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Negotiate lower UPS and FedEx shipping costs
We combine your shipping data with our carrier pricing expertise to secure lower rates from UPS, FedEx, and major providers. Because we focus on optimizing your current contract, most clients reduce their spend without ever switching carriers.
What is parcel contract negotiation?
Parcel contract negotiation is the process of negotiating shipping rates and contract terms with carriers such as UPS and FedEx. It can include discounts, minimum charges, fuel surcharges and other fees. The goal is to lower your shipping costs based on your shipment volume and needs. You do not have to change carriers.
We review twelve months of your shipping invoices and compare your contract terms with those available to similar shippers. This parcel rate benchmarking helps us identify changes worth requesting. We then negotiate directly with your carrier.
Your discount is only part of your shipping cost.
Carrier proposals often emphasize the discount off published rates. That percentage is useful, but it does not explain the full cost of shipping.
Your cost also depends on the services, weight bands and zones covered by the discount, the volume needed to keep it, minimum charges, and accessorial fees. Agreements with the same discount can produce different costs per package.
We use your shipment history to calculate how these terms work together. That gives us specific requests and savings estimates to discuss with your carrier.
A parcel agreement can contain hundreds of negotiable provisions. The terms a carrier will accept change with its business priorities. Our team draws on carrier pricing experience and ongoing negotiations to assess what is possible for your account.
What we actually negotiate.
We review these terms alongside the transportation discount and assess which changes are worth negotiating.
- Base rates and incentive schedule
- Discounts off published rates, specified by service, weight band and zone.
- Earned discount tiers
- The revenue or volume thresholds that set your discount, and how the rate changes if you fall below them.
- Minimum net charge
- The minimum amount billed when the discounted rate is lower. We measure how many packages are affected.
- Fuel surcharge
- The fuel index, calculation basis, discounts and any caps in your agreement.
- Residential and delivery area surcharges
- Separate delivery fees that may not be covered by your transportation discount. We review the terms for each.
- Additional handling and large package
- Fees triggered by size, weight or packaging. We review the rate and check that the criteria were applied correctly.
- Dimensional weight and the DIM divisor
- The divisor converts package volume into dimensional weight. We estimate how a change would affect your billed weight and cost.
- Peak and demand surcharges
- Seasonal fees, including the thresholds and caps that affect your shipments.
- Service guarantee and refund terms
- Service guarantee coverage, any waivers and the eligible refunds associated with late deliveries.
- Amendment and expiration language
- Expiration dates, renewal terms and notice requirements, including surcharge discounts that end before the rest of the agreement.
What makes this different.
Experience in carrier pricing
Our team has worked in carrier pricing and account management. We understand how carriers evaluate requests and which terms they may be willing to change.
Requests backed by your shipping data
We calculate what each proposed change would save using your shipment history and compare it with terms available to similar shippers. We adapt the approach for UPS contract negotiation and FedEx contract negotiation.
Support for your carrier relationship
ebb Logistics leads the negotiation with your carrier on your behalf. Our aim is a stronger relationship and a better agreement with the carrier you already use, not a switch to a new one.
How this actually runs.
Review your current agreement
We review your discounts, volume tiers, minimum charges, fuel surcharges and accessorial fees, including any amendments. This shows which terms apply to your shipments and where changes may help.
ReviewAnalyze your shipping costs
We analyze twelve months of invoices by service, zone, weight and surcharge. We then calculate what the same shipments would cost under different rates and terms.
ModelingSet negotiation priorities
We rank proposed changes by potential savings and assess which terms the carrier is likely to accept.
TargetsNegotiate with your carrier
We lead the discussions with your carrier, use your shipping data to support each request, and compare offers before recommending an agreement.
NegotiationCheck the new rates on invoices
We check each invoice against the new agreement to confirm that rates and discounts were applied correctly. If we find a billing error, we file an eligible claim and follow up on the refund.
First invoicesMonitor the agreement over time
ebb Logic™ checks invoices weekly and tracks volume tiers, annual rate increases and surcharge changes. Our team explains any change that affects your costs and recommends what to do next.
Ongoing
Questions shippers ask first.
How much can we save by renegotiating our UPS or FedEx contract?
We just signed a new agreement. Is there anything to do?
Our discount is already 60 percent. Why would we renegotiate?
Will this damage our relationship with our carrier rep?
Do we have to switch carriers?
How long does a parcel contract negotiation take?
How are you paid?
What do you need from us to start?
Are UPS and FedEx shipping rates actually negotiable?
How do we know if our UPS or FedEx rates are competitive?
What shipping volume do we need before rates are worth negotiating?
Can we renegotiate before the contract expires?
Why is our actual discount lower than the discount in our contract?
What is a minimum net charge, and why does it matter so much?
Which surcharges can actually be negotiated?
How is this different from a parcel invoice audit?
Is our carrier agreement kept confidential?
What happens if you do not find anything worth pursuing?
Is a parcel shipping consultant worth the fee?
Can you negotiate directly with our carrier, or do we have to?
Guides and tools.
How fuel surcharges are calculated
The index tables, the base fuel is charged on, and FedEx against UPS.
Guide02Fuel surcharge tracker
Compare published FedEx and UPS weekly fuel surcharge percentages by service group and review the index tables used to set them.
Tool03Dimensional weight explained
The formula, the 139 and 166 divisors, rounding, and when packaging beats the divisor.
Guide04DIM divisor
Compare how DIM divisors such as 139 and 166 affect the billable weight of a package.
Tool05Dimensional weight history
Every divisor and scope change since 2007: 194 to 166 to 139, and DIM on every Ground package.
Guide06Peak surcharge calculator
See the FedEx and UPS 2026-27 demand surcharge dates and per-package rates by window, the USPS holiday price adjustment by product, weight and zone, and estimate what the season adds at your volume.
ToolRelated work.
UPS contract negotiation
We review your UPS agreement and shipping history to identify terms worth changing, then negotiate with UPS on your behalf. After the new agreement takes effect, we check your invoices to confirm that the agreed rates and discounts are being applied.
For shippers reviewing their UPS rates and terms02FedEx contract negotiation
Every priced term in the agreement, from base and earned discounts to minimums, DIM, surcharges, fuel, multiweight, returns and international pricing, modeled against your own shipment file so you know what each concession is worth before you sign, then verified on the invoices after.
For shippers negotiating, renewing or reviewing a FedEx agreement03Parcel audit
A parcel invoice audit checks for billing errors and contract compliance. ebb Logic™ reviews service failures, duplicates, address corrections and surcharges, then checks each charge against your discounts, tiers, minimums and accessorial terms. It runs every week, so problems are caught soon after they begin.
For shippers who want their invoices checked against their carrier agreementRequest a free contract review.
Send your agreement for a written review of potential savings and recommended next steps.
Or call 888-356-4421
Free, and no obligation. A written evaluation back inside 48 hours. No fee unless we find documented savings. How we handle your documents
- Your current agreement, any carrier
- One recent invoice, if you have one
- A written evaluation back inside 48 hours

