Amazon, Walmart Threaten UPS, FedEx Dominance by 2027
The parcel delivery landscape is shifting. By 2027, Amazon, Walmart, and independent carriers could outpace the big three carriers - UPS, FedEx, and USPS - in deliveries without any changes. This shift is driven by large retailers investing in their own delivery networks and the expansion of services like Amazon's Same-Day and Next-Day delivery.
Major carriers are implementing peak season surcharges despite muted demand growth. UPS has already started applying additional handling charges and will introduce ground and overnight air surcharges later this month. The average daily volume during the peak season is expected to increase by low double-digits compared to earlier this year. However, critics question the rationale of these surcharges in a soft retail environment.
This trend is leading to a loss of market share for the big three carriers. Amazon, Walmart, Target, and independent carriers like OnTrac, Veho, Jitsu, and UniUni are gaining ground. Some carriers have not announced surcharges, but the market is divided on whether this is a wise strategy. The lack of publicly available data makes it difficult to compare the exact sales of these companies, but the sheer volume handled by UPS, FedEx, and USPS during peak season indicates high revenue.
The parcel delivery market is evolving, with retailers and independent carriers challenging the dominance of traditional carriers. The implementation of surcharges may drive shippers to alternative delivery companies, further shifting the market. As the peak season approaches, it remains to be seen how these changes will impact the industry and consumers.
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