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Shipping guides

How parcel pricing works

Understand the pieces of a parcel shipping price and compare carrier offers using your actual shipment mix.

Start with the shipment

A parcel price starts with the service you choose, where the package travels, and its billable weight. Dimensions, delivery address, packaging, and your carrier agreement can change the final amount. A headline discount describes only part of that calculation.

Build your comparison from shipment records. Keep origin and destination postal codes, actual weight, package dimensions, service, and the date shipped together. These fields let you compare the same package across services instead of comparing unrelated rate examples.

Separate the components

Read a carrier invoice as a stack of charges: transportation, applicable discounts and minimums, additional fees, and fuel. International shipments can also include duties, taxes, and clearance charges. Those amounts have different rules and should remain separate in your analysis.

Ask which items your agreement discounts and which items stay at the published amount. A transportation discount does not automatically reduce residential, delivery area, handling, or peak charges.

Compare the total for your business

Use a representative shipment sample that includes your common destinations and package sizes. Price each shipment under the candidate agreement, then total the results. Averages hide the effect of a small group of large or remote deliveries.

Check delivery requirements alongside cost. A lower price is useful only when the service meets the customer promise, coverage, pickup needs, and handling requirements. Confirm the applicable rate guide and agreement before changing your routing.

Make the comparison repeatable

Keep the shipment sample and the assumptions you used. When a carrier announces new rates or surcharges, rerun the same sample and isolate the changed component. This gives your team a concrete explanation of the cost difference.

Kadima can review the agreement and invoice together. Start with the rate calculator for an initial comparison, or upload invoices when you need a line-by-line assessment.

Official references

An educational reference prepared by Kadima Logistics. Examples explain the concept. Consult the applicable service guide and agreement for your shipment.

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