Stay Up to Date
We stay on top of parcel carrier news as part of our due diligence to our customers and partners. Being aware of the challenges faced by and solutions created by parcel carriers allows us to better serve our community, and we often share articles and resources around this unique industry niche.
Carrier Highlights in the News
What is a Parcel Carrier?
The generally accepted definition of a parcel carrier is a provider that delivers small packages to commercial and residential addresses. As with most businesses, parcel carrier competitors vary in location, speed, and service offerings, making it important to strategically analyze which parcel carrier is most suited to advantage your parcel network.
A national parcel carrier is just that – a parcel carrier that delivers nationwide, such as FedEx, UPS, or USPS. Typically these carriers are selected due to the vastness and heavy resources-enabled nature of their supply chains. They have proven methods for systematically delivering and tracking small packages across the U.S. at competitive pricing.
The Big 2
When generally referring to parcel carriers, the assumption is that the largest two U.S. national carriers are in mind: FedEx and UPS. These are the Big 2. As mentioned above, FedEx and UPS bring their own individual strengths and challenges – deciding which is best to serve your parcel network will vary depending on your own unique parcel network and needs.
A regional carrier is a parcel carrier that delivers small packages to defined regional territories, sometimes as large as multiple states or as small as precise cities. Just like national carrier, regional carriers vary in their size and service offerings. Regional carriers are often perceived to be a more personalized and timely approach to parcel shipping, though they are not always the most cost-effective providers. Still, regional carriers bring unique advantages to the regions they serve.
Today, many parcel shippers elect to combine some semblance of a national carrier and regional carrier within their parcel network, especially as One-Day, Same-Day, and even Weekend delivery have become more important to customers.
How COVID-19 is Affecting the Parcel Industry
Follow this page for weekly FedEx, UPS, and USPS updates, as well as parcel industry observations related to COVID-19.
INFOGRAPHIC: How COVID-19 is Affecting the Parcel Industry
Novel coronavirus (COVID-19) has impacted the global supply chain, disrupting industries around the world. Just like their customers, carriers are not immune to the negative impacts of COVID-19.
UPS Execs Refer to 2019 as a “Pivot Point” During Q4 Earnings Call
The tone of the UPS 4Q18 earnings call was uniformly upbeat as strong metrics were revealed one after another. Volume, revenues, earnings per share, and operating margins all went up in the fourth quarter. Comments around peak season performance were far more cheerful than last year as well.
Getting Ready for 2019 GRI: How to Mitigate Cost Increases
This is the time of year that shippers are often bracing for the blow of annual rate increases. Usually in the late third or early fourth quarter, parcel carriers will announce their annual rate and surcharge increases. With the growth in e-commerce, parcel is becoming a larger expenditure for companies. According to GMT’s 2018 Benchmark Report, 87% of shippers expect 2018 parcel rates to increase at a similar or higher pace as total transport costs year-over-year.
What a Pain in the Accessorial: How to Best Evaluate and Anticipate the 2018 Surcharge Increases
We live in a parcel world where accessorial increases can be announced at any time of the year and have huge impacts on budgets. Accessorial charges account for anywhere from five to 30% of our clients’ total parcel spend, and this proportion is rising. On top of trying to accurately forecast resource needs due to volume growth and system changes within an organization, accessorial increases add a huge layer of complexity and unpredictability that can lead to multiplied costs overnight.
Leading Insights From GMT's Annual Parcel Benchmark Report
GMT's own Director of Operations, D. Aaron Guild, and distinguished faculty fellow from UT GSCI, John Lebowitz present takeaways and insights from our 2020 Benchmark Report.