Shippers spread parcel volume as carrier surcharges climb
Surcharges on big and bulky packages land unpredictably. Tractor Supply's final-mile chief says multiple carriers let the retailer redirect shipments when cost rises The post Shippers spread parcel volume as carrier surcharges climb appeared first on FreightWaves .
In recent years, parcel shippers have been diversifying their carrier options as surcharges and rising costs have made single-carrier agreements less appealing. At the FarEye's Last Mile Leaders America 2026 conference, panelists discussed the growing trend away from reliance on one carrier. Tractor Supply Co.'s Vice President of Final Mile, Kyle Langley, explained that the rural retailer with nearly 2,500 stores across the U.S. has shifted to a mix of parcel carriers, gig delivery networks, and its own private fleet.
The panel moderator cited a FarEye report showing that 45.8% of U.S. delivery operators reported delivery costs rising faster than revenue, with 88% seeing costs growing at the same or faster rate as revenue. Langley cited the increase in variable charges and surcharges, as well as the General Rate Increase (GRI), as factors driving the shift.
Tractor Supply's move to multiple carriers has allowed them to better manage customer expectations for reliable, standard shipping and free handling, while limiting cost increases.
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