Why Use Two Carriers?
A dual-carrier strategy — maintaining active accounts with both UPS and FedEx — provides three primary benefits:
1. Negotiation Leverage
When your carrier knows you can shift volume to the competitor, they negotiate more aggressively to retain your business.
2. Cost Optimization
Rate-shopping each shipment between carriers captures per-shipment savings based on zone, weight, and service differences.
3. Service Redundancy
If one carrier experiences disruptions (weather, labor, capacity issues), you can route shipments through the other.
How to Structure a Dual-Carrier Split
Common Split Models
| Model | Primary Carrier | Secondary Carrier | Best For |
|---|---|---|---|
| 80/20 | 80% volume | 20% volume | Leverage play — maintaining competitive alternative |
| 70/30 | 70% volume | 30% volume | Balanced leverage with meaningful secondary relationship |
| 50/50 | Equal volume | Equal volume | Maximum competition, maximum complexity |
| Service-based | Ground with one | Express with other | Best-in-class per service |
The 70/30 split is often the sweet spot — enough volume with each carrier to get competitive rates, while maintaining a clear primary relationship.
Service-Based Splitting
Some shippers split by service rather than percentage:
- UPS for Ground: Better rates or service in your region
- FedEx for Express: Better air network or commit times
- Or vice versa, depending on your negotiated rates
Implementation Requirements
What You Need
| Requirement | Importance |
|---|---|
| Active accounts with both carriers | Essential |
| Multi-carrier shipping software | Essential |
| Rate-shopping logic | Important |
| Label printers/supplies for both | Required |
| Separate pickup schedules | Required |
Shipping Software
Multi-carrier shipping platforms that support rate-shopping:
- ShipStation: Compares UPS, FedEx, USPS
- ShipEngine/EasyPost: API-level rate comparison
- Shippo: Multi-carrier rate shopping
- Enterprise TMS: Full transportation management
How Rate-Shopping Works
For each shipment, the software:
- Queries both UPS and FedEx for available services and rates
- Applies your negotiated contract rates
- Compares total cost (base + fuel + surcharges)
- Recommends or auto-selects the cheapest option
- Generates the label for the winning carrier
Typical Savings from Rate-Shopping
| Shipper Profile | Savings vs. Single Carrier |
|---|---|
| National e-commerce, even zone distribution | 5–12% |
| Regional shipper, Zones 2–4 heavy | 3–7% |
| Express-heavy shipper | 8–15% |
| Mixed service shipper | 5–10% |
Savings come from zone differences, weight-band pricing variations, and surcharge rate differences between carriers.
Managing Carrier Relationships
Transparency
Be upfront with both carriers about your dual-carrier strategy. Carriers expect it from serious shippers and respect the competitive dynamic.
Volume Commitments
Be careful with volume commitments in contracts when splitting between carriers. If you commit to 1,000 packages/week with UPS but regularly ship 800, you may trigger penalty clauses.
Account Reviews
Schedule quarterly business reviews with each carrier to:
- Review performance metrics (on-time delivery, claims)
- Discuss volume trends
- Address service concerns
- Explore new service options
The Bottom Line
A dual-carrier strategy is one of the highest-ROI shipping optimizations available. The competitive leverage alone often justifies the added complexity. With modern shipping software making rate-shopping nearly effortless, there’s little reason for shippers over 200 packages/week to commit exclusively to one carrier.
Want to see how your rates compare between UPS and FedEx? Upload one invoice to ShipMint’s Instant Analysis — free.