Understanding Rolling Averages Used by Parcel Carriers
By Carl Hutchinson www.parcelindustry.com
Some of the most frequently asked questions I receive from shippers of all sizes regard rolling averages used by parcel carriers. Typical questions include:
– What are rolling averages used for?
– How are rolling averages calculated?
– How can I tell what the carrier has calculated my rolling average to be?
– Why is it important for me to understand rolling averages?
– What is the impact if my average changes significantly?
– And many more.
The two major parcel carriers, FedEx and UPS, use several different types of discounts when working with shippers. A typical carrier agreement will have multiple types of discounts, or discount structures, in the agreement. The type of discount offered might differ depending on the service for which a discount is offered. In…