The parcel services market has gone from stability to volatility since COVID—and now has to manage recession, changing tariffs, and margin pressure.
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The following article is based on the Episode 280 of the Postal Hub podcast: Parcel Pricing strategies with Open Pricer.
In this episode of the Postal Hub Podcast, Daniel Rueda, CEO of Open Pricer, shared expert insights on how parcel carriers — including postal operators, road freight and last-mile delivery services — can address today’s most pressing pricing challenges. As costs rise and market conditions remain volatile, carriers must rethink their pricing strategies to stay competitive and profitable.
Uncertainty is the new normal in the parcel delivery market
For years, the parcel delivery industry — especially in e-commerce and B2B transport — enjoyed relative stability and steady growth. These last years, carriers have faced a succession of shocks: the COVID-19 pandemic, escalating global geopolitical tensions, and increasing regulatory pressure such as tariff enforcement. These disruptions have left many operators navigating a landscape that is both more competitive and less predictable.
Cost-cutting has become a critical concern for carriers. Meanwhile, global trade is projected to contract by 0.2% this year (WTO), and businesses are reducing restocking or deferring purchases in response to weaker demand. At the same time, energy and labor costs remain high, squeezing carrier margins and accelerating the need for more responsive, data-driven pricing strategies.
Additionally, carriers must find ways to pass these cost increases without damaging relationships or losing business.
Are fuel surcharges enough?
Most parcel carriers already apply fuel surcharges to account for energy price fluctuations. These can act as a “shock absorber,” helping mitigate volatility without renegotiating base prices. But fuel surcharges have limits:
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They often don’t reflect total inflation (labor, purchasing, and energy combined).
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They may generate customer frustration, especially when headlines highlight major carriers increasing them.
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They rarely adapt fast enough in today’s fast-moving environment.
To address these shortcomings, some markets — particularly in South America — are shifting toward energy surcharges that include gas and electricity, not just diesel fuel. In conclusion, they are a good solution, but it’s not the only solution that can be envisioned.
Three strategic levers for smarter parcel pricing
Rueda outlines three pricing levers that every parcel carrier — large or small — should consider:
1. Differentiate General Rate Increases (GRI)
Rather than applying a blanket price increase, carriers should tailor their GRI strategy based on each customer’s profile. Three key factors to assess:
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Customer lifetime value (revenue and growth potential)
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Current pricing level relative to peer customers
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Attrition risk and strategic importance
Example: Some carriers working with Open Pricer achieved increases of up to 15% for strategic customers — and up to 50% for smaller accounts with underpriced contracts.
2. Enhance contract monitoring and compliance
Contract monitoring offers a promising yet untapped opportunity. Analyzing customer profiles and comparing them to their activity reveals areas of improvement. This strategy helps:
- Identifying rerating opportunities
- Optimizing shipping profile compliance
- Managing operational costs
- Mitigating churn risks
- and even identifying cross-selling possibilities
3. Adopt Dynamic Pricing for parcel delivery
Dynamic pricing means adjusting prices more frequently — even monthly or weekly — instead of once per year. It helps:
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Align pricing with real-time costs
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Improve capacity utilization across the network
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Drive behavioral change among customers, with incentives or surcharges to ship during less busy periods or to less congested destinations. Hence, carriers can: improve service levels, reduce strain during peak season, optimize delivery costs and sustainability
“This can be done via a monthly calendar of surcharges and incentives. If a customer exceeds agreed volumes on peak days, a surcharge applies. If they ship during off-peak periods, they get a discount,” explained Rueda.
This approach mirrors time-of-use pricing in energy markets, where customers pay more during peak hours and less during off-peak times.
Technology Makes It Possible
Benefit from advanced pricing strategies. Open Pricer’s SaaS-based pricing platform is designed for flexibility and scalability. Whether you’re a regional parcel carrier, a national postal operator, or a global road freight company, the platform:
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Uses data-driven algorithms to guide pricing and sales decisions
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Helps manage dynamic and differentiated pricing
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Enables precise contract monitoring and compliance tracking
“When you shift from static to dynamic pricing, the number of decisions increases dramatically — you simply can’t do it with Excel anymore,” said Rueda. “That’s where our technology steps in.”
This platform is customizable to individual client needs, helping carriers implement strategies like dynamic pricing, contract monitoring, and personalized rate increases. Navigate the ever-changing market environment efficiently with Open Pricer’s technology-driven approach.
Ready to Optimize Your Parcel Pricing?
As parcel delivery and road freight markets continue to evolve, relying on traditional pricing models isn’t enough. Carriers need tools that help them navigate cost volatility, adapt to customer behaviors, and sustain profitable growth.
Explore how Open Pricer can support your pricing transformation:
Contact us to learn more on how price optimization can help you face the new market challenges:
Postal Hub Podcast is the podcast about latest news, challenges of the parcel, express and mail industry. It was founded and is hosted by Ian Kerr, who has extensive knowledge of the post network in Australia from his experience with the Post Office Agents Association Limited (the national association for small business owners in the postal sector in Australia).
Read more on our latest pricing advices in our White Paper: A Guide to Dynamic Pricing for Parcel Logistics.
