r/supplychain•
ybur011

Best timing to renegotiate shipping rates with FedEx or UPS

Knowing when to renegotiate shipping rates matters almost as much as the negotiation itself

The optimal windows are right after the annual General Rate Increase announcement which usually drops in late Q3 for the following year, and right before a contract renewal date when the carrier is most motivated to retain the account

Outside of those windows the leverage drops significantly because the carrier has less incentive to make concessions midcycle

Volume changes also create renegotiation opportunities, if a shipper's volume has increased meaningfully since the last contract was signed, the original rate tiers may no longer reflect the best available pricing

Posted Jun 27, 2026, 7:22 AM UTC

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