In addition to being a thought leader in the transportation space, David also has deep expertise in technology with a focus on data science and software engineering, having previously held technology leadership roles at General Electric and at a startup subsequently acquired by Oracle.

Director of Strategy & Analytics, following over a decade in Sales, Marketing, and Pricing related roles at FedEx.

Surcharge Price Increases: AHS, Address Correction, Dangerous Goods, Delivery Area Surcharges, COD, Signature Options, Oversize Package, Residential DeliveryĪs all shipments will not be impacted in the same way, it’s important for shippers to understand their package characteristics and have access to analytical tools to thoroughly model the impact of all carrier pricing changes.ĭownload the PDF for an easily printable version of this analysis!ĭavid Faour currently serves as Shipware’s Sr.

AHS Size limit reduced from 60” to 48” (Both Carriers).Weekly Fuel Surcharge Adjustment (February 2017, FedEx Only).Dimensional Weight Factor Reduced from 166 to 139 (January 2017, FedEx Only).2017 List Rates Announced (Both Carriers).Going into 2017, managing transportation spend is becoming even more complicated. Combined impact of GRI and Dimensional Weight Factor at List Rates. At list prices, the net increase on this package ranges from 9.19% to 20.97%, much higher than announced increases.įig 2. Beginning January 2 nd, this box will be billed at 19lb, an increase of 3lb over the 16lb bill weight based on 2016 rules.

Top 25 Box Sizes and minimum billable weight by dim factor.Ĭonsider a Zone 5 shipment that weighs 15lb and measures 18x12x12, or 2592 cubic inches. To help shippers understand the impact of the 2017 GRI, we will explore the impact of the dimensional weight change in some detail, and then review overall price increases, selected changes in surcharges, and compare the FedEx announcement to UPS planned increases in 2017.įig 1. While the latest announcement is more modest than in previous years, the true impact may be costlier for many customers due to service guide changes such as the reduction in dimensional weight factor from 166 to 139.įedEx has indicated that the change simplifies calculation of dimensional weight by standardizing the dimensional weight factor to 139 for all domestic and international Express and Ground packages this change will also increase costs for some shipments by over 20%. FedEx SmartPost rates will also change, but rates are not yet available for preview. On September 19, the Memphis-based transportation firm announced a GRI of 3.9% for Express and International, and 4.9% for Ground, Home Delivery, and Freight services. With each year’s General Rate Increase announcement, shippers inevitably ask, “How much is this really going to cost me?” This year, it got quite a bit harder to answer that question for FedEx shippers.

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