Ground delivery costs are projected to rise by 2.6% in Q2, driven by rate increases and additional fees from UPS and FedEx, according to the TD Cowen/AFS Freight Index. Although per-package rates will remain 29.5% above the January 2018 baseline, this represents a slight decline from the previous quarter’s record high. Customers have seen a 1.9% increase in discounts on ground delivery rates. Increased surcharges and frequent adjustments to fuel calculations are pushing shippers towards alternative delivery options, with ongoing aggressive discounting expected as carriers compete for volume.

Source: https://www.supplychaindive.com/news/parcel-delivery-prices-q1-2025-cowen-afs/744914/