Not All Carriers Are Created Equal — Especially Heading Into Q4

Why Parcel Carrier Performance Matters in Q4

If you're still choosing parcel carriers based on habit or gut instinct, you may be leaving both money and operational efficiency on the table. As we enter the final quarter of 2025, the stakes for contract negotiation and carrier performance are higher than ever.

Data tracking isn’t just helpful anymore. It’s essential. It gives you the clarity to separate top performers from weak links, helping your logistics function like a well-oiled machine.

What to Track: Metrics That Matter

Start with the basics like on-time delivery, cost per parcel, and customer satisfaction. But for the remainder of 2025, go deeper:

• Claims frequency and damage rate — Carriers with fewer damaged packages reduce your loss exposure.

• Invoice accuracy and surcharge patterns — Frequent billing surprises are red flags for weak contracts.

• Service guarantee claim success — How often does your carrier actually honor its guarantees?

• Drayage and handoff performance — For shippers using ports or regional hubs, how smoothly does the first mile integrate?

A recent study from Supply & Demand Chain Executive found that cost visibility and delivery consistency remain two of the biggest challenges in the parcel space, especially for last-mile execution.

How to Use the Data

Use what you uncover to make smarter, faster decisions:

• Allocate more volume to high-performing carriers.

• Renegotiate contracts with clear performance thresholds.

• Introduce incentive structures that reward consistency.

• Test new carriers with a portion of volume to keep leverage and comparison points.

Logistics Management’s 2025 Parcel Express Roundtable highlighted that shippers are shifting away from long-standing habits. Many are now blending fixed contracts with more agile, data-driven strategies. (Source)

Why This Matters Right Now

• Carrier flexibility is shrinking. FedEx, UPS, and Amazon have all made structural changes this year to prioritize profitability over volume. This reduces room for negotiation late in the year.

• Peak season surcharges are active. If you didn’t plan ahead for October through December, you're likely already paying for it.

• Surcharges are driving more cost than base rates. Many companies focus on the General Rate Increase, but the real margin killers are often hidden in fees.

Transportation Insight's 2025 Peak Season Guide confirms that residential, AHS, and additional handling surcharges have grown by double digits year-over-year. These outpace even the 5.9 percent base GRI most shippers planned for.

When your carriers perform well, your customers notice. Your finance team notices too. And when they don’t perform, data gives you the receipts to do something about it.

Tracking parcel carrier performance is no longer optional—it’s the foundation for smarter contract negotiations and cost control heading into Q4.

Freight Think helps shippers make data actionable, not overwhelming. Let’s talk strategy.