Dive Brief:
- OnTrac has launched discount programs for shippers adjusting to tariffs and using competing services from delivery providers like UPS, according to an announcement Tuesday.
- The parcel carrier's Reciprocal Discount Program determines pricing based on a shippers’ “sourcing exposure,” providing enhanced benefits for companies that have taken steps to limit their tariff vulnerability, per the release. Meanwhile, its Ground Switcher Program offers discounts for shippers that shift volume from UPS Ground Saver or postal consolidator services.
- “Both programs respond to mounting pressure on logistics strategies once considered cost-efficient,” OnTrac said in the news release. “As tariffs climb and deferred ground options grow more volatile, retailers are seeking smarter pathways that don’t require operational overhaul.”
Dive Insight:
In a competitive pricing environment for parcel carriers, OnTrac is offering up discounts that aim to appeal to two kinds of shippers.
First are businesses looking for cost relief amid tariff-driven supply chain shifts. OnTrac's Reciprocal Discount Program factors in a shipper's import origin data before giving “a Tariff Resiliency Score” that influences discount eligibility.
The program is available through June 30 for shippers that aren’t currently using OnTrac, able to “provide basic sourcing data” and seeking cost reductions through sourcing diversification. The release did not specify the extent of the discounts for shippers that opt in.
“By linking incentives to sourcing agility, we’re seeking to help forward-thinking brands act before tariffs further impact the bottom line," Michael Cannizzo, OnTrac's chief commercial officer, said in the release.
The other type of shippers OnTrac is targeting are companies using ground shipping services like UPS Ground Saver. The offering, formerly known as SurePost, has made price and service adjustments after ending its reliance on the U.S. Postal Service for last-mile delivery.
OnTrac's Ground Switcher Program is available through Aug. 31 for businesses that currently use “a Ground Saver-type service” instead of OnTrac. Shippers switching from these services to OnTrac are seeing savings as high as 30%, according to a LinkedIn post from the carrier.
OnTrac has been pushing to fill its network with more packages after expanding its coverage to reach 70% of the U.S. population and launching seven-day delivery. Attracting additional customers with discounts could help the company rebound from what a December Moody's report called “a difficult 2024 that saw lower package volumes and competitive pricing.”
