Small parcel shipping costs continue to rise in 2026, forcing many shippers to reassess long‑standing carrier agreements. With record‑high parcel rates imposed by UPS and FedEx, shifting carrier strategies, and growing competition from regional and alternative providers, now may be one of the strongest opportunities in years to conduct a Small Parcel RFP.
Parcel Rates Are at Historic Highs
UPS and FedEx both announced 2026 General Rate Increases that average 5.9 percent, with UPS implementing their increases a full two weeks before FedEx (on December 22, 2025!). While that number mirrors prior years, the true cost impact has been far greater. Expanded dimensional weight rules, higher minimum charges, and rising accessorials, particularly additional handling, residential, delivery area, and large package surcharges, are driving effective parcel cost increases well beyond the headline GRI.
For many shippers, parcel spend is increasing by nearly 10%, even when shipment volume remains flat. Contracts negotiated just a few years ago often lack the protections needed to manage today’s surcharge-heavy pricing models, making cost containment increasingly difficult without a formal review.
A More Competitive Parcel Market in 2026
At the same time, the parcel carrier landscape is changing rapidly. UPS and FedEx remain dominant, but both carriers are now prioritizing profitability over pure volume, pricing aggressively to discourage lower-margin shipments. This shift has opened the door for increased competition.
Amazon Logistics now delivers more parcels annually than any other U.S. carrier, and its continued expansion, especially the introduction of Amazon Ground, has reshaped last‑mile economics. In addition, regional and alternative parcel carriers are gaining meaningful traction. DHL eCom, OnTrac, VeHo, and others are expanding coverage, improving service reliability, and actively competing for shipper volume, often at a lower cost, in targeted geographical areas.
These dynamics have created a rare shipper‑friendly parcel market, particularly for organizations willing to diversify carrier strategies and introduce competition through a structured RFP process.
Why a Small Parcel RFP Makes Sense Now
A modern Small Parcel RFP is about more than comparing base rates. It enables shippers to evaluate total landed cost, understand surcharge exposure, benchmark carrier performance, and align service levels with spend. Most importantly, it creates leverage, forcing incumbent carriers to compete while opening the door to viable alternatives.
How TTC Supports Small Parcel RFPs
Technical Traffic Consultants (TTC) provides complete Small Parcel RFP services, supporting clients through data preparation, carrier modeling, rate and surcharge analysis, contract review and implementation. Our focus is not just identifying savings, but ensuring they are realized.
Customers who have gone to market with TTC in the last six months have achieved 8 to 20 percent savings simply by engaging in the RFP process, without sacrificing service performance.
Final Takeaway
Parcel costs may be higher than ever, but so is the opportunity to challenge them. For shippers questioning whether their current parcel agreements still reflect today’s market realities, now is an ideal time to conduct a Small Parcel RFP.