BizSugar.com › Finance › How to Reduce Your Shipping Fees

The slow economy spells some unexpected breaks for shippers. Eager to grab bigger shares of a market that has all but stopped growing, FedEx, UPS and DHL will duke it out, negotiating contracts to reduce rates, despite an official 6.9% hike this year. Walk-ins, however, will pay the full fare.

Package delivery services won't trumpet the price concessions, but they're willing to dicker if you know what to ask about. Focus on so-called accessorial charges, says Tim Sailor, principal with Navigo Consulting Group, a firm that negotiates on businesses' behalf to get the best deals with parcel carriers. You can knock off a host of add-ons, such as a 2% or higher fuel surcharge, insurance, fees for residential or out-of-the-way deliveries that generally amount to 10% of package drop-off charges plus extra charges for oversize parcels.