As a 3PL, we understand the need to keep costs down while operating efficiently. We constantly search for ways to maximize the value our services provide. Core to NRI’s offering is managing outbound transportation across a broad network. For many, particularly those shipping high-volume ecommerce orders, freight is the most significant cost of order fulfillment. In recent times, freight surcharges have risen significantly. These surcharges have a large impact on total freight spend.
Typically, in the fourth quarter of the year carriers are exposed to capacity issues within their own networks. They are impacted by high volumes due to holiday shopping, combined again this year with industry-wide supply chain issues and labor challenges. During peak season, carriers implement additional surcharges to help them balance their increased seasonal operating costs. NRI works closely with carriers to secure confident deliverability of packages, but an increase in transportation costs should be anticipated and expected.
Surcharges are additional fees that apply on top of the transportation base rate, fuel rate, and other fees. It’s important to note that fees increase during peak to offset the extra labor and freight costs needed to process the larger volume of orders in the short period of peak season.
Understanding Fuel Rates:
A fuel surcharge is the total cost of gasoline fuel used to move one shipment. Since fueling is often the most expensive part of a long-distance shipment and fuel prices are at an all-time high, carriers can charge a surcharge rate above estimation. Our transportation team continues to be mindful of these charges but in most cases, it’s out of our control. All major carriers publicly post their fuel surcharge rates, and their websites are the best place to find daily information. NRI’s Transportation team is additionally available to help you navigate this information.
In order to prepare for the upcoming holiday season surcharges, please review the additional resources:
At NRI we strive to provide the best service at a reasonable cost. We also strive to maintain the level of service you have come to expect. Please reach out if you would like to ensure you have the best freight solutions selected for the holidays.