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If the trends of 2025 are any indication, 2026 will present some challenges for parcel shippers with changes and rising parcel shipping costs. Over the past 12 months, shippers have faced fuel price volatility, the introduction of new processing and invoicing fees, updated surcharge criteria, and changes to zones. When you include dimensional rounding (FedEx announced in 2025 that they would round up all non-inch increments) and extended peak demand surcharges, the cost of doing business has never been higher.
FedEx and UPS are less concerned with market share and prioritizing the “right” volume based on what is most profitable and complements their business. For parcel shippers, this means that FedEx and UPS, as a sole provider, may no longer be the best option for your business. Oversized packages, rural deliveries, and more are increasingly being hit with accessorials as FedEx and UPS focus on specific volume types. This also creates a need for parcel shippers to have a proactive strategy to mitigate unavoidable cost increases.
Here are eight actionable strategies to optimize your shipping operations in 2026.
1. Service Optimization: Using Ground Services to Reduce Premiums
Carrier portfolios offer a variety of speed-based tiers; naturally, the faster the transit, the higher the cost. However, data analysis often reveals that “economy” or “ground” services can reach specific zones in nearly the same timeframe as expedited options.
- The Strategy: Analyze your historical transit data to identify lanes where cheaper services suffice. Once identified, update your routing logic and train your fulfillment team to prioritize these cost-effective alternatives.
2. Shipment Visibility: Utilizing Data Fields for Operational Insights
Modern carrier invoices provide a wealth of data, often between 150 and 252 unique data fields per shipment. This is a significant, yet underutilized, resource for gaining operational insights.
- The Strategy: Regularly export your billing data (CSV or Excel) to monitor key performance indicators, including average weight, zone distribution, and service mix. Granular visibility ensures you aren’t paying for redundant services or avoidable surcharges. (Bonus if your transportation execution platform provides this level of visibility, like FreightWise)
3. The Dual-Carrier Model: Mitigating Risk with Secondary Providers
While volume-based discounts often encourage shippers to consolidate with a single carrier, this “single-source” dependence, especially with FedEx and UPS cherry picking the type of volume they want, introduces significant risk. From labor strikes to extreme weather events, total reliance on a single provider can paralyze your supply chain.
- The Strategy: Maintain active agreements with multiple carriers. You can utilize a primary carrier while maintaining a secondary carrier that handles only a few packages per week or a specific shipment profile type. By maintaining even a small volume of shipments with a secondary provider, you ensure that processes are established for both carriers and that they remain familiar with your locations and products. Consequently, if a primary provider fails, you can pivot instantly rather than competing for limited capacity during a crisis.
4. Packaging Engineering: Reducing Costs through DIM Weight Audits
Carriers bill based on the greater of either actual weight or Dimensional Weight (DIM). If your packaging contains excessive dunnage or space, you are essentially paying to ship air.
- The Strategy: Audit your high-volume SKUs to ensure box dimensions are precisely tailored to the product. Reducing box size by even an inch can result in substantial annual savings by lowering the DIM weight threshold.
5. Peak Season Planning: Navigating the 111-Day Surcharge Window
The “Peak Season” has evolved into a nearly four-month event; in 2025, it lasted 111 days with varying weekly surcharges. Waiting until Q4 to plan is a costly mistake. You can review more detailed guidance on our blog page here.
- The Strategy: Begin your peak season strategy in Q1. Use the previous year’s surcharge schedules as a baseline to map out “smart shipping dates” where costs are lower. Conduct a review of high-volume products subject to demand surcharge categories.
6. Large Item Mitigation: Avoiding Manual-Handling Penalties
National carriers utilize automated conveyor systems designed for standard dimensions. “Over-max” or large items disrupt these systems and incur heavy manual-handling surcharges.
- The Strategy: Evaluate the cost-benefit of shipping large items. In many cases, it is more economical to split a single large shipment into two smaller, conveyor-compatible boxes. Or even looking to see if less-than-truckload shipping makes sense.
7. Real-Time Awareness: Monitoring Carrier Alerts and Policy Shifts
Carrier rates and terms are no longer static. To protect your bottom line, you must stay informed of mid-year adjustments and policy shifts.
- The Strategy: Regularly monitor official carrier announcements to anticipate changes. You can subscribe to official updates via the FedEx and UPS alert pages. Click here for FedEx and here for UPS.
8. Industry Expertise: Partnering for Specialized Audit and Optimization
Parcel shipping is a significant line-item expense that requires specialized oversight. If your internal team lacks the bandwidth or the technology to continuously audit and optimize your strategy, external expertise is a prudent investment.
- The Strategy: Partner with experts who possess specialized reporting tools and market intelligence to refine your shipping profile. Proper management ensures you maintain high delivery standards and brand integrity without overpaying.
Ready to protect your margins against 2026 parcel rate hikes? Contact FreightWise for a comprehensive parcel audit and see how our visibility tools can identify your hidden shipping leaks.