Shippers spread parcel volume as carrier surcharges climb
Surcharges on big and bulky packages land unpredictably. Tractor Supply's final-mile chief says multiple carriers let the retailer redirect shipments when cost rises
CHICAGO — Parcel shippers spent years handing one national carrier all their volume and negotiating once. At FarEye’s Last Mile Leaders America 2026 conference in August, panelists described why shippers are moving away from single-carrier agreements. Rising surcharges are part of the reason. Software that lets shippers manage multiple carriers has also made the shift easier.
Kyle Langley, Vice President of Final Mile at Tractor Supply Co., has watched that shift from the shipper side over about 15 years at the company. The rural lifestyle retailer has almost 2,500 stores in 49 states, and many of its delivery customers live on 5- to 15-acre properties. Tractor Supply now ships through parcel carriers, gig delivery networks and its own private fleet.
Langley shared the stage with Nick Costides, founder of C-Level Advisory and retired global president of information technology at UPS, and Brock Johns, Director Analyst at Gartner.
The panel moderator cited FarEye’s Eye on the Last Mile America 2026 report, released at the event, which found that 45.8% of U.S. delivery operators said delivery costs are rising faster than revenue. Including operators whose costs are keeping pace, 88% said delivery costs are growing as fast as revenue or faster. The same survey found that median last-mile costs rose 12% for a second year.
This story was originally published by FreightWaves. Read the full story at FreightWaves →
Conversation