Regional carriers and USPS smell opportunity in the marketplace, and their offerings may be worth a closer look. Despite it being a buyer’s market for parcel shippers lately, FedEx and UPS have been aggressive with their pricing actions related to their 2025 GRIs and several surcharges. This has not gone unnoticed by many shippers who recognize they still hold the balance of power when it comes to negotiating rates.
(You can read about this contradiction and the current state of small parcel shipping here.)
All the changes and aggressive rate increases, especially to UPS SurePost and FedEx Ground Economy, have not gone unnoticed by many FedEx/ UPS competitors either, who rightly see this as an opportunity to steal volume. Many are bringing new services and products to market to provide shippers with more flexible delivery options.
Here are some examples:
Veho recently announced a new service called Premium Economy to increase the ways it competes:
- 2-5 day delivery
- Competitive <1 lb. pricing
- Emphasizes reliability and predictability over speed
Read more here: Introducing Premium Economy: Veho’s leading delivery experience for cost-conscious shippers prioritizing reliability over speed
USPS has announced plans to improve its Ground Advantage program in 2025:
- 2-5 day delivery
- Includes package tracking, focus on reliability over speed
- Competitive pricing, but subject to pricing tiers based on size, shape, and weight
Read more here: Ground Advantage | USPS
USPS plans to launch a Next Day Priority service in 2025:
- Overnight service (utilizing USPS final-mile delivery units)
- Competitive pricing for shippers meeting minimum shipment volume threshold
- Designed for e-commerce sellers
Read more here: INFORMATIONAL: The Postal Service: Delivering More in 2025 | PostalPro
It’s time for shippers who have not already taken a serious look at alternatives to UPS and FedEx to do so. This is the start of a trend that will see more regional carriers continue putting the heat on UPS and FedEx with new service offerings, competitive pricing, and aggressive efforts to win volume. Shippers should know the many viable supply chain solutions beyond UPS and FedEx for their own good!
With change comes opportunity. This means now is a great time to review your carrier agreements, and the experts at TransImpact are here to help. We can model your costs with a new contract with any carrier. It’s an easy way to understand the cost impact of switching carriers or renegotiating with your current ones.
For a no-obligation analysis, email sales-info@transimpact.com.