Transportation companies are feeling the effects of the great recession and some will fail during the next 6 to 12 months. To meet the operational demands of their respective businesses, the small package duopolies (UPS/FedEx) increased base rates in January at a rate approximately three times inflation but that won't be enough to meet the needs of the hundreds of thousands of employees, planes, trucks, salaries, wall street investors, marketing expenses, and other infrastructure costs. Since these carriers have become trusted partners with your organization, I suggest you offer them an additional 10 to 15% increase next year (or whatever you can afford) on top of the annual increase in January 2010. Think of all the benefits to your organization if you start by strengthening the bond with your sales rep and his boss. Your company will either be elevated to "Favored", "Super Favored," or the creme de la creme "Double Secret Super Favored" status and the dedicated staff will surely demonstrate their appreciation in many ways. Who knows, next summer you may even be invited to a barbecue providing you with the opportunity to mingle with friendly carrier employees, their friends and family, and others that you have helped through your generosity and benevolence. 

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Jim LeRose — Founder, LeRose Systems LLC and Principal, Agile NYC Metro, has been a transportation industry consultant for 25 years. Jim's clients have saved millions on transportation costs. Agile has helped companies such as JP Morgan, Audiovox, Intuitive Surgical, Panasonic, Petco and over 1,000 others. Jim welcomes your comments and can be reached atjim.lerose@agile-network.com or Phone # 888.214.1763.