Surcharge Creep: How Shippers Can Adapt

Navigating Surcharge Creep: How Shippers Can Adapt

While the U.S. parcel delivery market has been rapidly evolving over the last several years, recent shifts are reshaping the industry in ways that demand attention from shippers. As e-commerce continues its steady rise and market competition intensifies, parcel delivery companies are adjusting their strategies to balance competitive pricing while protecting their margin.

Major carriers like UPS and FedEx dominated the carrier landscape coming out of the COVID-19 pandemic when parcel volume surged at unprecedented levels. In the years since, however, the market has shifted in favor of shippers, who now have leverage as Amazon and alternate carriers become increasingly prevalent. Even medium-sized shippers have been able to negotiate favorable discounts in return for committing package volumes to the major shippers. The dynamics of the current shippers' market are discussed in detail in Parcel Delivery Spotlight 1,