Carriers periodically increase their price rates it can be annually or as the need arises or sometimes it does not happen for multiple years. For several reasons rates changes due to volatility in commodity prices, fuel price increases, health crisis, fortuitous events, and other economic events which affect the logistics industry. Hence, we need to be vigilant of the price rate increase; missed carrier uprate notices and failure to action them will result in significant direct financial losses and create additional work to recoup or write off the losses.
This article will outline how you can implement a rate increase that you have been advised of by a carrier. Note that this process currently cannot be carried out in advance of the rate increase being effective as the existing rates will be immediately overwritten.
To follow this process you will need to have Admin level access to the FreightExchange website.
- Navigate to the Rate Management menu option
- Navigate to "Courier" drop down section (screenshot below)
- Select "Services, zones and rates" (screenshot below)
View carrier services
2. Select the Carrier from the drop down menu.
The existing sevices for the carrier will be displayed. You can view the existing rates by clicking the $ button alongside the relevant service.
How to process a % price increase
1. Navigate to the carrier and service you need to change
2. Click the $ button to view the rates
3. Click the three lines to reveal the Bulk rate update popup
4. Make the bulk changes required and click "Apply changes"
Correctly applying an increase
The bulk rate update screen allows you to make changes to different parts of the carrier's rates. The correct ones to use will depend on the nature of the increase you have been advised of.
A common example is that the carrier has implemented a blanket percentage increase to their rates. If this is the case you should enter the same percentage increase in all three fields as shown below:
In this example we will apply a 3.5% increase to the basic and per kilo (additional) rates as well as the minimum price.
If the carrier has only increased their rates without increasing the minimukm price then you would complete the screen as below:
Note that it is also possible to increase the rates by a fixed amount as well as combiing fixed and percentage increases. As a final example if the carrier has said they are increasing their weight based rates by 4% but the minimum by $10 you would complete the screen as shown below:
If you are in doubt as to the actual increase being applied you should always check with the carrier.
How to process updated rates on additional fees:
1. On the Rate Management screen; click on EDIT CARRIER
There is a pop up screen that will allow you to edit fuel levy
Do not forget to click save to keep the changes you made
To edit surcharge fees, go to COMPANIES and search for the carrier
Go to Show company details:
Go to the carrier set up screen and edit as needed