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It's Time to Reset Your Small Parcel Rates 

Updated: Mar 29


We are in truly unprecedented times in the small package shipping space. 


With base package rates starting above $10 per carton and annual rate increases of 5%-8% every year, the cost to ship parcel has outpaced inflation by 2X in the last 10 years. Since 2016, the cost to ship a package has doubled. However, this year we are witnessing dramatic changes in the international and domestic parcel space that has led to the opportunity of cost rollbacks for the average shipper.

This is a critical moment and every shipper should review their parcel agreements. 

The proverbial tide has gone out on parcel rates - do not get left anchored in the sand because the water is not coming back in the foreseeable future.

You must strategically go get these savings! 



Consumer Spending Patterns 

Since COVID, e-tail spending has leveled off or slowed for many shippers. Small package carriers invested millions in infrastructure expansion to meet demand that is no longer there. These companies are scrambling to fill their trucks and sortation facilities to keep their share of the package volume rather than further shutter operations or report significant declines to investors.

Shifted Volumes from Labor Concerns 

FedEx took on a significant increase in customer accounts ahead of the looming Teamster negotiations this past summer. Once that deal was complete, UPS began to aggressively recover lost accounts with bonus incentives and reduced rates. FedEx is responding, creating a bidding war. 

Amazon Now the Biggest Parcel Carrier 

Amazon small package delivery fleet now handles more packages daily than FedEx or UPS. Their rapid growth and expansion have left the other parcel service providers with less total volume available, creating a void and driving aggressive pricing by the small package transport companies to retain volume.

Increased Delivery Options 

Utilizing effective pickup location and same-day delivery options, many retailers are moving to local fulfillment from their brick-and-mortar locations. The number of BOPA (But Online Pickup Alternative) solutions like @Via.Delivery allows shippers to reduce their costs, add other convenience options, and secure customer packages from theft.

Technology Makes Change Easy 

Technology has enabled greater rate shopping and ease of change. We see shippers regularly change providers in less than three weeks, keeping every parcel shipper on edge. The abundance of capacity and low barriers to change have created the perfect environment for competition.



For over 20 years, we have managed and negotiated some of the largest ground, air, and international volumes in North America. Our deep experience in shipping commercial and residential small package services has given us the knowledge of "what to say" and "how to" techniques to achieve the greatest discounts and incentives for your unique business and shipping profile.

We spend all our time in those intentionally complex contracts of the small parcel world. We know where the hidden costs are in parcel contracts. We will protect your business and help you avoid traps and so-called contractual requirements. We know what's possible and will help you realize it.



This is a crucial moment for your company and the future of your small parcel costs.

At FREIGHT THINK, we have been averaging 22% reduction on contracts re-negotiated within the last 12 months with over 35%+ on contracts that have been in place for more than 12 months.

We prepare a strategic plan of communication tailored to your business profile and offerreal alternatives so that you never have to feel like your negotiation is a bluff. You will have control of the process and confidence in the terms you obtain.



If you have an annual parcel spend of $250k, we will reduce your costs by at least 10% or you owe us nothing. Our compensation is purely based on our level of success. Our incentive is to maximize your savings. 


Contact us today to start your savings. We will set up an NDA, share our references, and get you moving toward shipping savings! 



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