and FedEx Delivery Area Surcharge/ Extended Area Surcharges
- UPS and FedEx Residential Surcharges
- Minimum Charges
- UPS and FedEx Fuel Surcharges
- UPS and FedEx Dimensional Weight Factors
What is “Ugly Freight” and how does it differ from traditional Domestic Freight?
Ugly Freight describes goods that are difficult to ship via traditional courier or carrier freight services in van equipment. ICC specializes in Ugly Freight that is oversized and requires specialized equipment such as flatbeds, step decks and removable gooseneck trailers. Ugly Freight may also require permits and road closure documents prior to shipping. ICC can help shippers fully optimize and modernize this unique and competitive area of freight logistics.
What are the most commonly negotiated rates, discounts and surcharges?
You can negotiate rates for next-day air, second-day air, delivery area surcharges, accessorial discounts, volume-based discounts, dimensional weight pricing, residential delivery surcharges, and large package surcharges.
How do you negotiate a lower freight rate with FedEx, UPS and other carriers?
It’s simple. After 50 years working with shippers and carriers, we have developed a deep understanding of parcel and freight carrier’s pricing models, service offerings and contract anomalies. Coupled with this knowledge is our vast database which helps us to analyze and understand the significant opportunities shippers have to achieve optimized services, rates and contract terms with UPS, FedEx and other carriers. Our team also includes industry insiders with firsthand knowledge of how UPS and FedEx negotiate. We pass this knowledge on to our clients to help them achieve best-in-class rates and service offerings for their business.
Will the contract negotiation process impact my carrier relationship?
It will, in a positive way! Strong carrier-shipper relationships are key to a thriving supply chain. As logistics consultants, we are keenly aware of the power of those relationships and look to strengthen them with mutually beneficial contract terms and agreements.
A partnership where everyone wins is much better than a one-sided one. It is impossible for shippers to understand contracts and opportunities available to them until they take a deep dive into their current contracts and see how they stack up. Once shippers have that knowledge, they are on a level playing field with their carriers. That’s how strong partnerships with carriers and shippers are created.
How much will I save?
Savings vary based on a number of factors. First, savings can’t be the only goal but should be balanced with service offerings and other contractual values. So, there are “hard” savings in the form of percentages and “soft” savings in the form of service offerings and other valuable incentives from the carrier. Our customers on average save up to 30% in a typical contract renegotiation. Once you begin working with ICC, in two weeks you’ll know where you stand. Worst case scenario? We discover you already have great rates and contract terms (it’s happened 2x in 45+ years). Best case? We give you the knowledge you need to negotiate best-in-class rates that help your company save significant dollars on your current spend over several years. There’s nothing to lose.
What is considered as a good parcel shipping rate?
Although it depends on the parameters, which can be complicated, ICC believes that the best parcel shipping rate is one that provides the best service, the best price, and the best customer outcome.