When it comes to the various fees of shipping, it can sometimes feel like lengthy battles with giants like UPS. Even when it feels like a victory after a new contract is signed, how can you ensure the best possible contract was achieved for your business? Our team at ShipSigma understands that performing activities like a parcel invoice audit can work alongside your contract to optimize your budgets.
These audits can save you from some of the costly UPS surcharges that often accrue. With the events that have taken place the past few years, rates and other charges have been on a steady incline. The focus of this piece will cover the over maximum limits charges and additional information about UPS fees.
Any number of circumstances can impact UPS rates and charges, and if you have had to deal with surcharges, you know just how sneaky some of these costs feel. So what causes the over maximum limits charge to occur on your shipment? According to UPS’ Rate and Service Guide, this fee is caused by exceeding three possible limits on the applicable package: maximum weight, length, and size.
Like most other surcharges and fees, they can quickly add up if not appropriately addressed through an audit or similar evaluation method. ShipSigma’s Parcel Invoice Audit is an industry leading tool that runs a 50-point check, and then immediately files a claim on your behalf to save you money.
Packages that weigh in at over 150 pounds, exceed 108 inches in length, or exceed a total of 165 inches in length plus girth combined, as measured to determine their billable weight, are not accepted for transportation. Here is how the calculation for the last parameter is performed: (2 x width) + (2 x height).
UPS has unlimited discretion when it comes to returning packages that meet the requirements for this charge. Any package that meets one or more of these limits will be charged an additional $1,025. The rate and service guide linked above provides a great resource for ensuring that your packages are within the UPS parameters. The guide features a step-by-step process to accurately calculate the weight and size of your packages.
The UPS accessorial charge is a catch-all term used to describe any additional services that go beyond standard transportation guidelines they have and are not included in their base shipping rates. While the over maximum limits charge is not accessorial, they are closely related. More so, if you are being charged for one, there is a good chance you are being charged for the other one as well.
Performing routine parcel invoice audits can help ensure you are not being charged unnecessarily by UPS. The problem is that performing these audits is not always the most straightforward task, which is why ShipSigma's Parcel Invoice Audit service is fully automated. Our AI-powered platform automatically scans weekly UPS or FedEx invoices, performs a 50+ point audit, and automatically files claims to save you money.
Another way to get better rates with UPS is to negotiate a new contract. This can seem rather obvious, and we understand that whoever you have negotiating your current contract is getting the best deal they can. What if it could be even better? Our Carrier Contract Negotiation can help supercharge your current efforts regarding securing a new shipping contract. We do not want to take over this process by any means. Instead, we want to supply your team with valuable information such as:
What to ask for, when to ask, and how to ask for it
Because we continue to build a team of small parcel shipping and logistics experts and former employees from UPS and FedEx, we see firsthand how companies could use assistance in their business's audit and negotiation sectors. Conducting a thorough parcel invoice audit allows you to discover discrepancies in your invoices and catch other costly errors made by your carrier.
Contact us to see how we can empower all aspects of your shipping business.