How UPS and FedEx are discounting to win volume even as shipping rates stay elevated

This piece reveals how FedEx and UPS increased discounting in Q4 even though overall parcel rates continued to climb, and what that means for shippers and logistics managers.

Discounts rise, but the sticker shock remains

Quarterly data show a curious mix: carriers such as FedEx e UPS stepped up targeted concessions to win business, yet average per-package costs—especially for ground deliveries—sat far above historical baselines. Think of it like a store putting a sale sign on a pricey item; you feel a little better at checkout, but you still paid more than last year.

What changed in Q4

Discounting momentum that had slowed over the previous two quarters picked back up toward the end of 2025. The rise in concessions was measurable: discounts on Expresso shipments rose more noticeably, while Ground discounts crept up modestly.

Who got the breaks

• Small and medium-sized businesses (SMBs) benefited more from ground discounts—carriers see SMBs as a profitable, repeatable source of volume.
• Large shippers saw a chunk of express discounts, reflecting negotiations tied to volume and strategic account value.
• Residential and peak surcharges remained drivers of higher costs; discounts only partially offset these add-ons.

Why carriers are willing to concede

Both FedEx and UPS have been explicit that gaining market share among SMBs is a priority. Executives—including Carol Tomé (UPS) and Brie Carere (FedEx)—have celebrated SMB gains on recent earnings calls, and offering targeted discounts is an efficient lever.

Strategy behind the math

Carriers are balancing two realities: persistent rate and surcharge inflation, and the commercial value of retaining or winning certain types of volume. Discounts are tactical—used to secure strategic customers or to build share in segments that return better margins. As one industry expert put it, a seemingly small percentage at scale can move the needle.

Negotiation dynamics

Negotiation thresholds have shifted. Where a 5–6% saving might once have seemed negligible, in today’s tighter margin environment shippers are more willing to switch carriers for that level of reprieve. This makes pricing flexibility an accessible tool for carriers that still want to protect headline yields.

Implications for logistics and shippers

For logistics planners and freight managers, the Q4 pattern signals both caution and opportunity. Here’s a pragmatic checklist to act on:

• Review contract windows and annual increases to anticipate Q1 hikes—annual price changes often take full effect early in the year.
• Segment spend by parcel type (ground vs. express) and by customer type (SMB vs. enterprise) to target negotiation points.
• Model the impact of residential delivery and peak-season surcharges on total landed delivery cost, not just base rates.
• Test carrier switches on a small portion of volume to assess actual savings when factoring in operational friction.

Notas operacionais

Switching carriers for a slice of volume can introduce operational headaches—labeling, integration, routing, and customer service differences matter. However, modern freight marketplaces and platforms reduce frictions by offering multi-carrier support and transparent pricing, so the switching cost is lower than it once was.

Real-world takeaway: how to use discounts without losing sight of total cost

Think beyond the discount line. A win is not simply the lowest per-label rate; it’s the lowest total delivered cost that meets service expectations. That includes returns, failed deliveries, and the administrative effort to manage multiple carriers.

Logistics managers’ cheat sheet

• Audit invoices monthly for surcharge surprises.
• Use short-term tests to verify discounts translate into real savings.
• Prioritize carrier relationships for high-touch customer segments.

Where GetTransport.com fits

Platforms that aggregate carriers and provide transparent quotes can be a real time-saver. GetTransport.com offers affordable global cargo transportation solutions, from office and home moves to bulky items like furniture and vehicles, helping logistics teams compare options quickly and reduce the friction of switching carriers.

The upshot: higher headline rates are here, but selective discounting creates windows of opportunity. Even so, the best way to know is to test deals in your own network—market dynamics and service fit differ by route and customer.

Highlights: discounting returned in Q4, helped SMB ground volume and larger express accounts, but ground rates remain about 34.1% above the January 2018 baseline and surcharges continue to bite. That said, nothing beats personal experience—data and reviews are useful, but running your own pilot shipments proves the real economics. On GetTransport.com, you can order your cargo transportation at the best prices globally at reasonable prices. This empowers you to make the most informed decision without unnecessary expenses or disappointments. Emphasize the platform’s transparency and convenience, reinforcing its distinctive advantages and aligning with the context of your content. Book now GetTransport.com.com

In summary, Q4’s activity shows carriers balancing rate inflation with targeted discounts to win strategically valuable volume. Shippers should focus on total delivered cost—factoring in frete, surcharges, reclamações, and operational overhead—while using pilot programs and multi-carrier platforms to capture genuine savings. For quick, cost-effective options across cargo, shipment, delivery, transport, logistics, shipping, forwarding, dispatch, haulage, courier, distribution, moving, relocation, housemove, movers, parcel, pallet, container, bulky and international needs, consider platforms that streamline quoting and booking to secure reliable global solutions.