Last year, 23.8 billion parcels were shipped in the US, marking a 4% increase from 2023 and 50% growth since 2019. Consumers rely on parcel deliveries now more than ever, but FedEx and UPS are losing revenue.

How is this possible? We'll talk about who's shipping the uptick of parcels and how you can use the current status of the parcel industry in the US to negotiate a more economical shipping solution with UPS and FedEx.

FedEx and UPS are struggling with decreased demand. If not them, who's responsible for the transportation of these parcels?

FedEx recently lowered its profit expectations for the fiscal year ending May 2025 for a second time. And UPS will reduce its volume of deliveries on Amazon's behalf by more than 50% by the second half of next year to make room for more profitable clients. Both carriers report a loss of revenue due to "soft demand" and have introduced new surcharges to fill the gap.

The experts report 50% growth over the past 5 years, so we know there's demand. Clients just aren't using FedEx and UPS. Instead, online retailers and regional carriers are gaining ground.

Take Walmart, for example. The megastore announced in February that Q4 marked the 11th consecutive quarter in which its online sales grew more than 10% year over year. Walmart's online retail growth rate is four times faster than its overall growth rate, and e-commerce makes up 18% of its total sales. Nearly half of all marketplace orders are delivered by Walmart Fulfillment Services. CFO John David Rainey says, "We've seen improved profitability during this period with efficiencies gained as we densify our delivery routes and with the contributions from newer businesses that are enabled by e-commerce growth."

Walmart isn't alone in fulfilling customer orders. Amazon is responsible for more than a quarter of the US parcel deliveries by volume, with other carriers and retailers such as Target, OnTrac, and GLS delivering almost 10% of parcels in 2024.

By comparison, UPS delivers just over 20% and FedEx just over 14%. Ten years ago, UPS held 57% of the market share, while FedEx held 25%.

Negotiation with UPS and FedEx: A win-win situation

FedEx and UPS want to return to the glory days— high-market share with high-value clients. Forget the heavily discounted deals for delivering Amazon packages. FedEx and UPS want your business, and ShipRx can help negotiate a contract that saves you money.

Our team began their careers working for the major carriers. Now, we use the insight gained negotiating on the carriers' behalf to review contracts, negotiate savings, and track shipments to discover refund possibilities for businesses like yours.

Get in touch today for a free savings analysis and discover how much you can save. Experts expect US parcel volume to increase by 3 billion to reach 26.8 billion by 2027. With no shortage of shipments to fulfill, now is the time to lock in a contract packed with savings.