UPS and FedEx are the dominant small parcel shipping carriers in the industry. Although both carriers are very competitive with their rates, each company has to know what their shipping details are to ascertain which carrier to use. For example, the trend seems to be that FedEx is known for their excellent international and express shipping, while UPS excels in their Ground service. However, there are many cases where a company will use FedEx for their Ground and UPS for their express, depending on their specific account details such as volume, service type, etc. Another large factor for choosing one carrier over the other is due to carrier rate negotiation. The company can negotiate better rates from the carrier, based on their current volume, pattern of shipping, and rates.
It is also noteworthy that one has to focus on the net charge when comparing the rates of UPS and FedEx. It is not enough to decide which carrier to go with solely based on the discounts that they provide. For example, a 50% discount with UPS can still yield a greater net charge than the 35% discount from FedEx. What matters in the end, in terms of pricing, is the net charge – nothing else.
Since comparing rates with these 2 carriers can be somewhat complicated, Betachon can offer a company assistance in evaluating the differences in the carriers rates and choosing the best carrier for their specific logistical needs. It’s always important to choose the carrier that gives you the maximum savings, without comprising on quality of course.