Sneak Peek at 2012 Shippers' Survey on Regional Parcel Carrier Usage

Posted on Oct 4, 2012 1:25:00 PM

The 2012 PARCEL Forum will shine the spotlight on regional parcel carriers with multiple themed tracks and educational sessions. The regional carriers advertise many benefits over the national carriers including cost savings, greater service options including same day delivery, and custom/specialized solutions. Is your business a candidate for regional carrier services?

To better understand the regional carrier market, its advantages and potential disadvantages as well as shipper’s experiences using regional carriers, the PARCEL team once again partnered with the parcel industry experts at Shipware. PARCEL will publish the results of the “2012 Shipper’s Survey on Regional Parcel Carrier Usage” in the October edition, and Shipware will unveil survey results at the Parcel Forum.

Here’s a teaser, but look for the full results at the PARCEL Forum and in the September/October issue of PARCEL.

Parcel Magazine Digital Issue

Like the name implies, regional carriers serve a specific region within the U.S. offering reliable package delivery services similar to FedEx and UPS. Regional carriers such as Eastern Connection, Lone Star Overnight, OnTrac, Spee-Dee Delivery and Pitt-Ohio cover more than 80% of the U.S. population and specialize in short-haul delivery (typically up to 500 miles). (To view the OnTrac Service Area, click here.)

Regional carriers can offer cost savings of 10% to 40% over UPS and FedEx pricing. As an example, Spee-Dee Delivery’s pricing starts at $3.79 for next-day delivery of a 1-pound package within Zone 2. Compared with UPS and FedEx’s minimum charge of $5.49, shippers would save 31%.

Since regionals concentrate operations in a well-defined geographic market, service to that market is often better than what the national carriers provide. For example, Eastern Connection handles East Coast deliveries from Maine to Virginia, all included as “next day” delivery points. Using FedEx and UPS Ground service, the same coverage area extends to five zones for 1-4 day delivery.

OnTrac Sprinter Van
Survey respondents listed the following responses as “benefits realized to regional carrier usage”: Larger next day delivery footprint; Better service than nationals; Cost savings; Fewer surcharges; Better billing terms; Better sales rep; Improved reporting; Better dimensional divisor; Better or no minimum charge; Improved customer service; Specialized/Custom solutions; and Same day options.

Despite the many advantages, shippers are largely unaware these carriers exist. Only 39% of survey respondents reported using regional carriers, and two-thirds of that group ship less than 5% of their overall volume via regionals.

Are there any downsides to shifting parcels away from national carriers in favor of regional carriers? Is service up to par? What about customer service, caliber of the driver, automation, reporting and tracking? And just how much are the reported cost savings?

The complete survey results will reveal opportunities for shippers as well as potential mistakes to avoid. Again, look for the full results in the September/October issue of PARCEL. See you at the PARCEL Forum!

Rob Martinez, DLP is President & CEO of Shipware LLC, a parcel auditing and consulting company based in San Diego, CA. He welcomes questions and comments and can be reached at rob@shipware.com.

Topics: regional parcel carriers, regional carriers, 40% less, shipping companies, OnTrac, parcel shipping, PARCEL Magazine

Reno, Nevada – Save a Transit Day at Ground Rates!

Posted on Feb 28, 2011 12:39:00 PM

If you’re looking for a more efficient and cost-effective way to distribute your products to the Western Region of the United States, look no further. Many companies are saving both time and OnTrac Reno to West Coast Deliverymoney by choosing Reno, Nevada as their centralized distribution center for disbursing their products to the West Coast.

Nevada Tax Benefits

Using Reno, Nevada as your centralized distribution center offers several financial benefits for your business.  One advantage the state of Nevada offers is its exceptionally low or nonexistent taxes. Listed below are just a few of the tax accommodations in Nevada that give it an edge over neighboring states.  These advantages include:

  • No corporate income tax
  • No personal income tax
  • No franchise tax
  • No inventory tax
  • No corporate shares tax
  • No gross receipts tax
  • Low property tax

Shipping with OnTrac

In addition to the financial benefits, the city of RenOnTrac Reno to West Coast Overnighto’s prime location allows you to deliver your packages overnight by using OnTrac. When shipping to California, Arizona, Nevada, Oregon, Washington and Utah, CalTrac* Service reduces your delivery time by a full transit day when compared to our major competitors.

To learn more about relocating to Reno, Nevada, visit the Nevada Secretary of State Business Center website. If you would like to see how OnTrac can save you a transit day on your deliveries at ground rates, please visit ontrac.com/servicesAreas.asp

Written by: Christine Hord

*Volume restrictions apply.

Topics: overnight delivery in CA, overnight delivery in California, package delivery, Reno, overnight shipping at ground rates, 40% less, OnTrac

5 Ways to Save Money with a Regional Package Delivery Company

Posted on Oct 1, 2009 4:28:00 PM

In the midst of the current economic climate, shippers are actively seeking to reduce their costs.  Shipping with a regional package delivery company can reduce a company's shipping spend by as much as 40%.

Just by eliminating the 85 plus accessorial charges that the national carriers levy, a company can save over 25% off their current shipping costs.

Below are 5 reasons, shippers should consider using a regional package delivery carrier:

1) Increased Productivity - Since regional package delivery companies use ground-based solutions to deliver their packages, they have much greater flexibility in offering their customers later pickup times.  They can offer pickup times as late as 8:00 pm and still provide next-day delivery.  For shipments staying in the local area, pickups can be made as late as midnight.

2) Faster Deliveries - Because regional package delivery companies are geographically based, they can provide guaranteed next-day delivery for ground shipments to Zone 4 destinations over 600 miles away from the pickup point.  And can often save a transit day compared to major national carriers.

 

 

3) Aggressive Pricing - Because regional package delivery companies have a specific market niche to fill, they offer rates as low as 40% less than national carriers.  Large companies typically have national contracts with discounted rates from the national carriers.  But now with the exit of DHL from the domestic market there is no "low price leader" to speak of.  As we have seen from the 2009 rate increases, even in challenging economic times, the national carriers will continue to add accessorial charges and raise their rates.  It would very much be in the shipper's best interest to find out where their shipping spend lies on the the national carriers discount tiers. They may be able to move a significant volume over to a regional package delivery company, maintain their national discount level and significantly reduce their costs. 

4) Accessorial Fees- The duopoly of national carriers have over 85 additional charges (accessorials) that can be added to the base price of you shipments.  These include delivery area surcharges, residential surcharges and additional handling fees.  They can add as much as 28% to your package rate.  Most regional carriers limit their additional charges to a handful of fees such as CODs, Saturday delivery and declared value.

5) Within the Region- The majority of packages shipped by companies stay withing their general geographic region.  According to a study done by The Colography Group, 70% of of packages remain within the Zone 4, 600 mile radius of the shipping origin.  And, for regional carriers like OnTrac who also service Zone 5, that percentage climbs to over 80%. 

Using a regional package delivery company can increase your company's productivity by providing later pickup times, give you a speed to market advantage over  your competitors through improved transit times and reduce your shipping expenses through lower rates and fewer accessorial charges. 

Topics: accessorial charges, regional package delivery company, Zone 4 deliveries, overnight shipping at ground rates, save a transit day, 40% less