Your Parcel Rate Is Rising Again — Here Is Your Leverage

Shippers relying on a single national carrier are likely overpaying and losing negotiating leverage. Alternative carriers are no longer optional, but provide a core lever for cost, service, and margin protection. National-carrier rate hikes, stacking surcharges, and a fast-maturing field of regional and tech-enabled carriers have flipped the leverage to shippers — but the window to act is open now, not indefinitely.

Why Alternative Carriers Matter Now

Market Conditions — Why Introduce an Alternative Carrier Now?

Escalating rates and stacking surcharges. UPS and FedEx have posted a 5.9% general rate increase for three straight years, but new dimensional rules, higher Additional Handling and Oversize fees, and frequent fuel-surcharge adjustments push many shippers’ effective increase into the 8%-12% range.
Capacity variability and service trade-offs. Legacy carriers are rationalizing networks — closing facilities and trimming volume — which can mean less standard-parcel capacity, costly seasonal surcharges, and higher pricing
Single-carrier strategies reduce leverage. Integrating an alternative carrier provides ongoing leverage and creates visible cost differentials. Diversification can materially improve EBITDA and peak-season margins.
Maturing regional and tech-enabled networks. The Big Three’s grip is loosening fast — their share of U.S. parcel volume has fallen from 85% before the COVID-19 pandemic to 61% in 2025, while alternative carriers posted the market’s largest yearly volume gain and now compete on reliability and coverage, not just price.
Favorable pricing. Selectively shifting a portion of parcel volume to alternative carriers capitalizes on targeted regional pricing and may unlock significant savings. This diversifies shipping networks, reduces single-carrier dependency, and ultimately maintains maximum leverage with the primary carrier.

Amazon now leads U.S. parcel volume; the Big Three’s share has fallen from 85% before the COVID-19 pandemic to 61% in 2025.

Source: ShipMatrix U.S. Domestic Parcel Market Report (2025 data, released Mar 2026). “All other carriers” derived from reported carrier totals.

What ‘Alternative Carriers’ Means

Regional/super-regional carriers (e.g., OnTrac, LSO, GLS) own dense zones and often beat national transit times within their footprint.
Gig-enabled and hybrid networks (e.g., Veho, Better Trucks, Uber Direct, DoorDash Drive) flex up and down with demand.
Consolidators and cross-border specialists (e.g., UniUni) aggregate volume and inject parcels into the postal or regional last mile.
The technology layer – APIs, real-time tracking, address validation, and AI routing are what make multi-carrier viable at scale, integrating with WMS / TMS / e-commerce platforms.

The base 5.9% Global Reporting Initiative (GRI) increase understates the actual cost shippers face in 2026.

Source: Ankura analysis; carrier 2026 GRI & surcharge schedules. Effective increase varies by package & lane.

As legacy carriers lose share, a diversified carrier mix is becoming a core advantage, not a fringe experiment.

U.S. Parcel Revenue Market Share – 2025

Source: ShipMatrix U.S. Domestic Parcel Market Report (2025 data, released Mar 2026); total market $196 billion. “All other carriers” derived from reported totals.

The Peak-Season Surcharge Trap — And the Way Around It

Peak demand surcharges from the national carriers run from late September to mid-January and apply on top of every other fee. For a residential-heavy direct-to-consumer (DTC) brand, peak surcharges alone add significant cost to a single season’s invoice. Many alternative carriers charge little or no peak surcharge — shifting even part of your Q4 volume can protect peak season margin.

Leading alternative carriers now reach most U.S. shoppers.

Approx. coverage per carrier disclosures & Ankura analysis, 2025-26.

Profiles of Leading Alternative Carrier Options

OnTrac — The Largest Alternative Carrier Network

OnTrac has evolved from a Western regional into a coast-to-coast e-commerce carrier reaching roughly 75% of U.S. shoppers across 35 states and Washington, DC, with seven-day-a-week operations. Domestic volume has grown sharply as shippers seek relief from national-carrier pricing. New OnTrac Express (air-assisted) and Ground Essentials (deferred) services widen the menu, with claimed savings up to 30% and fewer surcharges versus national economy.

Best For: National e-commerce shippers wanting a single lower-cost alternative with broad reach.

Watch: Long-haul middle-mile is still maturing versus the Big Three.

Veho — Tech-Forward, Experience-Led Delivery

Veho is among the fastest-growing alternative platforms, reaching approximately 50% of the U.S. population across over 60 markets and serving brands such as Macy’s, Sephora, and Lululemon plus 3PLs. Its MaestroAI platform optimizes routing, and its newer FlexSave option trades a slightly wider delivery window for cost savings. Veho emphasizes branded tracking, returns, and a premium consumer experience.

Best For: DTC and premium brands prioritizing customer experience and data.

Watch: Coverage is metro-focused and still expanding nationally. Gig workforce may struggle to serve large, campus-based institutions.

LSO (Lone Star Overnight) — The Southwest Super-Regional

LSO is the dominant regional carrier across the South and Southwest, covering 100% of Texas ZIP codes and large shares of neighboring states — roughly 13% of the U.S. population, or approximately 43 million consumers. Its direct-route model means fewer touches and faster intra-region transit, with pricing the company positions substantially below national carriers and simpler, lower peak-season costs.

Best For: Shippers with dense Texas/Southwest demand.

Watch: Outside its footprint you will need partners for national coverage.

Also Worth Evaluating: Better Trucks (Midwest/Southeast, gig-hybrid, Uber Freight is a minority backer), UniUni (cross-border and consolidation, approximately 60% of U.S. reach), GLS US (Western regional), and on-demand gig networks such as Uber Direct and DoorDash Drive for same-day lanes.

Comparison at a Glance

Carrier	Model	Approx. U.S. Reach	Core Strength	Best Fit
OnTrac	Regional → national	~75% of shoppers	Coast-to-coast low cost, 7-day ops	National e-commerce
Veho	Gig / tech-enabled	~38% of population	CX, data, branded delivery	Premium DTC brands
LSO	Super-regional	~13% (Texas core)	Fast direct routes, low peak fees	Southwest density
Better Trucks	Gig-hybrid	17+ states	Flexible capacity, speed	Mid-size regional DTC
UniUni	Consolidator	~60% of population	Cross-border, low cost	Marketplace / import

Reach figures per carrier disclosures and Ankura analysis, 2025-2026; footprints expand frequently.

Our Experience: What Works, What Does Not, and Who Benefits

Case Study: National Apparel Brand

Profile: A growing DTC and B2B apparel company shipping approximately two million parcels per year to residential and commercial addresses in all 50 states exclusively through a single national carrier.

Problem: Year-over-year effective rate increases well above the base GRI, increasing delivery area surcharge (DAS), residential and commercial surcharges, and onerous peak season surcharges were impacting costs. The company had little leverage at contract renewal because 100% of its volume sat with one carrier and splitting volume would reduce tier-based discount thresholds.

Approach: Ankura evaluated charges by zone, weight, surcharge type, and forecasted customer growth. Based on that data, we ran a competitive rebid mid-contract, introducing two additional carriers.

Outcome: Achieved double-digit savings on segments of business well-suited to the alternative carrier’s footprint and delivery model, and high-single-digit savings overall. The company’s TMS was programmed to optimize carrier selection based on rates and service levels, while directing shipments to the alternative carrier well-suited to their network and delivery model.

Who Benefits Most?

High residential/e-commerce volume paying significant residential surcharges.
Shippers with predictable lanes, where a regional carrier’s direct routes win on cost and service level.
Brands facing heavy peak-season surcharges that can shift Q4 volume.
Organizations with WMS/TMS able to support multi-carrier rate-shopping.

What to Watch Out For

Underestimating integration complexity – Labels, tracking, returns, and billing all need to work cleanly across carriers.
Overlooking coverage and capability gaps – Regional coverage is only the starting point — carriers must also be assessed on their ability to meet service levels across customer segments and geographies.
Scaling before testing – Validate on-time performance and exception handling on a controlled slice of volume first.

Opportunities for Parcel Shippers

Ankura estimates the window to capitalize on today’s competitive intensity is open now — but will narrow as the market reprices. Shippers should move to:

Rebid contracts and introduce alternative carriers for a portion of last-mile volume.
Enter fact-based negotiations with full visibility into rates, minimums, and surcharges.
Pilot alternative carriers on defined lanes to create competitive tension and cut cost.
Realign fulfillment — shipping nodes, package sizes, and mode selection — to meet consumer expectations cost-effectively.
Selectively route parcels – Apply real-time and/or rules-based routing to leverage alternative carriers for specific ZIPs, package sizes and weights, and service levels to drive savings.

Clients typically achieve savings in the range of 8% to 15% within the first 90 days of integration with minimal implementation costs. Ankura’s rapid diagnostic identifies immediate opportunities and defines the roadmap.

Ankura Performance Improvement Fundamentals

Ankura’s Performance Improvement team has a proven track record of executing strategic plans that drive sustainable results — maximizing EBITDA, cash flow, and shareholder value. Our distribution and logistics experts collaborate with clients to streamline inbound and outbound logistics and deliver cost-effective solutions across transportation modes, shipping rates, and on-time delivery. We will support negotiations to achieve results based on our market insights and your specific requirements.

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^{© Copyright 2026. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC, its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.}