Subscribe to our free, weekly email newsletter!


Cloud-based analytics may take some of the mystery out of parcel shipping pricing

By Patrick Burnson, Executive Editor
April 23, 2014

According to G. Scott Knight President Sunago Systems Inc., 5.9 percent of all carrier invoices for parcel shipping are incorrect. ParcelView – a cloud-based shipping analytics and auditing tool recently introduced by his company –  is designed to provide visibility, accountability and control needed to achieve total parcel spend optimization.

According to Knight, shippers can’t save money until they analyze carrier contract and shipping practices.

“Actual shipping characteristics can only be found in historical data; and carrier contracts are more conditional and complicated than ever,” he says in a website video.

Jerry Hempstead, president of Hempstead Consulting, says that the while the model is not unique, it represents a refinement of past efforts.

David Ross, transportation and logistics director at Stifel Nicolaus told LM in a recent interview that carriers continue to be focused on yield management.

“Shippers report that it’s more challenging than ever to negotiate parcel contracts with multiple sets of list rates, different fuel surcharges, complex revenue-based incentives, discount exclusions, minimum charges, and multiple punitive contract clauses,” he said.

Furthermore, said Knight, over $2 billion dollars in carrier overcharges go uncollected each year as shippers do not have the time or resources to collect refunds.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

Article Topics

News · UPS · FedEx · Parcel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA