Shippers Abandon Single-Carrier Strategy as Parcel Surcharges Rise

Retailers and shippers are systematically moving away from single-carrier agreements, driven primarily by rising surcharge structures and improved multi-carrier management software. Tractor Supply Co., which operates nearly 2,500 stores across 49 states, exemplifies this shift after discovering that concentrating all volume with one carrier does not guarantee better negotiating leverage. Instead, the company now balances shipments across multiple parcel carriers, gig networks, and its own private fleet.

The underlying economic pressure is significant: according to FarEye's Eye on the Last Mile America 2026 report, 45.8% of U.S. delivery operators report that delivery costs are rising faster than revenue, with 88% experiencing costs that grow as fast as or faster than revenue. Last-mile costs increased 12% for a second consecutive year. Carriers have introduced variable surcharges for package types, dimensional weight, and handling fees on top of traditional general rate increases, making cost forecasting unpredictable for shippers who can no longer simply pass these increases to consumers expecting flat-rate shipping.

This structural shift has been enabled by neutral multi-carrier software platforms that carriers themselves cannot easily build or offer. The transition accelerated following the 2013 e-commerce surge and the COVID-19 supply chain crisis, which exposed the operational rigidity of single-carrier relationships. For supply chain professionals, the implication is clear: single-carrier consolidation strategies are no longer a default best practice, and real-time rate shopping requires careful volume-balancing protocols to avoid unintended discount tier erosion.