The small package experts at TransImpact are proud to publish our annual analysis comparing the GRI announcements from FedEx and UPS. The main goal of the report is to identify where key areas of costs differ by carrier, so that savvy shippers can develop carrier strategies tailored to their business needs and minimize the cost impact of the GRIs on their bottom line.
Highlights from TransImpact’s 2024 GRI Comparison Report include:
- In 2024, most shippers will find that FedEx is slightly cheaper on domestic services overall. However, UPS is less expensive for international shipping for most services and regions.
- The overall cost advantage that FedEx has offered companies compared to UPS in the past is smaller, generally speaking.
- The two carriers are now aligned on pricing more than ever, with most changes in 2024 following the trend from past years. In other words, there are important details to understand but no big surprises.
- FedEx and UPS are fighting for business to offset demand and volume declines. Since pricing is so similar right now, it suggests the carriers may need other levers to generate revenue. A “Price War” in 2024 is a real possibility, the start of which has already been seen by companies that have renegotiated their contracts in late 2023.
If you are looking for a short answer about which carrier is less expensive, the answer is FedEx. But that only applies to the average parcel shipper — which you are definitely not.
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