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Shipping Wars

Everyone knows that business runs in cycles. up then down, too much work than not enough work, from the phones have been ringing off the hook to I don't think this phone has rang all week! July and August are traditionally slow months in logistics, the calm before the storm of the logistics capacity crunch for retailers gearing up for the holidays.

During our slow time I decided to shop our packing and shipping services on UShip, an online marketplace for shippers and carriers where carriers bid to ship items for less. You might have seen their show on TV called "Shipping Wars".

I posted a number of bids on providing packaging and shipping services from the Phoenix Metro area to all parts of the country and internationally. We won two bids fairly quickly and have already started working on the packaging and shipping for a bookcase and for the other customer we are packing and shipping a desk.

My observation so far is that most people who post on UShip have improbable expectations like I have a one bedroom apartment, no furniture just boxes and I need to move to New York I'm looking to do so for $100. The gas to get to New York from Phoenix is more than $100 so why would anyone do this job?

I find that there are many freight brokers on the site, many of whom outbid us to the get the job. Its so funny because they all think the job is just shipping. For example, I bid $511 to pack and ship desk and chair, In my bid I stated this included pick up, shrink wrap, boxing, palletizing and banding for safe transport and shipping. Some broker bid $499 and the customer chose them.

A few days later I saw the Desk and Chair listed again, The explanation was that the shipper and the carrier could not reach an agreement because the items needed to be boxed and packaged before the shipping could take place. Hello?

This has happened so many times, people will take the lowest bid and not realize that they need more than just a truck. I always let the shipper know "We are a professional packing and shipping company located here in Phoenix" maybe you should pay $12 more and have this done right (packing and shipping) then deal with the yahoo sitting on his couch in Ohio just trying to make a few bucks with his shipping rates.

I don't consider this a "shipping war" its more like a shipping conflict with the conflict being people need to understand that price correlates to the service. I know the customers we have gotten are happy with our service and price and they know they got the whole package and that their shipment is taken care of from pickup to delivery. For everyone else all I can say is you get what you pay for and when your item is damaged because of insufficient packaging all I can say is Ship Happens!

  

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