The parcel shipping landscape is evolving quickly, and carriers are no longer content to simply handle anything that comes their way. Instead, carriers are fine-tuning their networks, doubling down on their strengths (perceived or otherwise), and incentivizing the shipments they most covet. For shippers, this creates a more nuanced playing field — one where choosing the right carrier for each parcel requires a deeper understanding of their program and an understanding of potential carrier partners.

Enter 2025. As the industry continues to change, two emerging trends increasingly add shape and definition to the parcel shipping landscape.

First, despite problematic economic headwinds, headlines, and an inflationary environment, e-commerce sales — a key driver of shipping activity — remain fairly robust. The US Department of Commerce estimates that US retail e-commerce sales for the fourth quarter of 2024 amounted to a 9.4% increase over Q4 of last year, despite total retail sales increasing only 3.8% in the same period. Now Q4 is not the same as Q1 or Q2, but the important underlying callout here is that the consumer appetite for online shopping remains strong entering 2025.

At the same time, another pivotal development continues to take shape. Eager to optimize their networks, play off their strengths, and incentive the shipments they want, carriers continue to aggressively modify the cost structure that governs the shipping landscape, most notably by embracing dynamic pricing strategies. Pricing changes are becoming increasingly common

The extent of this effort can already be seen in the significant changes carriers have already introduced this year, among them updates to fuel surcharge tables, new and expanded delivery area surcharges, added fees for overweight or oversized packages, and additional adjustments that dictate when and where various services are best used. In some cases, these changes represent potentially exponential increases in shipping costs for businesses.

Just as importantly, because these efforts reflect each carrier’s efforts to optimize their own network and increase profitability, shippers face an increasingly material reality: Some parcels can be more cost effectively shipped with one carrier, while others are best handled by another. Facing this, more shippers are considering whether to implement a multi-carrier strategy, something which when approached effectively can result in greater flexibility and lower parcel shipping spend.

Despite this, implementing a multi-carrier shipping strategy is not without risks. Nor is a multi-carrier approach the right path for every organization. What then should shippers consider when determining if a multi-carrier shipping strategy is right for them? And more specifically, what do they need to keep in mind when designing a multi-carrier network?

Moving beyond any one carrier, whether it be FedEx, DHL, or UPS, often places shippers in uncharted waters. To ensure success and mitigate the risks involved, shippers are well-served to consider the following best practices for carrier diversification when designing their own multi-carrier network.

Exploration is the operative word.

● Be intentional: Start with a clear objective: What am I looking for in an additional carrier? Since the 2020 global pandemic, the parcel market has become highly fragmented, with niche carriers available for nearly every use case. Focusing on a narrow, high-impact set of evaluation criteria — such as transit times, cost, market coverage, on-time delivery performance, and supply chain resilience — can streamline the process and lead to faster implementation.

● Know Thy Profile: When designing a multi-carrier network it is imperative to first know your shipping profile. Revenue tiers and minimum volume commitments often prevent shippers from diversifying effectively. Before engaging with alternative carriers, review contract terms closely, especially how they align with actual shipping patterns and performance. Be aware of the potential financial impact of falling below a revenue tier or missing a volume threshold required for rebates or incentives and include contractual agreements that reflect these parameters in your contract negotiation strategy.

On the most fundamental level, it is also important to know your shipping vital factors, including total parcel shipping spend, surcharge spend, the average weight of parcels you ship, the average zone you ship to, minimum charges, and, of course, the average cost-per-shipment. All of these factors should be actively tracked and used to determine what an effective multi-carrier network looks like for your organization.

● Start Slow: Adopt a phased approach. Identify specific regions, package profiles, or service levels that can be tested with new carriers. Starting with smaller, low-risk segments helps establish quick wins, build internal confidence, and create a glidepath for broader rollout. Make sure to build in time after the initial start of the program to analyze your success and to identify areas where improvement is needed.

● Leverage Technology: Technology, and the visibility over shipping activity and ability to manage it in real time that today’s platforms deliver, plays a central role in any multi-carrier network. Drawing on powerful modeling technology, shippers can also analyze their historic shipping data to see what an optimal multi-carrier strategy might look like for their business. Modern platforms can also automate carrier selection, surface the lowest-cost option in real time, and keep programs running at peak efficiency. Shippers should also use them to continuously monitor KPIs like on-time performance, cost-per-shipment, and weekly volume — comparing these across all carriers in the network.

Importantly, shippers should also make sure they have tools in place that alert them when carriers unexpectedly make changes. To date in 2025, carriers unveiled a dizzying array of changes. Unlike adjustments in the past that were overtly announced to customers, these cost increases are increasingly made quietly and under the radar, a reality that makes it crucially important for shippers to immediately know when changes that have the potential to materially impact their costs are made.

By keeping these factors in mind, shippers can design a multi-carrier network with the confidence that it will deliver the savings, flexibility, performance and customer satisfaction that results when businesses take steps to proactively align their fulfillment and shipping strategies with each carrier’s unique strengths and capabilities. When approached in this way, a multi-carrier strategy and the network that enables it delivers a win-win for all involved.