FedEx and UPS are under freight-rate pressure from longtime rivals

7In an article, 11said that FedEx and UPS are facing new pricing pressure from longtime rivals. The article explains that the rival has begun lowering fees on some routes by using its existing network and lanes, and is offering aggressive terms aimed at major e-commerce customer contracts.

The article said renegotiations of contracts with some retailers are already under way, and that price and discount terms have emerged as key variables in the talks. At the same time, the rival is showing moves to expand its service coverage and secure small-package volumes.

FedEx and UPS have recently been adjusting their rate structures and discount frameworks, and the article said both companies are reviewing contract terms and freight-rate calculations. Industry sources pointed out that this trend is intensifying price competition and acting as a variable at the time of contract renewals.

The article summarized that this change is especially likely to affect e-commerce deliveries and small-package segments. It said that in the near term, contract terms and discount strategies will become key to competition among companies.