FedEx and UPS cease parcel discounts, ‘weaponize’ fuel surcharges: report

Carriers pivot to chasing profitable customers rather than protecting market share

Legacy parcel carriers FedEx and UPS have begun to discontinue commercial discounts, previously offered in response to increased market competition, prioritizing instead high-yield shipments and profitability to better meet Wall Street expectations, according to the TD Cowen/AFS Freight Index published this week.

Businesses are paying more per package shipped with FedEx (NYSE: FDX) and UPS (NYSE: UPS) as the couriers’ ground networks lose volume at the bottom end and replace some of that with express volume as customers trade down in service levels. The shift of cost-conscious shippers to alternative providers with slower, cheaper services is reflected in the ground parcel cost per package reaching a record high of 32% above the index’s 2018 baseline during the second quarter.

FedEx and UPS cease parcel discounts, ‘weaponize’ fuel surcharges: report – FreightWaves

Related Posts

Ad Market Remains Tepid, Expands 4.4% In May

The U.S. ad market improved slightly in May, which expanded 4.4% over the same month a year earlier, according to just refreshed monthly data from Guideline's U.S. Ad Market Tracker.…

Marketing KPIs: February 2025 Trends

After a soft start in January, headwinds persisted for many brands in February. Retailers faced a challenging environment as consumer confidence continued to decline amid ongoing uncertainty surrounding tariffs and the U.S. economy. Overall, sessions rose by 2.32%, but conversion challenges remained, with orders down -9.05% and demand falling -7.6% compared to February 2024. Apparel, outdoor, and specialty brands struggled, while home retailers saw gains in orders and sales. Brands of all sizes are feeling the impact of slowing consumer demand. Consumer confidence is at its lowest level since June 2024, and economic uncertainty is likely to continue. Brands that adjust pricing strategies, strengthen customer engagement, and highlight value will be better equipped to navigate uncertainty and capture opportunities in the coming months.

Creating Community: One Brand at a Time

Along with “storytelling” and “authenticity” the word “community” gets tossed around a lot these days by brands and marketers alike. While all three of these terms, and the sentiments they carry, are often used as empty platitudes or attractive phrases to sprinkle in an ‘About Us’ page, in their best uses they come from a place of sincerity and real consumer ramifications. In a 2021 study from ebbo, ‘community’ was the second highest factor that contributed to customer loyalty after product quality. But what does community mean for a brand? How can it be grown and nurtured? What does it look like? To answer these questions I want to take a look at three different brands each instilling community with their consumers in vastly different ways. Some take place in online chat rooms, others in secret shopping opportunities, and some through in-person engagement. No matter how they approach it, each of these brands takes what people love about their products and their mission and create a space for that to flourish. read more at: https://www.jschmid.com/blog/creating-community/
Back To Top
×Close search
Search