As you may have noticed, your shipping rates change from time to time. In this article, we will explain how and why shipping prices fluctuate, so you know what to expect when it comes to your freight costs.
Summary
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Carriers adjust their rates annually, usually between 2-8%
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During peak season, a temporary surcharge of 5-10% may be added
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The fuel surcharge varies throughout the year depending on external factors
Carriers’ Standard Annual Rate Adjustments
Every year, carriers implement a general price adjustment, which typically results in a 2–8% increase on some or all of their shipping services. These annual adjustments allow carriers to improve their services and infrastructure, while also keeping up with inflation.
What does Sendify do?
For most small and medium-sized businesses, these annual increases result in higher shipping costs, since they lack the leverage to negotiate significant discounts directly with carriers. As a Sendify customer, however, SMEs still benefit from market-leading rates thanks to the shipping volume of the 30 000 companies that ship through Sendify.
Temporary Surcharges During Peak Season
During the peak season, which runs from October to January, some carriers apply a temporary surcharge of 5–10% on certain or all of their services. This surcharge is a direct result of the carriers’ increased workload, which peaks during Black Week and Christmas. The surcharge is removed immediately after the peak season ends.
What does Sendify do?
Sendify always includes any applicable peak season surcharges in the freight price you see when booking shipments. This way, you don’t need to worry about unexpected extra charges on your invoice or figure out whether and how the surcharge applies to your shipment.
Annual or Temporary Increases in Fuel Surcharges
The fuel surcharge is an additional cost added to your invoice, typically accounting for around 25% of a truck’s total transport cost. Increases in the fuel surcharge are a direct result of global events that affect oil prices—such as wars or limited resource availability.
What does Sendify do?
Sendify ensures that fuel surcharges are always included in the freight price you see when booking shipments. This means you don’t need to track fluctuating fuel surcharge levels yourself, which can vary significantly throughout the year, nor worry about hidden costs appearing on your invoice.