Oberlin, Ohio May 8, 2025 (Issuewire.com) - The parcel shipping landscape is evolving fast in 2025. Although shipment volumes across the U.S. remain relatively stable, many companies are encountering unexpected cost increases. While general rate increases (GRIs) from carriers like FedEx and UPS are well-publicized, these aren’t the only areas where businesses are paying more.
Behind the scenes, many of the most significant cost hikes are emerging from lesser-known changes, such as adjusted surcharges, service restructuring, and fees that don’t show up in a headline announcement.
Meanwhile, alternatives like regional carriers and the U.S. Postal Service (USPS) are becoming increasingly competitive, especially for cost-conscious organizations.
TransImpact’s newest Parcel Market Report breaks down the root causes of these pricing shifts and shares strategic approaches for staying competitive.
Stable Volume, But Rising Expenses
Although parcel shipment volume in the U.S. nudged up slightly, reaching 21.7 billion packages from last year’s 21.5 billion, the industry’s revenue dropped by 0.3%. This disconnect reveals that carriers are boosting profitability through pricing tactics rather than volume growth.
Parcel Industry Metrics – 2025 Snapshot
Metric
Value
Total U.S. Parcel Volume
21.7 billion
Year-over-Year Revenue Change
-0.3%
FedEx Express Volume
-1%
FedEx Ground Economy Volume
-15%
UPS Domestic Revenue (Q4 2024)
-7.3%
UPS Operating Profit (Q4 2024)
-22.5%
GRIs vs. Reality: The Real Impact on Your Budget
Despite official announcements of a 5.9% general rate increase from both FedEx and UPS, the actual cost impact for many shippers is significantly higher. Businesses report seeing increases in the 7%–8% range once surcharges and specific lane charges are accounted for.
2025 Carrier Pricing Overview
Carrier
Official GRI
Estimated Real-World Increase
UPS
5.9%
~7.3%
FedEx
5.9%
~7.5%
These hidden increases are most concentrated in areas like oversized shipments, rural zones, and high-traffic delivery corridors—segments where many businesses rely most heavily on parcel services.
Surcharges: The Stealthy Price Drivers
In 2025, surcharge-related fees will become the leading contributor to rising shipping costs. Key surcharges such as Additional Handling and Large Package Fees have surged by 27%, affecting both major carriers equally.
2025 Surcharge Increases
Surcharge Type
FedEx
UPS
Additional Handling
+27%
+27%
Large Package
+27%
+27%
Average Surcharge Increase
+12.4%
+13.6%
These charges are applied automatically and often go unnoticed until they begin to impact the bottom line, particularly for businesses shipping irregularly shaped or dimensionally large parcels.
USPS and Regional Carriers: Viable and Growing Options
As national carriers push up prices, regional shipping companies and USPS are offering consistent and transparent alternatives. For businesses that ship primarily within specific regions or handle residential deliveries, these options can deliver substantial savings.
USPS Commercial Rate Changes (2025)
- Priority Mail: +3.2%
- Ground Advantage: +3.9%
These increases remain far below those of private carriers and are easier to predict.
Regional Carrier Market Insights
- Annual revenue reached $5.6 billion in 2023
- 32.5% year-over-year growth
- Now comprise ~3% of the total parcel market share
Regional and hybrid carriers are thriving, especially in short-haul networks, and offer strategic leverage when renegotiating with larger carriers.
Want to know if regional carriers could save you money? Use TransImpact’s parcel analytics platform to run the numbers.
3 Ways Shippers Are Regaining Control in 2025
The best shippers aren’t just reacting to rate changes—they’re actively improving how they manage parcel costs. Here's how:
1. Scrutinize Your Carrier Contracts
Review every clause carefully, especially around:
- Minimum charges
- DIM weight calculations
- Fee escalation triggers
- Termination terms
Optimizing contract language can lead to considerable savings. TransImpact’s experts specialize in modeling and renegotiating terms that work for your bottom line.
2. Invest in Analytics and Automation
Use technology to:
- Uncover inefficient packaging setups
- Forecast surcharge exposure
- Compare shipping options across carriers
A tech-first approach replaces guesswork with data-backed decisions. Book a demo to see what inefficiencies are hiding in your current operation.
3. Expand Your Carrier Strategy
Allocating even 10–20% of volume to regional providers or USPS can:
- Lower zone-based delivery expenses
- Strengthen negotiating power
- Reduce service disruptions during peak periods
Strategy is the New Standard
With parcel shipping becoming more complex each year, businesses can no longer afford to treat it as a routine operation. Proactive planning, deeper data analysis, and smarter carrier diversification are essential to staying ahead.
In 2025, the winners will be those who adapt, not those who absorb rising costs without question.
Explore More Resources
- UPS 2025 Daily Rates Guide
- FedEx 2025 Rate and Service Guide
- USPS Commercial Rate Sheet – Notice 123
- TransImpact: Parcel Market Report – Part 1
- TransImpact: Parcel Market Report – Part 2
- TransImpact: Parcel Market Report – Part 3
Media Contact
TransImpact karishma.shikalgar@transimpact.com (+1) 252-764-2885 https://transimpact.com/
