The days when shippers could simply choose among the traditional Big Three parcel carriers (FedEx, UPS and USPS) are increasingly behind us as we all are aware of – I’ve written several times about this topic. But the latest Pitney Bowes Parcel Shipping Index provides even more compelling evidence that the parcel market is becoming more diversified, with alternative parcel providers gaining market share at the expense of the Big 3.
According to Pitney Bowes, U.S. parcel volume reached 23.1 billion shipments in 2025, an increase of 3.3% from the previous year. But perhaps more important than the overall growth is where those parcels are going. The report found that the “Other” category—which includes regional parcel providers and newer last-mile providers—more than doubled its share of parcel revenue, increasing from 3.4% in 2024 to 7.2% in 2025. That is a remarkable jump and a clear indication that competition is expanding beyond the traditional national networks.
USPS lost the most parcel volume, followed closely by UPS. Pitney Bowes reported that USPS volume declined 8.8% in 2025, while UPS volume fell 8.7%. UPS’s decision to reduce its exposure to less-profitable Amazon volume likely played a role in its decline. At the same time, FedEx volume increased 5.1%, demonstrating that the competitive picture is not simply one of the major parcel carriers losing volume across the board. Rather, parcel carriers are making strategic decisions about which shipments, customers and markets make economic sense for their networks.
In 2025, Amazon Logistics handled 6.9 billion parcels, up 9% year over year, making it the largest parcel delivery provider by volume in the United States, according to Pitney Bowes.
Additionally, Pitney Bowes reported that the “Other” group increased parcel volume by 127% in 2025, driven in part by growing volumes associated with Chinese e-commerce platforms Shein and Temu.
What does this mean for you?
For shippers, this changing competitive landscape creates both opportunities and challenges. More parcel providers mean more choices, but having more choices does not automatically make parcel management easier. Regional networks can offer attractive pricing and strong service in specific geographies, while national networks can provide broader coverage and consistency.
That makes a multicarrier strategy increasingly important. Shippers need the ability to evaluate parcel providers based on cost, service, geography, delivery requirements and package characteristics rather than relying on a single network.
Know Your Surcharges and Rates
- FedEx’s Demand Surcharge will go into effect on Oct 26 and increase on Nov 23 and again on Dec 28 until Jan 17, 2027.
- Additional FedEx Demand Surcharges for Additional Handling, Oversize and Ground Unauthorized Package will go into effect September 28 with increases throughout the peak season.
Why am I telling you this?
I’m Jay Kent, CEO/Founder of SLB Performance, a business advisory group that helps companies, like yours, reduce supply chain costs, implement BI tools, improve in-stocks and customer service.
After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals.
Twice a month, I’ll also share relevant small parcel and supply chain news.
Let’s talk! An initial consultation with me will cost you nothing. Click here to schedule a call.
Look for the next Jay’s Parcel Notes, a twice a month LinkedIn newsletter for additional news and thoughts.
Jay Kent