Originally published in 2025. Updated April 2026 to reflect current carrier pricing trends and global shipping impacts.

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If you’re spending $1M on shipping each year, there’s a good chance you’re quietly losing six figures. Not because your team is careless. Not because your carriers are “overcharging” in obvious ways.

But because the rules of shipping have changed, and most businesses haven’t kept up.

In fact, up to 80% of businesses still overpay for shipping. And in 2026, that number is becoming more expensive (and more dangerous) than ever before.

Why This Problem Is Getting Worse, Not Better

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For years, overpaying for shipping was framed as an operational inefficiency.

Today, it’s something else entirely: a compounding financial risk driven by market shifts outside your control.

Here’s what’s changed: 

1. Carrier pricing is evolving, fast.

UPS and FedEx aren’t just raising rates—they’re fundamentally changing how they make money.

• Both UPS and FedEx have shifted to a “better, not bigger” strategy with labor force cuts and network closures, and now explicitly stating that they are prioritizing higher-margin customers and reducing lower-profit, e-commerce volume
• Both carriers in an effort to recoup lost revenue have introduced more frequent and complex pricing changes, including dozens of incremental fee adjustments beyond standard GRIs

What do these changes mean for shippers?

• Pricing is no longer predictable in any way.
• Contracts need to be revisited far more frequently than before, and
• You should be considering your network more closely, deciding what carriers fit where and how you can optimize its design to remove control from any single provider.

2. Surcharges are no longer occasional, they're constant.

Fuel surcharges used to be a line item. Now they’re a moving target.

• Fuel surcharges from UPS and FedEx have increased 3–6% in just weeks in 2026
• New per-pound surcharges have been added on key global lanes due to geopolitical instability

And critically: these costs often show up after the fact...on invoices most businesses don’t fully audit.

3. Global events are directly impacting your shipping costs

We all know that the supply chain isn't insulated from geopolitics, and this year is no different.

• The 2026 Iran war has driven oil prices sharply higher, disrupting global shipping routes and capacity
• Carriers (and even Amazon) are introducing new fuel and logistics surcharges to offset rising costs
• USPS has implemented its first-ever fuel surcharge, while private carriers have layered in additional fees

These changes are clear signals that shipping costs are now tied to global volatility, not just carrier pricing.

4. Complexity has outpaced manual processes

More fees. More variables. More volatility.

And yet many businesses are still:

• Auditing invoices manually (or not at all)
• Reviewing costs after the fact
• Operating with fragmented data

That gap is where overpayment lives. And will continue to grow without intervention.

The 4 Reasons Businesses Still Overpay (Updated for 2026)

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The core causes haven’t changed, but their impact has intensified.

1. Limited visibility into shipping spend

Shipping data lives everywhere. It's fragmented and siloed between:

• Carrier invoices
• TMS platforms
• ERP systems
• Spreadsheets

Without a unified view, it’s nearly impossible to answer simple questions like:

• What are we actually paying per package?
• Where are costs trending up?
• Which services are driving spend?

2. Single-carrier dependence

Relying on a single carrier may seem convenient, but it can reduce flexibility and increase costs over time.

A multi-carrier approach allows you to:

• Compare rates across providers
• Route shipments based on real-time performance
• Avoid being locked into one set of terms or service levels

3. Using manual processes to audit (or not doing them at all)

Shipping invoices are complex. Overcharges, service failures, and incorrect accessorials are more common than most businesses realize.

Without automated auditing:

• Refund-eligible deliveries may go unclaimed
• Contractual terms may be unenforced
• Human error in billing may slip through unnoticed

4. Service-level misuse and gut-instinct decision making

Without automation or expert guidance, businesses often default to the wrong shipping choices, costing both time and money.

Common issues include:

• Overusing express services when ground would suffice
• Guessing which service level to choose
• Failing to adjust routing or timing to optimize cost

The Cost of Doing Nothing

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In a stable market, inefficiency is manageable.

In today’s market, it compounds.

• Rising fuel costs increase surcharge exposure
• Carrier pricing changes create hidden cost shifts
• Global disruptions introduce unpredictable volatility

The result?

Overpaying for shipping isn’t just a leak, it’s a multiplier.

Here's the bottom line...

The question isn’t whether you’re overpaying.

It’s:

• How much
• Where
• And for how long

Because in 2026, the companies that gain control over shipping spend won’t just save money.

They’ll outperform the ones that don’t.

From cost center to competitive advantage

With better visibility, smarter automation, and proactive optimization, businesses can transform logistics from a blind spot into a competitive edge.

Catalyst™—built for growing shippers fills the gaps in bandwidth, plugs revenue leaks, and ensures every shipping dollar is working harder for your business.

If you’re ready to take control of your shipping spend through automated parcel audit, spend optimization and refund recovery, sign up for a free 90-day trial of Catalyst today.

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