When it comes to shipping a package, typically you think of the big guys. FedEx, UPS, and USPS. If you haven’t considered or implemented regional parcel carriers, you might be leaving money on the table. A regional parcel carrier is a package delivery company usually cheaper, more flexible, and responsive than national carriers. These carriers service tens of millions of people and not hundreds of millions in the domestic United States. Consequently, they offer shipping advantages within a targeted geographic area.
Regional carriers such as LSO, Dicom, Courier Express, OnTrac, Spee-Dee, Lasership, Pitt-Ohio, and others offer reliable parcel delivery services at rates up to 40% less than national carriers. Focusing on particular geographic regions can translate into a win for shippers who leverage a regional carrier’s network.
Where do regional parcel carriers deliver?
These regional shipping carriers ship to commercial and residential addresses. The bulk of today’s carriers only service a handful of states, basically Zone 2, 3, and 4.
Who are some regional parcel carriers?
|Regional Carrier||Delivery Area|
|Courier Express||AL, FL, GA, NC, SC, TN, VA|
|Dicom (Formerly Eastern Connection)||DC, DE, CT, MA, MD, ME, NH, NJ, NY, PA, RI, VT|
|GSO||AZ, CA, NM, NV|
|IntelliQuick Delivery||AZ, WA, OR, ID, NV, CA, NM|
|International Bridge||AK, HI|
|LaserShip||CT, DC, DE, FL, GA, IN, KY, MA, MD, MI, NC, NH, NY, NJ, OH, PA, RI, SC, VA, WV|
|LSO (Lone Star Overnight)||AL, AR, LA, MS, NM, OK, TN, TX, MX|
|OnTrac||AZ, CA, CO, ID, NV, OR, UT, WA|
|Spee-Dee Delivery Service||IA, IL, MN, MO, ND, NE, SD, WI|
|United Delivery Service||IL, IN, WI|
|PITT OHIO||DC, DE, IN, KY, MD, MI, NJ, NY, OH, PA, VA, WV|
Benefits of using these carriers
- Cost reductions
- Reduction of accessorial fees or surcharges
- Some have no residential, DAS, or dimensional weight fees
- High on-time delivery rates
- Particularly, more flexibility and knowledge of local areas
- Faster delivery times
- Enhanced customer service
- Reach more locations with ground in 2 days
- Additional delivery options offer many benefits
- Peak season consistency
- Possible later pickup times
Drawbacks of these smaller carriers
- Lesser coverage area than FedEx or UPS
- Limitation of service offerings
- Additional vendors/lanes to maintain
- Further employee education needed to ship with efficiency
What service levels are available with regional shipping companies
- Many times regional shipping carriers can deliver ground packages the next day with ground solutions that FedEx and UPS cannot at this service level.
- Early AM to economy express available
- Hundred Weight and Multiple Package Grouping
- Postal Hybrids
Will FedEx and UPS get mad?
FedEx and UPS want all of your business; they do not want you to use a regional parcel carrier. This reduction in FedEx and UPS volume could affect your overall discount with the major carriers. Remember, your shipping discounts many times are tied to volume levels. Possible reductions in tier level incentives will be based on a case by case basis. Therefore, Refund Retriever can analyze your current national carrier agreement to help.
How to start shipping with a regional shipping carrier
Once you have identified a regional parcel carrier you would like to explore, you need to provide data. This data includes weights, service levels, zip codes, and address detail. Feel free to reach out to Refund Retriever if you have any questions about regional shipping carriers.
Refund Retriever can analyze your current shipping profile. Let us determine what packages should be converted to a regional shipping carrier. In summary, let our data experts provide data deliverables with will make your transition more manageable and cost-effective.