Minimum Package Charges, and Why They Matter
By Joe Wilkinson, www.parcelindustry.com
When negotiating a parcel carrier agreement there is an endless number of factors that can be potentially considered and negotiated. To start you will always need to review the discounts on your most commonly used service levels as well as a handful of commonly used accessorial and surcharges; this is and will always be an essential aspect when attaining a competitive agreement. However, many times the details are overlooked and one of the most important and least recognized in parcel pricing is minimum package charges.
I am always surprised by the number of shippers who do not understand the role the minimum package charge plays in parcel costs. Still more believe that the minimum package charge is nonnegotiable. Not so. Like any component of a parcel agreement, concessions are possible. Remember, everything is negotiable.
To better explain the importance let’s consider a…