Debunking Myths: Essential Carrier Changes and Shipping Strategies for 2025

SendTech Staff Pitney Bowes
03/17/2025 Office

Fact vs. Fiction: Making Sense of Carrier Changes in 2025

The parcel shipping landscape is constantly shifting, and with it comes a growing number of myths and misconceptions about carrier rate increases, shipping strategies, and the role of technology in managing costs. In our recent webinar, Fact vs. Fiction: Making Sense of Carrier Changes, we dove into the key trends shaping the industry and debunked some of the most common myths that shippers face in 2025. Let’s explore the facts and unravel the fiction behind these changes.

The Truth About Carrier Rate Increases

FICTION: A 5.9% increase is the full story.

FACT: One of the most discussed topics in shipping is the annual general rate increase (GRI) announced by the "Big Four"—Amazon, USPS®, UPS®, and FedEx®. While many businesses brace for what they expect to be a 5.9% increase, the reality often looks different.

The true cost increases experienced by shippers are often higher, depending on shipping behavior and package characteristics. Many businesses report seeing rate hikes of 7% or more, especially when using slower, more economical services like two-day shipping or ground shipping. Furthermore, shipping surcharges —such as residential delivery fees, fuel surcharges, and delivery area surcharges—are often the silent drivers behind increased costs, inflating the overall shipping budget.

While it’s easy to pin the blame on the GRI, the hidden costs like surcharges and new regulatory fees play a significant role in the overall price increases businesses face. Staying informed and analyzing shipping trends is crucial to controlling these rising expenses.

USPS: Not Just for Lightweight Packages

FICTION: USPS is only for small, lightweight packages.

FACT: A common misconception is that USPS is only a viable option for lightweight shipments. However, this isn’t true in 2025. Services like USPS Ground Advantage™ and Priority Mail® cubic pricing are now available for packages up to 70 pounds, making USPS a competitive option for heavier shipments as well.

With pricing determined by package size rather than weight, USPS cubic pricing can save businesses a substantial amount on shipping costs. An 8-pound package shipped through Priority Mail cubic pricing, for example, could be 53% cheaper than standard rates.

By reevaluating USPS as part of your shipping strategy, businesses can unlock significant savings without sacrificing delivery speed or tracking capabilities.

UPS SurePost® Changes: What’s the Real Impact?

FICTION: UPS SurePost is remaining unchanged in 2025.

FACT: Recently, UPS announced significant changes to its SurePost service, which was once a hybrid of UPS and USPS handling the last-mile delivery. Starting in 2025, UPS will take full control of the deliveries, speeding up transit times but also increasing pricing by an average of 9.9%. Additionally, SurePost will no longer support PO Box, APO, or FPO addresses.

With the new changes, businesses reliant on SurePost for cost-effective delivery may need to explore alternative solutions like USPS Ground Advantage for certain destinations.

This price increase calls attention to the importance of negotiating carrier rates. By utilizing platforms like Pitney Bowes, businesses can unlock savings up to 83% off retail rates, without the need for volume commitments or complex account setups.

The Myth of Single-Carrier Shipping

FICTION: A single carrier offers the best rates.

FACT: Many businesses still believe that working with a single carrier guarantees the best rates. This is especially true for those who negotiate bulk discounts with a sole carrier. However, relying on one carrier exposes businesses to unnecessary risks, especially with the unpredictability in the carrier marketplace.

A multicarrier strategy provides flexibility and cost savings, helping businesses take advantage of competitive pricing from multiple carriers. Regional carriers, in particular, are gaining traction as viable alternatives to national carriers, offering faster delivery times and lower rates in specific geographic areas. By diversifying shipping providers, businesses can find the most cost-effective option for each shipment.

The Evolving Nature of the Carrier Marketplace

FICTION: The carrier marketplace is stable and predictable.

FACT: The carrier landscape is anything but predictable. In fact, as David Bilodeau humorously pointed out during the webinar, “The only constant in the carrier marketplace is change.” Rate hikes, new regulations, and unpredictable shifts in the market make it difficult for businesses to plan shipping strategies with certainty.

From random rate hikes to unexpected service changes, businesses must stay agile and proactive to adapt to the evolving landscape. Technologies that automate shipping decisions and integrate multiple carriers are essential for keeping up with constant changes.

Example: USPS recently reclassified rural ZIP codes, removing them from discounted programs. UPS SurePost raised prices by 9–10%. Such changes can significantly impact businesses relying on certain services to minimize shipping costs.

Regional Carriers: A Competitive Edge for 2025

FICTION: Only national carriers offer reliable shipping options.

FACT: While national carriers like UPS, FedEx, and USPS dominate the market, regional carriers are rapidly gaining ground. These carriers, focused on specific areas of the country, offer competitive pricing, faster delivery times, and specialized services that may be a better fit for some businesses.

Regional carriers like Roadie are offering game-changing delivery solutions, particularly in industries that require same-day or next-day delivery. By leveraging regional providers, businesses can not only reduce shipping costs but also optimize delivery speed and efficiency.

The Power of Multicarrier Shipping

FICTION: Multicarrier software doesn’t support USPS Negotiated Service Agreements (NSAs).

FACT: In today’s volatile shipping environment, the importance of multicarrier shipping solutions cannot be overstated. Businesses that rely on a single carrier are missing out on opportunities to optimize their shipping strategies. Multicarrier shipping software, such as Pitney Bowes’ PitneyShip and ShipAccel, gives businesses the flexibility to compare rates across carriers, automate decision-making, and take advantage of pre-negotiated discounts.

Multicarrier software fully integrates with USPS NSAs, allowing businesses to access special discounts without additional complexity. By leveraging these tools, businesses can easily manage USPS rates and integrate them into their broader shipping strategies.

Key Takeaways for 2025 Shipping Strategy

As businesses navigate these changes, staying informed and adaptable is crucial. Here’s what shippers can do to stay ahead of the curve:

  1. Stay Informed: Keep up with carrier announcements, regulatory changes, and industry updates that could impact your shipping costs and strategies.
  2. Leverage Technology: Utilize automated multicarrier shipping software to streamline your shipping decisions, manage expenses, and access the best rates.
  3. Be Flexible: Embrace a multicarrier approach that includes both national and regional providers, enabling you to optimize for cost and speed.
  4. Negotiate Rates: Don’t settle for retail rates—work with technology partners like Pitney Bowes to access pre-negotiated shipping discounts.

By recognizing the myths and understanding the evolving nature of the carrier marketplace, businesses can make smarter, more cost-effective shipping decisions. The key is flexibility, technology, and ongoing vigilance in a landscape where the only constant is change.

For a more in-depth view, watch the complete on-demand webinar recording here.