UPS vs USPS vs Fedex: Which is the Best Shipping Carrier

Businesses need reliable freight companies to facilitate timely deliveries, keep products in quality condition throughout transit and maintain customer satisfaction. Among the top shipping companies in the world are United Parcel Service (UPS), United States Postal Service (USPS) and FedEx.

Should you choose FedEx, UPS or USPS as your shipping carrier? We're breaking down the pros and cons of each option to help you make the right decision for your business.

UPS

First, let's review the pros and cons of UPS:

Pros

Here are the advantages of working with UPS:

• Reliability: UPS is known for its dependable delivery service, especially for time-sensitive shipments. Its customer service team typically responds quickly to questions and concerns, which is an important attribute in a shipping carrier for your business.
• High-value item handling: UPS has a reputation for packaging fragile and valuable goods with the utmost care. Its certified packing experts use advanced materials and techniques to ship sensitive items of various shapes and sizes, including antiques, collectibles, electronics, art and high-end jewelry.
• Insurance options: With UPS, you can insure your shipments to safeguard them against damage, loss and theft. You can access perks like fast claims and customizable coverage options.
• Superior ground shipping: One of UPS's biggest benefits is its reliable ground shipping services, providing low rates and fast delivery times. UPS offers fully tracked ground services throughout the United States and Canada.

Cons

However, there are also some disadvantages to consider:

• Surcharges: UPS imposes various surcharges on top of its standard shipping rates, increasing the total cost of shipments. Surcharges include fees for oversized packages, fuel and residential deliveries. Depending on the product you're shipping and the size and weight of the box, you may incur additional handling surcharges.
• Rural shipping complexities: If your business ships items to rural or remote areas, you'll likely accumulate extra shipping fees. Unlike USPS, UPS charges extra to ship to and pick up from these locations.

USPS

Here are some typical pros and cons of USPS as a freight carrier:

Pros

These are the benefits of shipping with USPS:

• Accessibility: USPS was founded to provide universal postal service and affordable rates for all Americans. Perhaps its most notable benefit is its accessibility — technically, it's the only carrier legally permitted to touch every mailbox in America, and it's designed to serve every citizen in the nation. With a broad and reliable network, USPS will deliver and pick up packages with the same universal service standards, whether you're in a small, remote town or a major U.S. city.
• Affordable rates: USPS offers the lowest rates of the three carriers. If you're seeking an affordable option for lightweight packages, this is the shipping carrier for you.
• Small package delivery services: USPS specializes in handling lightweight, compact packages. It's great for shipping items like apparel, candles, books and snacks.
• Discount options: With USPS's Priority Mail system, shipping costs are based on a package's outer dimensions rather than its total weight. This option is ideal for businesses that ship high volumes of small, dense packages.

Cons

Here are some of the drawbacks of USPS:

• Weight restrictions: USPS will only ship packages weighing up to 70 pounds, so it won't work for larger and heavier items. In comparison, UPS and FedEx can handle packages up to 150 pounds.
• Reliability concerns: Most USPS packages reach their destinations without complications. However, some customers have reported extended shipping delays with no tracking updates, particularly for international shipments. Additionally, you might have some trouble getting in touch with customer support, especially considering USPS serves millions of customers.

FedEx

Below are some potential pros and cons of working with FedEx:

Pros

Shipping with FedEx provides these benefits:

• Fast shipping: FedEx is known for its reliable overnight and express shipping options, making it preferable for shipping time-sensitive items, like critical documents and perishable food products.
• Excellent temperature control and cold packaging: FedEx partners with leading vendors to provide its customers with quality temperature control solutions. Its refrigerated and cold shipping options keep products between 35 and 46 degrees Fahrenheit for 48 or 96 hours — all without using gel packs or dry ice. As such, FedEx is a go-to choice if your business ships temperature-sensitive products.
• Business-to-business (B2B) shipping: FedEx is considered the premier carrier for B2B deliveries, which is a bonus if you regularly ship goods to other businesses. It's a strong choice for B2B shipping due to its robust solutions for time-sensitive and urgent deliveries, as well as its advanced tracking and reporting features.
• Global network: FedEx also excels in international shipping. Its extensive network covers more than 220 countries and territories.

Cons

Here are the drawbacks of FedEx:

• Complaints of lost packages: No shipping carrier can guarantee flawless delivery 100% of the time — shipping delays and lost packages can happen with any service. However, many customers have reported delivery issues with FedEx — they lost the most packages in 2022.
• High costs and additional fees: Shipping costs are probably FedEx's biggest pitfall. It's the most expensive major carrier in the U.S., with higher rates compared to UPS and USPS. Similar to UPS, FedEx also imposes surcharges — such as residential delivery fees and fuel expenses — that drive up the overall cost.

How to Cut Shipping Carrier Costs

In addition to choosing the right carrier, here are other ways to trim down shipping costs:

• Reduce packaging: Use smaller, lighter packaging to decrease dimensional weight pricing.
• Consolidate shipments: Combine multiple orders into fewer shipments whenever possible.
• Use a shipping platform: Various shipping platforms allow you to compare rates across multiple carriers, helping you find the most cost-effective shipping services for your business and products.
• Negotiate rates: You may be able to contact your carrier and negotiate better rates based on your shipping volume. The more packages you ship through that carrier, the more leverage you have for negotiation.
• Choose a strategic warehouse location: By selecting a warehouse closer to your customer base, major transportation hubs and highways, you can significantly reduce shipping distances and costs.

Find the Right Warehouse Space With Portal Warehousing

Portal offers high-quality warehouse space in several major cities, including Manhattan, Minneapolis, Phoenix and Los Angeles. You can select a location that's convenient for you, enabling close proximity to your customers and target locations.

Focus on growing your business with a move-in-ready unit but without the commitment of a long-term lease. Choose from various warehouse options and sizes, and enjoy amenities such as top-level security, included utilities, loading docks and equipment, and daily scheduled pickups from major carriers. You can also access discounted shipping rates within the Portal network.

Find the ideal startup space for your unique needs. Book a tour today to browse available warehouse space.