Why Shippers Can’t Afford to Ignore the Trend
Major carriers like UPS and FedEx are once again rolling out steep peak season surcharges—even as shipping volumes remain stagnant. What was once a justified cost during explosive e-commerce growth is now seen by many as a cash grab in a soft market.
The Problem
Demand is flat. Peak volume has barely grown since 2021, yet carriers continue to add fees. UPS will increase additional handling surcharges $8.25 to $10.80 rising per-package fees across ground and air services.
Carriers are shrinking capacity. Layoffs, buyouts, and downsized operations contradict the justification for surcharges.
Trust is eroding. Analysts warn these repeated increases are driving businesses to regional carriers, Amazon, Walmart, Target, and gig-based delivery networks.
Simply put: the surcharges are no longer about covering costs, they are about padding profits in the face of lost volume.
The Impact on Shippers
Shippers are paying more without getting more.
Competitors are already diversifying into OnTrac, Veho, Jitsu, UniUni, and in-house networks to control costs and maintain flexibility.
By 2027, Amazon, Walmart, and independents are projected to deliver more parcels than FedEx, UPS, and USPS combined if these trends continue.
This shift is accelerating. Retailers are expanding same-day and next-day delivery services at scale, and even food delivery companies like DoorDash are entering the last-mile logistics market. Every surcharge FedEx and UPS impose is another reason for customers to walk away.
What Parcel Shippers Can Do
You don’t have to absorb these hikes. Many shippers leave 10-20% in hidden surcharges and rate structures on the table every year. Even well-negotiated contracts quietly bake in costs that compound over time.
That’s where ebb Logistics comes in. We specialize in:
No-obligation parcel contract analysis to reveal hidden costs.
Market-rate benchmarking to ensure you are not overpaying.
Negotiation leverage with alternative carrier strategies and volume alignment.
The Bottom Line
FedEx and UPS are making up for lost volume by charging their loyal customers more. Don’t let their shrinking networks shrink your profits.
Now is the time to act. Contact ebb Logistics today for a free no-obligation contract analysis, and let us show you where you can save.
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