The Hidden Cost of Carrier Loyalty: Why It’s Time to Reevaluate Your Shipping Strategy

If your brand still relies on a single parcel carrier out of habit or legacy contracts, it could be costing more than you think. Sticking with the familiar FedEx or UPS may feel safe and simple, but in 2025, simplicity often comes at a premium. The parcel delivery landscape has changed, and what once felt like a smart, stable strategy is now a risky form of inertia. As new carriers emerge and pricing structures shift, the cost of loyalty is rising, and so is the opportunity cost of staying put. In this article, we’ll break down what carrier loyalty could be costing you and how forward-thinking shippers are gaining an edge with smarter, more flexible strategies.

Carrier loyalty could be costing you

Many brands choose a single “go-to” carrier, typically UPS or FedEx, because it’s familiar, negotiated, or built into legacy systems. There’s a sense of simplicity and consistency that comes with sticking to the “safe” options.

But simplicity often comes at a premium, and consistency doesn’t guarantee value.

What feels like loyalty may actually be lack of flexibility, limited visibility, and overexposure to one carrier’s pricing model.

If you’re only working with one or two carriers, you’re likely:

• Missing better rates for specific parcel types or zones
• Paying hidden surcharges that go unchecked (fuel, DAS, residential, etc.)
• Losing leverage in contract negotiations
• Experiencing uneven performance during peak seasons or staffing disruptions

Carriers are constantly adjusting their fee structures. UPS, for example, has modified its fuel surcharge table more than a dozen times in recent years. Without comparison data, you may not notice until your shipping margins start to erode.

Signs it’s time to reevaluate your shipping strategy

It’s important to consistently evaluate your shipping strategies and carrier mix to stay on top of those hidden pitfalls. You might need to rethink your approach if:

• You haven’t benchmarked your shipping rates in over 12 months
• You’re seeing growing costs but not improved performance
• Your customers are mostly residential or order lightweight items
• Peak season issues (delays, rate spikes) hit harder than expected
• Your volume doesn’t qualify for deeper discounts, or doesn’t justify the loyalty

Carrier diversification without disrupting ops

Carrier diversification isn’t just a nice-to-have, it’s becoming a necessity.

Here’s why forward-thinking brands are embracing it:

• Access to emerging carriers like Amazon Logistics, UniUni, OnTrac, and SpeedX
• Parcel matching by profile: lightweight with gig carriers, express with UPS, etc.
• Better cost control through rate shopping and zone analysis
• Operational resilience when a primary carrier faces disruptions or caps volume

Fortunately, flexibility doesn’t mean complexity if you’re using the right partners and tools. You don’t have to rip and replace your entire operation to diversify.

To optimize your multi-carrier shipping strategy, start with:

• A carrier audit to benchmark performance and cost
• Technology that allows multi-carrier rate shopping and routing
• A fulfillment partner with built-in access to multiple carriers
• Testing alternative carriers in lower-risk zones or SKUs

We’ve seen many brands reduce parcel spend by $1+ per shipment just by realigning their carrier strategy with no operational overhaul required.

Balance carrier loyalty with a multi-carrier strategy

In today’s parcel market, loyalty is a liability if it isn’t earning its keep.

The brands that win are those who are agile, cost-aware, and proactive about matching each shipment to the right carrier.

It’s not about breaking ties with your primary carrier. It’s about getting smarter with how and when you use them.

Want to diversify your small parcel shipping strategy? Work with a multi-carrier logistics platform like iDrive Logistics for carrier diversification, shipping cost reduction, and more.