When negotiating carrier contracts it’s important to understand different package types. Pricing agreements specify service discounts and earned discounts by package type. Often, only the service type or package type used most frequently by the shipper is included in the pricing agreement. This leaves any shipments billed with a service type or package type not listed on the pricing agreement completely undiscounted. Undiscounted shipments translate to lost dollars for your business.
Breaking down each package type for FedEx billing
Outlined below are the abbreviations and descriptions for the different package types for FedEx billing. Do the abbreviations look familiar to you? Grab your FedEx pricing agreement and give it a good review. Are the package types you use included in your discounts or has FedEx overlooked some of the package types you use?
| OB | Outbound prepaid packages picked up at the customer’s facility |
| IB |
Inbound collect packages received at the customer’s facility |
| 3P | Packages shipped for the customer by a third party |
| RB | Packages shipped by the customer and billed to the recipient |
| PRP | Package Returns Packages received at the customer’s facility |
| ZJ | Zone jump packages dropped into designated hub(s) and terminal(s) |
| RM | Return Manager packages received at the customer’s facility |
| TB | Canada to U.S. Trans-Border packages delivered to a U.S. facility |
Package types in pricing agreements
Displayed below are FedEx earned discounts on multiweight shipments by package type. Package type abbreviations included within the earned discount pricing model are subject to discounts according to the schedule detailed therein. This means when it comes to FedEx Ground Domestic OB, IB, RB, and 3P are included within the earned discount.
Pricing agreements should include all of the package types used, regardless of frequency. No shipment billed to your account should be undiscounted, ever. In the example below, this shipper has minimum package charge categorized by package types 3P, OB, and RB.
Read more: Understanding minimum charges in carrier agreements
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Do you want to see if discounts are being applied fairly to your account? Share A Refund parcel consultants perform a free analysis on your shipping profile. Our pricing experts leverage experience and technology to provide the visibility needed to help businesses attain best-in-class small parcel rates. A high-level assessment of your UPS and FedEx shipment profile and pricing helps the team to determine what opportunities exist for making money-saving improvements to your carrier agreements.
Share A Refund support when you need it
Share A Refund supplies ongoing support to assist you throughout your UPS or FedEx negotiation process. Our team complements your efforts by equipping you with the data necessary to negotiate with confidence. Once the adjusted agreement is finalized, Share A Refund will ensure FedEx or UPS is adhering to their side of the bargain. Our contract compliance team makes sure no discount or refund is overlooked. Prior to any meetings or conversations, make sure to reach out to our dedicated consultants to prepare in advance for any discussions with your carrier. Share A Refund works to save you the most money on shipping.
