Parcel carriers OnTrac and GLS US will increase their shipping rates within the next month, according to recent announcements from the companies.
OnTrac's shipping rate hike, taking effect Jan. 1, 2025, amounts to a 5.7% average increase, parcel analyst and LPF Spend Management founder Nate Skiver said on LinkedIn. That's slightly lower than FedEx and UPS' announced increases of 5.9%.
OnTrac is also increasing various surcharges, including those for residential deliveries, large packages and shipments to rural areas.
Despite the higher upcoming prices, the e-commerce-focused parcel carrier noted on its website that it offers shippers "significant discounts based on volume." Chief Commercial Officer Josh Dinneen announced on LinkedIn that retailers "can lock in rates and special incentives for the entirety of 2025 with OnTrac."
OnTrac is looking to draw more volume into its network after aggressively expanding in recent years. S&P Global Ratings reported in September that the carrier has grappled with volume declines and higher operating costs, but OnTrac later announced it is ready for further growth after inking a financing deal with lenders.
GLS US' base shipping rates will jump by 5.9% on average on Dec. 23, coming in near the end of the peak season shipping rush, according to its website. The company will also increase its surcharges.
GLS US has been expanding its reach both domestically and internationally as it seeks an edge among FedEx and UPS alternatives. The carrier launched partnerships with other delivery providers like Better Trucks in 2023, and it debuted direct parcel delivery between the U.S. and Europe earlier this year by leveraging its parent company's European network.
