Dive in as a carrier expert shares tips for mitigating the upcoming 2025 General Rate Increases

This blog was written by ProShip partner, Timur Eligulashvili of Logistics Remix.

The 2025 rate hikes are another wake-up call for businesses to rethink their shipping strategies. Understanding the upcoming rate changes, such as the sharp increase in additional handling fees and changes to area surcharge zip codes, can help shippers better prepare. Implementing smart mitigation tactics can keep costs under control while continuing to meet customer expectations.

Here’s how to approach these challenges effectively:

1. Analyze the Impact of Rate Increases

Dive deep into your shipping data to identify where the increases hit hardest. Focus on surcharges, zones, and service levels to map out your most significant cost drivers. To do this, you’ll need to have reliable shipment history data to evaluate, and it will also help to have this data handy for a potential parcel Request for Proposal (RFP).

Once you have your data set, apply the increases to: Accessorial charges, weight/zone rates, updates to area surcharge zip codes, among other changes.

This analysis will help you pinpoint where the largest increases will impact costs and estimate the overall cost increase if no action is taken.

Pro Tip: Avoid using shipment charges from peak season for your analysis, as they often include peak surcharges that can skew results.

2. Optimize Your Shipping Profile

Optimizing your shipping profile is a powerful way to reduce costs, improve efficiency, and stay ahead of surcharge increases.

Fulfillment Routing: Choose a warehouse closer to your customer to reduce transit distance and shipping costs.

Right-Size Packaging: Ensure packaging is tailored to fit the product dimensions to avoid triggering dimensional or oversized surcharges.

Ship Strategically: Consolidate multiple orders into single shipments to minimize overall expenses.

3. Leverage Carrier Diversification

Diversifying your carrier network reduces dependency on a single provider, mitigating risks and increasing flexibility to choose the most cost-effective options.

Regional Carriers: These carriers often offer more competitive rates and fewer surcharges, making them an attractive option.

Multi-Carrier Shipping Software: Invest in technology that dynamically selects the best carrier based on cost, delivery speed, and service reliability.

4. Negotiate Contracts or Run a Parcel RFP

Approach carrier negotiations armed with your shipping history data. Use this data to negotiate discounts on surcharges that represent a significant portion of your costs.

Since there are dozens of negotiable items, consider seeking help from an experienced consultant or leveraging technology designed to simplify the negotiation process.

5. Monitor and Audit Shipping Costs

Frequent rate changes mean businesses must actively track their shipping expenses to identify errors or overcharges. Regularly audit invoices to ensure compliance with negotiated terms and recoup unnecessary costs.

Closing Thoughts

Beating the rate hike isn’t just about reacting to increases. It’s about proactively optimizing your operations to stay competitive. By analyzing data, diversifying your carrier network, optimizing shipping profiles, and negotiating smarter contracts, you can turn rising rates into an opportunity for greater efficiency and cost control.

About the Author:

Timur Eligulashvili is the Founder and President of Logistics Remix, a carrier representative company. Logistics Remix helps retailers and 3PLs bring new delivery providers into their network to save on cost, improve delivery performance, and drive mutual success. Prior to founding Logistics Remix, he gained 20 years of experience in logistics and has a unique perspective from experience in previous roles at Lone Star Overnight, ShippingEasy, uShip, Echo Global Logistics, C.H. Robinson, and Honda Logistics.

Connect with Timur to learn how his extensive experience can benefit your organization and stay up-to-date with the latest developments in the logistics and last-mile delivery fields.

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