UPS and FedEx are increasing their discounts, but shipping expenses continue to rise significantly.

In Q4, parcel delivery discounts for FedEx and UPS rebounded after a decline in the previous two quarters, benefiting both ground and express shipping customers. Small and medium-sized shippers saw more significant advantages in ground deliveries, while larger clients gained from express shipment discounts. However, increasing shipping rates, influenced by peak season surcharges, overshadowed these discounts. As rates are expected to rise further in Q1, savvy customers may negotiate better deals, with FedEx and UPS prioritizing small and medium businesses to enhance profitability.