There's a shift happening in the parcel market in favor of shippers, says Robyn Meyer, senior vice president of parcel strategy and solutions with Transportation Insight.

The arrival of regional and other types of alternative parcel carriers over the past few years has given shippers more choices in the marketplace, Meyer says. The expansion of options was in response to skyrocketing demand for service at a time when most consumers were under lockdown and needed home delivery of virtually every kind of product.

For the most part, the new providers have remained in place, even as demand for their services has sunk in the post-pandemic period. Today, says Meyer, more than 85% of the country is covered by regional carriers, providing a continuing challenge to UPS and FedEx.

Shippers that wish to diversify their parcel carrier base need to understand the alternatives that are available, Meyer says. Not every carrier is equal in its ability to provide shipment visibility, tracking data and opportunities for improvement.

There’s also the need to strike a balance between diversification and loyalty to carriers that results in better rates and guarantees of service in times when capacity is tight. It’s more than a question of just adding carriers to the mix, Meyer says. Shippers need to understand “opportunities for leveraging [alternative carriers] without negating ties with the nationals.”

Of prime importance is the data on carrier performance and costs, as well as shipper requirements, that can ensure on-time delivery while minimizing the need to pay extra fees for things like oversized packages. It’s a question of “how you leverage information to make smarter decisions,” Meyer says, adding that shippers today demand service reliability as much as they do speed.

“More and more regionals are bringing to market that type of service and detail,” Meyer says. “Understanding the offers that are out there is tremendously impactful.”