Dive Brief:
- Spee-Dee Delivery will not be increasing its rates for parcel and pallet shipments in 2025, the company informed customers in a Nov. 11 letter.
- The Midwest-focused parcel carrier said it "prides itself on offering customers an economical shipping alternative," with no peak season surcharges and minimal added fees.
- Although base rates won't increase, Spee-Dee Delivery will expand the number of ZIP codes where a $2 delivery area surcharge applies. The fee covers 4,507 ZIP codes this year, but that will expand to 4,874 ZIP codes in 2025.
Dive Insight:
Smaller parcel carriers competing with FedEx and UPS generally flex some mix of service and pricing advantages as they look to gain market share.
For Spee-Dee Delivery, competitive rates are a key lever to grow its business. Low rates upfront could help the carrier, founded in 1978, attract shipper interest as carriers offer up heavy discounts to attract more customers in a soft demand environment.
The company's 3% base rate hike for 2024 was lower than FedEx and UPS' increases, and its decision to pass on a 2025 increase runs counter to FedEx and UPS' planned 5.9% price bumps.
While Spee-Dee Delivery's base rates aren't changing for 2025, its coverage area might. The ground delivery provider plans to expand in Missouri and Kansas in 2025 after initially launching in the Kansas City market this past April.
Spee-Dee Delivery's network currently covers Illinois, Iowa, Minnesota, North Dakota, South Dakota and Wisconsin, in addition to select areas of Kansas, Missouri, Michigan and Nebraska.
