Breaking

Parcel Shippers Abandon Single-Carrier Model as Surcharge Pressure Mounts

Major retailers are diversifying their parcel carrier networks to combat escalating delivery costs. The shift moves away from the traditional single-carrier strategy that dominated the industry for years. Tractor Supply Co., operating nearly 2,500 locations across 49 states, now distributes shipments among multiple parcel carriers, gig delivery networks and internal fleet resources. This reflects broader industry frustration with pricing pressures. An industry survey found that 88% of delivery operators report expenses are growing as fast as or faster than revenue. Median last-mile costs climbed 12% for the second consecutive year. Carriers increasingly deploy variable surcharges alongside annual rate increases, targeting oversized packages and adding handling fees. By fragmenting volume across providers, shippers gain flexibility to redirect packages away from carriers implementing steep surcharges, enabling early-year cost containment. Software platforms managing multi-carrier logistics have eased this operational transition.