Ever wonder why legacy carrier rates are so expensive? One would think that “the big guys” would have less expensive rates than smaller delivery players since they presumably have a larger network and more infrastructure, and more opportunities for cost savings. In reality, their rates are oftentimes, surprisingly, more expensive than the newer, asset-light delivery providers like us. Let’s take a closer look at the surcharges from legacy delivery carriers like UPS and FedEx VS AxleHire shipping surcharges and how they stack up with one another.
Traditional Carriers VS AxleHire Shipping Surcharges Chart
Labor shortages, surcharges, and union issues have led national carriers to increase their rates and overall fees for deliveries. While rates from national carriers have gone up, AxleHire’s rates have remained steady, allowing us to offer more competitive pricing for our clients from coast-to-coast.
Large legacy shippers typically charge carrier surcharges in addition to the shipping costs that are charged by the carrier. This further stacks the cards in their favor and takes additional margin from the eCommerce retailer.
We have compiled a chart that compares AxleHire’s rates to some of the legacy players in the game, including USPS, UPS, FedEx, Amazon, DHL, Ontrac/Lasership, and LoneStar Overnight.
How do your delivery carrier’s fees stack up?
AxleHire Shipping Surcharges
AxleHire does not charge surcharges for residential deliveries, peak residential deliveries, or peak season deliveries.
USPS Shipping Surcharges
USPS does not charge surcharges for residential deliveries and peak residential deliveries, but they do charge surcharges for peak season deliveries.
UPS Shipping Surcharges
UPS does charge surcharges for residential deliveries and peak residential deliveries but does not charge surcharges for peak season deliveries.
FedEx Shipping Surcharges
FedEx does charge surcharges for residential deliveries and peak residential deliveries but does not charge surcharges for peak season deliveries.
Amazon Shipping Surcharges
Amazon does not charge surcharges for residential deliveries and peak residential deliveries, but they do charge surcharges for peak season deliveries.
DHL Shipping Surcharges
DHL does not charge surcharges for residential deliveries and peak residential deliveries, but they do charge surcharges for peak season deliveries.
OnTrack/Lasership Shipping Surcharges
OnTrack/Lasership does not charge surcharges for residential deliveries, but they do charge surcharges for peak residential deliveries and peak season deliveries.
LoneStar Overnight Shipping Surcharges
LoneStar Overnight does not charge surcharges for residential deliveries and peak residential deliveries, but they do charge surcharges for peak season deliveries.
Are Shipping Surcharges the Cost of Doing Business?
In the world of shipping, delivery carrier surcharges are common. But no, surcharges can and should not be just the cost of doing business. Why? Because eCommerce businesses don’t have to accept all the surcharges they are currently paying.
Traditional last-mile carriers were built to support legacy B2B deliveries, not today’s rapidly growing volume of eCommerce residential deliveries. Legacy carriers rely on a rigid, asset-heavy operating model that does not allow for the flexibility, speed, efficiency, or accuracy needed to meet the demands of eCommerce sellers or consumers at an affordable price point.
Typically, sellers can have it fast, or they can have it affordable, but they can’t have both.
Instead of looking to the big delivery partners for all of a business’ delivery needs, they can choose a more flexible logistics solution, such as AxleHire, that aligns to the specific needs of each client and their customers.
How Does AxleHire Keep Its Delivery Fees Down?
AxleHire’s purpose-built technology and asset-light operational model empowers eCommerce sellers to ship faster and more economically, delivering a positive brand image to the customer’s doorstep. Logistics teams can now provide a differentiated experience at a competitive cost.
AxleHire can leverage its combination of purpose-built technology and asset-light operations to provide a level of speed, convenience, and responsiveness that legacy carriers can’t match.
Parcels are aggregated and the demand for parcels can be dynamically matched to the supply of drivers each day to produce more efficient routing, lower costs, and more sustainable deliveries. Delivery times are reduced from the 3-5 day standard ground delivery window for legacy carriers to a next- and same-day delivery window while maintaining a cost structure that is competitive to legacy carriers’ ground rates.
AxleHire’s technology provides greater convenience and visibility for clients and customers to track each package at each step in the process and to ensure that the right package gets to the right door at the right time, every time.
