The Rise of Regional Carriers and What It Means for Shippers
- mariana10334
- Jan 20
- 4 min read
Updated: Jan 22
3 minute read
Author: M.S.
Smaller carriers, faster deliveries, and how TMS platforms handle complex routing
In recent years, the shipping and logistics landscape has been reshaped by the emergence and growth of regional carriers, smaller, geographically focused delivery providers that offer an alternative to the traditional duopoly of national giants like UPS and FedEx. For shippers looking to balance cost, speed, and customer experience, understanding this trend, and how to leverage it, has become a strategic imperative.
Key Takeaways:
Cost Efficiency: Regional carriers often offer rates 10-30% lower than national giants.
Speed: Faster next-day delivery within specific geographic zones.
Flexibility: Better customization for shippers compared to rigid national networks.
Why Regional Carriers Are Gaining Traction
1. Rapid Growth in Volume and Market Share
While national carriers still dominate the overall parcel market, regional carriers have seen significant momentum. According to the 2024 Pitney Bowes Parcel Shipping Index Report, regional carriers experienced a 22.6% year‑over‑year increase in volume, dwarfing UPS’s 1.7% growth and FedEx’s volume decline of 3.6%.
Another 2024 parcel shipping report noted that parcel volumes reached a record 23.8 billion shipments, with smaller carriers experiencing the biggest surge in parcel volume growth compared to larger players.
These numbers underline a clear trend: shippers are increasingly relying on regional carriers to handle growing delivery demands, particularly for last‑mile and short‑haul shipments.
The Advantages for Shippers
2. Faster, More Reliable Delivery
Regional carriers focus on specific geographic areas, often a single state or group of neighboring states, which makes their networks leaner and more efficient. This concentrated service footprint allows for:
Faster pickup and delivery windows, including same‑day or next‑day transit in many areas.
Reduced transit delays by avoiding the hub‑and‑spoke routing that slows national carriers.
Shippers can use this speed advantage to boost customer satisfaction, a critical differentiator in e‑commerce where delivery expectations are continually rising.
3. Cost Savings
Operational efficiencies and lower overhead give regional carriers a cost advantage. Shipments handled by regional providers can often be 10%–40% less expensive than comparable services from UPS or FedEx.
Because regional carriers typically operate fewer terminals and deploy shorter routes, they incur fewer handling costs, savings they can pass on to shippers in the form of lower rates and fewer additional fees.
Feature | Regional Carriers | National Carriers (FedEx/UPS) |
Cost | Generally Lower (Fewer Surcharges) | Higher (Base rates + Surcharges) |
Speed | Faster in local zones | Slower for short-haul |
Flexibility | High (Custom solutions) | Low (Standardized process) |
Coverage | Specific States/Regions | Nationwide / Global |
4. Personalized Service and Flexibility
Large national networks must standardize nearly every process, which can limit flexibility. Regional carriers, on the other hand, are often praised for:
Direct communication and responsiveness
Tailored services for unique delivery needs
Greater willingness to accommodate shifts in schedule or volume
This “high‑touch” service model is particularly attractive to small and mid‑sized businesses that want partners, not just providers.
Challenges and the Role of TMS Platforms
5. The Complexity of Managing Multiple Carriers
While regional carriers bring clear benefits, relying on a patchwork of providers introduces complexity for shippers:
Different rate structures
Fragmented tracking and visibility
Diverse service areas that require intricate planning
These challenges are why many shippers are turning to Transportation Management Systems (TMS) and multi‑carrier shipping platforms.
6. TMS: Orchestrating Complexity with Technology
A modern TMS, like Amous TMS,offers the tools necessary to harness the power of regional carriers while minimizing headaches:
Automated carrier selection and rate comparison: TMS platforms evaluate cost and delivery promises across national, regional, and local carriers.
Real‑time visibility: Integrated tracking lets shippers see the status of shipments across multiple networks.
Rule‑based routing: Advanced routing logic ensures each shipment goes via the most efficient route based on service level, cost, and geography.
These capabilities are no longer niche, they’re becoming foundational for businesses that manage diverse carrier mix strategies and complex delivery requirements.
Strategic Benefits of a Diversified Carrier Network
7. Risk Mitigation and Resilience
A diversified shipping network helps protect against capacity constraints, surcharges, and delays. When a national carrier hits peak volume limits or implements heavy surcharges, shippers using alternative regional carriers can maintain throughput and service levels.
8. Customer Experience Gains
Ultimately, faster transit times, lower costs, and broader service options translate into better customer experiences, and stronger brand loyalty.
Conclusion
The rise of regional carriers represents a paradigm shift in logistics: shippers no longer need to choose between cost and service, nor be locked into a monolithic provider. By combining regional strengths with national coverage and the orchestration power of modern TMS platforms, businesses can build resilient, cost‑effective, and customer‑centric shipping strategies.
The data is clear, regional carriers are not just a trend, but a strategic asset for forward‑thinking shippers in an increasingly competitive delivery market.
Frequently Asked Questions
Are regional carriers reliable? Yes, they specialize in specific areas, often providing higher on-time performance for short distances than national carriers.
How much can I save with regional carriers? Shippers typically see savings between 10% and 30% by diversifying their carrier mix.