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Freight modes · Parcel

Parcel shipping costs, priced on your real volume

Parcel looks simple: a carton, a label and a rate. In practice your parcel shipping costs are set by dimensional weight, a growing list of surcharges, and discount tiers and minimums written into your carrier agreement.

We review 12 months of your parcel invoices next to the rest of your freight, then contact your parcel carriers and negotiate your agreements on your behalf. We also flag cartons that should ship as LTL.

Compare all freight modes →

  • 20+Years in logistics
  • $1B+Freight managed
  • IndependentNot a broker or carrier
  • No upfront feesPaid only from savings verified on your invoices

Who it’s for

Built for US CPG food and beverage brands with $1M+ in annual freight spend that ship cartons as well as pallets: direct-to-consumer orders, samples, small store replenishment and e-commerce.

  • Ambient packaged goodsSnacks, packaged foods, beverages and supplements shipped in cartons to homes, stores and offices.
  • Insulated and cold-pack shipmentsChilled or frozen product in insulated boxes with gel packs or dry ice, where packaging size drives the bill.
  • Wine and specialty beveragesHeavy, fragile cartons with their own packaging, service and delivery requirements.
  • Brands shipping both cartons and palletsTeams that run parcel and LTL from the same warehouse and rarely compare the two.

Where parcel shipping costs leak

  • Dimensional weightCarriers bill the greater of actual and dimensional weight. For UPS daily rates, dimensional weight is length × width × height in inches divided by 139 (source: UPS dimensions and weight guide). Oversized cartons and void fill mean paying to ship air.
  • SurchargesResidential, delivery area, additional handling, large package, fuel and peak or demand surcharges can add more than the base rate on some packages.
  • Discount tiers and minimumsDiscounts tied to volume tiers you no longer hit, and a minimum net charge that wipes out discounts on light packages.
  • Service level creepAir or expedited services used out of habit when ground would arrive in time.
  • Multi-carton ordersSeveral cartons to one address that would cost less as a single LTL pallet.
  • Billing errorsAddress corrections, duplicate charges and late deliveries that are never checked against the invoice. The U.S. EPA’s SmartWay program suggests comparing billed payload with your own product weights (source: EPA SmartWay).

How we lower your parcel costs

Parcel savings come from the contract, the carton and the choice of mode. These are the levers from our 10 that matter most for parcel.

See all 10 savings levers →

Industry guidance

What SmartWay recommends on packaging and parcel

According to the U.S. EPA, SmartWay is a voluntary public-private program, launched in 2004, that “helps companies identify and select more efficient freight carriers, service providers, transport modes, equipment, and operational strategies to improve supply chain sustainability and lower costs from goods movement” (source: EPA SmartWay). Here is what its shipper guidance says about packaging and parcel shipping, and what it means for your freight bill.

  • Right-size the packageSmartWay’s packaging fact sheet counts delivery parcels as packages and says lightweighting and reconfiguration can reduce package weight or increase the product-to-package ratio. Its first next step is a packaging audit, including avoiding higher-rated packaging than you need (source: EPA SmartWay). With dimensional weight, smaller cartons usually mean lower bills.
  • Cut what doesn’t need to shipThe same fact sheet describes an electronics maker that removed paper documentation from a product’s packaging, fitting three units in the space of two and saving $1.3 million and 954,000 pounds of freight a year (source: EPA SmartWay).
  • Check invoices against your own dataSmartWay’s route and network fact sheet suggests comparing invoice payload with the product weights in your own systems (source: EPA SmartWay). For parcel, the same habit catches billed weights and dimensions that don’t match what you shipped.
  • Compare package carriers like for likeSmartWay’s carrier data ranks package delivery carriers in their own category, separate from truckload and LTL (source: EPA SmartWay).

Maximizer Team is not affiliated with or endorsed by the U.S. EPA. Full list of sources below.

When to switch modes

The right answer is rarely one mode for everything. We choose lane by lane and order by order, based on cost per case, delivery requirements and how the product needs to travel.

If you see thisConsider
Several cartons to one address on the same dayLTL, on a single pallet
Heavy or large packages hitting handling surchargesLTL, or repacking to avoid the surcharge
Steady store replenishment in cartons to one regionA consolidated shared truckload or pool distribution
Air services used for orders that aren’t urgentGround service, matched to the real delivery date

See how we compare them in our freight modes guide and our mode optimization lever.

Invoices · Review · Negotiate · Verify

How it works

  1. Send 12 months of invoicesFreight invoices and rate files for this mode and the rest of your freight. We sign an NDA where needed.
  2. Get a 14-day written reviewA free written freight savings review of your biggest opportunities, ranked by size and effort.
  3. We negotiate with your carriersWe contact your carriers and contractors and negotiate on your behalf. We don’t haul or book freight or take carrier commissions.
  4. Verify savings on your invoicesEvery month we check paid invoices against the baseline. Savings count only once they show up on your invoices.

FAQ

Parcel FAQ

More answers on our FAQ page

How is dimensional weight calculated?

Multiply the package length, width and height in inches, then divide by the carrier’s divisor. UPS uses 139 for daily rates. You pay for whichever is greater: dimensional weight or actual weight. Your agreement may use a different divisor, which is one of the terms we review.

Can you negotiate our UPS or FedEx agreement?

Yes. We review your agreement and invoices, then contact your parcel carriers and negotiate discounts, tiers, minimums and surcharges on your behalf. Your account and agreement stay in your name.

Is parcel worth reviewing if most of our freight is pallets?

Often, yes. Parcel spend tends to get less attention than truckload and LTL, and discount tiers and surcharges change every year. We also check where cartons should move as LTL instead.

Do you help with cold-pack parcel shipments?

Yes. Insulated boxes and gel packs add size and weight, so carton choice and service level have a big effect on cost. We look at both, along with surcharges.

What do you need to review our parcel spend?

12 months of parcel invoices or invoice data, plus your carrier agreements. We sign an NDA where needed, and you get a free written review in 14 days.

Find out what your parcel shipping should cost

Start with a short intro call. Then send us 12 months of freight invoices. In 14 days you’ll get a free written review of your biggest savings opportunities. Built for shippers with $1M+ in annual freight spend.

No upfront fees. Paid only from savings verified on your invoices. NDA available. Or call 707-292-9754

Sources

  1. Package dimensions, size limits and weight guide. UPS, support page. Checked October 25, 2026.
  2. Learn about SmartWay. U.S. EPA SmartWay program, web page. Checked October 25, 2026.
  3. Packaging Reduction for Shippers. U.S. EPA SmartWay fact sheet EPA-420-F-19-015, March 2019. Checked October 25, 2026.
  4. Route & Network Optimization for Shippers. U.S. EPA SmartWay fact sheet EPA-420-F-19-016, March 2019. Checked October 25, 2026.
  5. SmartWay carrier performance data (spreadsheet, “Start Here” tab). U.S. EPA SmartWay program, data year 2025. Checked October 25, 2026.

Maximizer Team is not affiliated with or endorsed by the U.S. EPA. References to SmartWay describe public U.S. EPA guidance only; they are not a claim of partnership, certification or endorsement.