ParcelAdvisor’s agents watch your shipping, contracts, and the carrier market, then quantify the cost impact of changes and recommend what to do next.
From a carrier change to a stronger proposal
A UPS fuel-table change adds $66,783 a year at the current volume. Eight earlier rate, surcharge, and fuel-table increases bring the combined annual impact to $836,209, or 19.8%, across 20 carrier pricing changes. Advisor drafts a carrier request. You copy it and send it from your email app. Advisor compares the same packages under both agreements. The first offer saves $555,362 a year. Minimum charges absorb $237,049 of the added discount benefit, including associated fuel. Monthly packages at minimum rise from 7,840 (28%) to 12,320 (44%) of the same 28,000 packages. Newly constrained packages receive part of the improvement; packages already at minimum receive none. Advisor drafts a request for minimum net charge relief without disclosing internal savings. You copy and send it externally, then upload the revised proposal. The revised offer saves $877,419 a year, or 17.34% of current shipping cost. It offsets all $836,209 in annual carrier increases, plus $41,210. Minimum charges still affect 3,360 packages per month (12%).
ParcelAdvisor.ai
Good morning.
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Standard
Summarize PulseAnalyze SpendDIM ImpactFuel ImpactAnalyze Tier Position
PulseView all
UPS fuel table updated.9:41 AM
Cost per package moved above the six-month baselineTue
Contract compliance review is readyMon
Earned-discount tier position needs attentionFri
Cost per package$14.86 /pkg
Cost/pkg · trailing 6mo
Rate compliance$2,169
Overbilled · trailing 3mo
Artifacts
Parcel cost leadership briefv3 · Mon · Shared
Carrier proposal comparisonv1 · Fri · Private
Pulse / Carrier changesAnalysis ready
UPS fuel table updated.
April 13, 2026
+$0.20per package$14.86 $15.06carrier-only replay
UPS’s latest fuel-table change adds $66,783 a year (+1.34%).
All carrier changes combined
Along with 8 earlier rate, surcharge, and fuel-table increases since December 2024, the combined impact is now $836,209 a year (+19.8%).
Recommended next step
It’s time to renegotiate your carrier agreement.
Annualized · Current volume · Fuel prices held constant
Ask your parcel data anything…
Standard
UPSCarrier updateups.com
Fuel table updated
Ground + Air
New messageYour email app
ToUPS carrier rep
Agreement review: proposal requested within 30 days
Hello,
UPS has served our customers well, and our preference is to continue the relationship. However, carrier rate, surcharge, and fuel-table changes over the past 20 months have increased our shipping costs by 19.80%, equivalent to $836,209 annually at our current volume, with market fuel prices held constant.
The increase extends beyond the annual rate releases. Fuel-table revisions and delivery-area changes have added cost under our existing agreement. We can share the supporting analysis showing their impact on the same shipping profile.
Please have your pricing team provide a written proposal within 30 days addressing:
Immediate cost relief: improved transportation discounts, fuel terms, and accessorial pricing that offset these increases at our current volume.
Protection against further increases: an agreed ceiling on annual increases, with clear treatment of surcharges and accessorials.
Predictable qualification: discounts and incentives aligned with our existing shipping profile, without requiring additional volume.
Advance notice and review: written notice of material pricing changes and an opportunity to revisit terms when their combined impact exceeds an agreed threshold.
We recognize this is a mid-term request. In exchange for meaningful relief and stronger cost protections, we would consider a new two- to three-year term.
Please send me your proposed approach and available times for a working session.
+19.8%total carrier-driven costFuel prices held constant
Dec 22, 2024. Same shipments. Same agreement.. Current carrier-driven modeled cost change, with fuel prices held constant: 0.0 percent.
At this point+0.0%0% baseline
UPS · Dec ’24Aug ’26
Same shipments. Same agreement. Carrier fuel-table changes included.
Know what’s really driving your costs.
Ask Advisor what changed, what it cost you, and what to do next.
ParcelAdvisor.aiAdvisor / Fuel cost analysis
28,000 packages/month · Current agreement · UPS fuel tables
You
How have fuel prices affected my shipping costs?
Advisor
Your fuel costs rose for two reasons. UPS’s table changes had the bigger impact.
Over these 20 months, UPS’s fuel-table changes added 5.24 percentage points to your shipping costs, even with fuel prices held constant. Changes in fuel prices added another 2.68 points.
Full-period contribution · Same baseline shipping cost
UPS fuel-table changesFuel prices held constant
+5.24 pts
Market fuel-price movements
+2.68 pts
The 5.24 points from UPS’s tables are already included in the 19.8% carrier-driven increase above. The fuel-price impact is additional.
Compare fuel terms as well as transportation discounts in your next proposal.
Your qualifying gross average has slipped to $164,300, below the $180,000 weekly floor.
Your 2.5% rebate depends on meeting that floor.
Rolling 52-week qualifying gross average
Current agreement
Cost impact
$22,580 in projected quarterly rebate is at risk.
On $903,185 in eligible net transportation next quarter, your rebate would be $0 if your qualifying average stays below the floor.
Request a lower qualifying floor.
Ask UPS to lower the weekly floor to $160,000 and keep your 2.5% rebate. That would restore qualification at your current shipping pace.
Qualification stays on watch. You lead the carrier conversation.
A bigger discount doesn’t always mean a lower bill.
Find where minimum charges limit your discounts, and what to negotiate next.
ParcelAdvisor.aiAdvisor / Minimum charges
You
How much are minimum charges costing us?
Advisor
Minimum charges add an estimated $7,750.40 per month.
Ground accounts for $4,939.20 of that. 22.0% of its packages hit the minimum.
Monthly minimum-charge impact by service
Service
Packages at minimum
Added cost
Ground
5,040
$4,939.20
2nd Day Air
2,240
$2,296.00
Next Day Air Saver
560
$515.20
Total · 3 services
7,840
$7,750.40
Negotiate the minimum, too.
On packages already at the minimum, a larger transportation discount alone won’t lower the base charge. Ask for minimum net charge relief on Ground and 2nd Day Air, where the impact is greatest.
Find the catch before you sign.
Carriers have expert pricing teams behind their proposals. ParcelAdvisor helps you see past the headline discount to what the terms mean for your shipping.
Custom DIM terms
Fewer packages billed at DIM weight can lower gross transportation spend. If incentives use that spend, your discount tier can drop.
Deeper discounts
The minimum net charge can hold a package’s price in place, even when its transportation discount improves.
Richer incentives
The best discounts may depend on qualifying spend your current shipping doesn’t reach.
ParcelAdvisor.aiAdvisor / Proposal review
You
UPS-proposal.pdf
Does this proposal offset the carrier increases?
Advisor
It saves $555,362 a year, but falls short.
Minimum charges erase $237,049 of the added discount and related fuel savings. Packages at minimum rise from 28% to 44%.
Annual savings comparison
Before minimum erosion
$792,411
Lost to minimums
−$237,049
First-offer savings
$555,362per year
Keep the discounts. Lower the minimums.
Ask the carrier to keep the proposed discounts and lower minimum net charges on the affected services.
Revised offer: $877,419 in annual savings.
The carrier keeps the discounts and improves the minimum terms. Estimated savings reach 17.34% of shipping cost, offsetting the accumulated carrier increases.