UPS, FedEx, and Amazon Battle for Fewer E-Commerce Packages

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May 05, 2023

UPS, FedEx, and Amazon Battle for Fewer E-Commerce Packages

Pitney Bowes identified regional carriers as the biggest winners in terms of package volume growth in its most recent Parcel Shipping Index. While 2022 package volumes across the industry dropped 2.2% from the 2021 pandemic peak, regional carriers like AxleHire saw an overall 25% increase in package volume for the year. Most national carriers saw package volumes decline in 2022. FedEx was the biggest loser, experiencing a 4.8% drop. USPS volumes dropped by 3.2%. Amazon was the only major carrier that did not see a decline in volume for the year. Even with declining volumes, revenues across the industry increased by 6.5%. 

Business Insider has detailed coverage of the Pitney Bowes Parcel Shipping Index here.

These numbers highlight two industry trends that are gaining momentum. Ecommerce brands are diversifying their carrier portfolios and are looking to strategically move targeted-market volume from national to regional carriers to provide resiliency and improve service levels. Deloitte says, “Emerging models like independent couriers, crowd-shipping services, and autonomous delivery can be layered into traditional methods to support growth and service performance.” Working with multiple carriers is ‘the new normal’ for many retailers.



Business Insider recently spoke with CEOs of five regional carriers, including AxleHire’s Adam Bryant, about how regional carriers can continue to stand out from the national carriers and defend and grow market share in the current business environment. According to Adam, “We can give every customer we work with a higher level of attention [than the national carriers],” and often at a lower price which will continue to be a key consideration for most retailers.

The second key trend highlighted by the Pitney Bowes survey is that national carriers are looking to grow their revenues on the backs of existing customers. CEOs at FedEx and UPS have been open about their desire to cut back on less profitable services. According to Supply Chain Dive, FedEx Freight recently announced that they are closing 29 locations and furloughing workers. They have saddled customers with surcharges for fuel, residential service, and peak service. In their most recent quarter ending February 28, 2023, FedEx saw an 11% year-over-year decrease in Ground Shipping package volume but an 11% increase in revenue per package. These numbers are good for FedEx but could be better for FedEx customers.

If you’d like to learn more about how AxleHire can provide better levels of attention and service to your business at a competitive price, you can start a conversation with one of our logistics professionals here.