Blog

Fedex Transportation Services Agreement


“FedEx Express will continue the exceptional service we have provided to the USPS over the past 12 years under this new agreement,” said David J. Bronczek, President and CEO of FedEx Express. “This contract provides added value and additional flexibility so that the USPS can respond to possible changes. We look forward to continuing our successful relationship with the USPS. Under the seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS express mail and priority mail in the United States. As we mentioned in the UPS article, all transportation services are subject to a minimum fee, namely the Zone 2 fare for shipments by letter, pak or one pound on domestic flights. The minimum discounts make discounts for lighter shipments more meaningful, and your FedEx agreement includes minimum discounts for domestic express shipments. Depending on the contract format, you will find them with the basic discounts for older contracts and at the end of the Express section for newer contracts. Whether you need the next day, 2 days or 3 days, this section lists the terms of this part of the Agreement. You want to be sure that prices are clear for express and international export shipments, as well as clarification on fees and surcharges that may affect your total shipping costs. A key factor in these conditions is that you rightly earn a money-back guarantee if deliveries are late or in conflict with the terms of your agreement.

Make sure you don`t give up this right at any time in your FedEx contract, as it can ultimately cost your business money and increase unnecessary shipping costs. With some older agreements, you can find an automation bonus discount that rewards you with an additional discount for using an approved device to automate shipments. This reduction has become scarcer as more and more companies move away from manual processes. For some airlines, FedEx International Air may include discounts directly below domestic express fares. For other shippers, especially those with a larger international volume, FedEx will issue separate export and import agreements with prices for international letters, paks, small packages, trucks, and freight. The majority of discounts are built into basic discounts, as the discounts earned typically represent a smaller portion of a shipper`s total international price compared to UPS. FedEx may also include prices for the 3rd country (shipments that do not originate from or receive in the United States) in this section. FedEx Tools and Technologies: FedEx has the tools your team needs for all your shipping and transportation needs. FedEx first lists the conditions applicable to additional discounts, which are usually between one and three years. Next comes the list of fees, applicable service and discounts/discounts.

For Express, unless otherwise stated, discounts should apply to all domestic flights. All discounts on international fees are expressly stated as such. On the floor, each charge is indicated next to it, whether the discount applies to the floor, home delivery or SmartPost. Make sure all your bases are covered before you sign! My state has tendering requirements. Can agencies in my state use this program without bidding? This contract was requested and awarded by the University of California, a public authority, in competition. Through the Joint Powers Authority or an inter-local agreement, local and state authorities can “rely” on this contract through the OMNIA partners requested as part of the competition. This meets the requirements of tenders in most states. Express: FedEx Express invented express transportation and continues to be an industry leader in delivering fast, reliable and fast delivery. Field: FedEx Ground is a leading North American provider of small ground parcel delivery services, offering cost-effective and secure service for all business addresses in the U.S. and Canada, as well as home delivery to 100% of U.S. households through FedEx home delivery service. Last but not least, we need to check the MBG/GSR terms of your agreement.

While UPS generally does not include guaranteed service refund (GSR) language, unless there is a specific waiver, each separate FedEx agreement contains its own money back guarantee (MBG) specific wording. This means that there is a clause in your express contract, another clause in your basic agreement and additional clauses for your export or import agreements if you have separate agreements for these services. Each MBG clause may vary, so it may be possible for you to be eligible for MBGs on your land and import services, but waive the right to submit them for Domestic Express and Export. The MBG/GSR language of each chord can be found at the end of the accessory. If a contract does not include an accessory, it will be found after the discounts. Assuming you have a full agreement, Interior Express prices will be shown first, with basic discounts guaranteed to you regardless of volume, followed by volume-based discounts. Unlike UPS, FedEx has traditionally offered basic discounts on its domestic flights, but the recent deals we`ve seen indicate a trend that all of a shipper`s domestic air discounts depend on volume. Like UPS, FedEx calculates its volume requirements, called vested discounts, based on aggregate (undiscounted) gross transportation costs over the previous 52 weeks. Unlike UPS, which reflects this as a weekly average, FedEx uses a mobile annual sum.

Similar to UPS`s portfolio level increase, FedEx offers you a grace period discount with each new agreement, typically between 4 and 12 weeks, that you get regardless of your volume. It`s worth noting that we sometimes find that FedEx grace period discount lists are actually less than a shipper`s volume that they would actually be eligible for, especially if they change carriers, so make sure your grace period discounts match your actual volume. A key difference in the fare structures between the two airlines for international air cargo shipments is that, although UPS uses the letter or 1 pound fare for each applicable zone as the standard minimum, FedEx describes its minimum fares for each zone in one or more separate tables at the end of the Express section of the agreement as a result of any additional discounts for Express. These minimum rates are already reduced compared to the letter, pak, or 1-pound rate, so the default discounts that come with a standard proposal are less common, although FedEx may include more aggressive discounts if you ask for it. Note that the wording attached to these tables indicates that they may change with each increase in list rates, which means that any minimum table you have in your agreement will become obsolete the following year after the general rate increase. Although UPS sometimes creates separate surcharges for specific price lines, such as discounts, they typically issue wholesale proposals for the shipper`s entire volume, with each new agreement completely replacing the previous ones. However, FedEx is different; The basic rule is that all current prices that are not explicitly mentioned in a new proposal will remain in force even after the new proposal is signed. For example, if your FedEx employee issues you a new ground pricing-only agreement, all of your current express prices will not be affected if you sign them. Fees and surcharges apply to shipments based on factors that may include the place of delivery, delivery dates and the weight of the package. The clarity of these terms and conditions and prices is an important aspect of your agreement with FedEx that you do not want to overlook. Also, do not waive the right to recover money if they are earned on deliveries in the field.

.

Related Posts