For years, businesses have been at the mercy of the carriers. FedEx and UPS are attempting to bolster their bottom lines with rising shipping costs and a laundry list of surcharges that include, but are not limited to, fuel, peak season, weight, size, and zip code.

But there's a silver lining: the ongoing rivalry between shipping giants FedEx and UPS has sparked a range of discounts for businesses that haven't been eligible for them before.

As the carriers offer discounts, once reserved for large clients, to small and medium-sized businesses, now may be the best time to renegotiate your contract, but you shouldn't do it alone. In this blog post, we'll talk about the external factors influencing UPS and FedEx's season of discounts and how you can benefit from these circumstances.

Discounts from FedEx and UPS: Why now?

It's a strange time for the shipping industry. During the height of COVID, UPS and FedEx saw unprecedented demand levels and had difficulty keeping up the supply. Now, carriers struggle to hit predicted profits, blaming declining demand, increased employee salaries after avoiding a union strike, and the loss of major clients.

Over the past couple of years, you've likely seen the carriers attempt to restore equilibrium with operational closures, mass layoffs, unprecedented rate hikes, location-based surcharges, and fuel surcharges that continue to climb— even after actual fuel rates decline. Without a good shipping alternative, most clients just had to pay the latest surcharge and increased rate.

The carriers previously reserved their most significant discounts for their highest-volume clients. But that's not the case anymore.

On last month's UPS Q2 2024 earnings call, CEO Carol Tomé said, "Pricing architecture of the future gives us the opportunity to use modifiers and price that creates opportunities for value for our customers, as well as value for ourselves."

Based on current carrier behavior, we can expect a continuation of elevated rates and surcharges for those who aren't asking questions. However, savvy shippers aren't paying those premiums. In fact, there are more opportunities than ever to save in this shippers' market.

Are you eligible for UPS and FedEx discounts?

For years, shippers have grappled with rising costs. Fuel surcharges, peak season fees, and general rate increases have steadily eroded profit margins. However, a recent discounting trend by FedEx and UPS has brought some much-needed relief. Discounts once reserved for large companies are now available to small and medium-sized businesses— at least those who know how to negotiate them.

That's where ShipRx comes in. We've spent our entire careers in the shipping industry, first negotiating for the carriers, and now we're using that experience to negotiate for businesses like yours.

We have a 100% success rate in our parcel negotiation services, and we've helped thousands of businesses keep more money in their pockets. Contact us today for a free savings analysis, and let us help you negotiate the best possible rates.

Remember, this shipper-friendly market won't last forever. Act now to maximize your savings.