The major freight carriers are currently all announcing annual price increases – many of them are up by 3-8%.
With a large part of freight costs driven by oil prices, and with pressures due to increased labor costs, this may be painful, but it is not surprising.
But what is surprising, is that freight surcharges often increase by much more than the headlined rates.
For example, an increase of 1€ for an Out-Of-Area delivery which previously cost 9€. This may not seem like a big rise, but it’s actually more than 11%. And many companies spend a surprisingly large share of their total freight spend on surcharges (also known as extras or accessorials), without understanding the reasons for and size of these charges.
Hidden price hikes may not make the headlines, but they can have a big, and unplanned impact on your bottom-line!
Do you have the ability to track your ongoing spend on surcharges? Or quantify the expected impact on total freight costs?
Polygon’s Total Freight Efficiency platform enables you to improve visibility of, and account for, all your freights costs – including the “hidden” extra surcharges. We believe, that the first step towards reducing the cost of freight, is to improve your visibility and understanding of how you currently spend your money.
Contact us to find out more.
The Polygon Team