Parcel Carrier Landscape Shifts as UPS and FedEx Pull Back
While UPS and FedEx are streamlining their networks, a growing wave of alternative carriers is actively expanding, reshaping the delivery market in the process.
The Legacy Giants: Restructuring in a Soft Market
UPS is doubling down on automation and consolidation. The company is retrofitting existing facilities, shutting down select sort centers, and cutting around 20,000 jobs, all in an effort to boost efficiency and adapt to falling volumes, including a reduced reliance on Amazon.
FedEx is overhauling its operations by merging Ground and Express networks and scaling back its air capacity. Both companies are laser-focused on trimming per-package costs while still trying to compete on service and price.
The Alternatives: Growing and Gaining Ground
While the giants retrench, others are making aggressive moves:
- USPS: Transitioning to a ground-focused network to support its growing Ground Advantage service, along with a new regional Priority Next Day offering.
- Amazon Shipping: Expanding quietly but steadily, with increasing coverage.
- OnTrac: Added Sunday delivery and expanded into the Midwest in 2024.
- Veho: Launched in Louisville and Richmond in early 2025; introduced a 2–5 day Premium Economy service.
- UniUni: Targeting 70% U.S. coverage by Q3 with strong middle-mile capabilities.
- Jitsu: Now operating in key Midwest cities, reaching 122 million consumers.
- SpeedX: Extended 1–2 day delivery to 175 million people across 2,000 more ZIP codes.
What Comes Next?
The industry is entering uncertain, but promising, territory. Key questions remain:
- Will these new carriers be able to scale profitably?
- Can USPS go beyond SMBs and compete more broadly?
- Will UPS and FedEx successfully reduce costs without sacrificing service?
- When will Amazon Shipping begin making a real impact?
One Clear Outcome
Shippers are poised to benefit from greater competition, more delivery choices, and sustained pricing pressure.
What Should Parcel Shippers Do Next?
With the carrier landscape shifting rapidly, now is the time to evaluate your shipping strategy:
- Assess current carrier performance and cost structure.
- Explore emerging regional and national carrier options to reduce risk and increase flexibility.
- Revisit rate agreements to ensure competitive pricing in a soft market.
- Audit invoices to uncover and eliminate unnecessary fees or incorrect surcharges.
- Develop contingency plans to navigate service disruptions or volume shifts.
ebb Logistics helps you make sense of it all, through carrier benchmarking, contract optimization, and strategic network modeling. In a time of transition, let us help you move forward with confidence.
Contact Us Today!