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

ModelPrimary CarrierSecondary CarrierBest For
80/2080% volume20% volumeLeverage play — maintaining competitive alternative
70/3070% volume30% volumeBalanced leverage with meaningful secondary relationship
50/50Equal volumeEqual volumeMaximum competition, maximum complexity
Service-basedGround with oneExpress with otherBest-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

RequirementImportance
Active accounts with both carriersEssential
Multi-carrier shipping softwareEssential
Rate-shopping logicImportant
Label printers/supplies for bothRequired
Separate pickup schedulesRequired

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:

  1. Queries both UPS and FedEx for available services and rates
  2. Applies your negotiated contract rates
  3. Compares total cost (base + fuel + surcharges)
  4. Recommends or auto-selects the cheapest option
  5. Generates the label for the winning carrier

Typical Savings from Rate-Shopping

Shipper ProfileSavings vs. Single Carrier
National e-commerce, even zone distribution5–12%
Regional shipper, Zones 2–4 heavy3–7%
Express-heavy shipper8–15%
Mixed service shipper5–10%

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.