What is a shipping zone?
UPS and FedEx both use zones for each package you send. Shipping contracts are divided into zone pricing and each package is price based on the destination zone. You cannot get away from zones, so investigate what a zone really is and how to determine your zones.
Shipping zones are based on the distance a package travels from origination to the final destination. These distances are formulated in various zones. Since zones are calculated based on where your package originates, make sure you use the zone chart specific to your originating ZIP code.
The zones also change with each service. For example, Ground does not have the same zip code range as Next Day Air.
To get a list of FedEx zones from your zip code, and use the “Get FedEx Zone Locators” function. Just enter your zip code and hit the “Get zone locator.” FedEx will provide a list of all other zip codes and the zone it is located in. A popup window will open that says “Download Rates.” Click on “Download Rates” box. Your FedEx Zone Locator will appear in a PDF file, ready to print.
FedEx SmartPost Zones
FedEx SmartPost is used to ship low-weight residential packages by utilizing the United States Postal Service® for final delivery, FedEx SmartPost can reach every U.S. address. P.O. Boxes, APO and FPO locations. SmartPost does not use assigned zip codes, but instead uses the distance in miles.
FedEx Smart Post zones and rates can be found here.
To get a list of UPS zones from your zip code, go directly to UPS with this link. Enter your zip code in the download zone charts box and hit the “Download” button. UPS will provide a list of all other zip codes and the zone it is located in.
How Distance Affects Fulfillment Costs
One of the biggest mistakes in a contract negotiation is coming to the negotiation table unprepared. Carriers know more about a shipper’s distribution than the shipper in most cases. Know how many packages are delivered in each zone among various weight ranges before you start the process. How many packages each year will receive greater discounts. Contact us if you have more questions, we are happy to help with a free benchmark analysis.