Smaller parcel carriers are expanding and bolstering the capabilities of their networks ahead of an expected late-year volume surge.
Alternatives to FedEx and UPS continue to gain U.S. market share each year as shippers pursue lower-cost parcel delivery options and services that fit their particular logistics needs. These companies plan to further that momentum during the peak season by investing in additional processing capacity, despite the holidays featuring plenty of uncertainty for delivery demand.
Here's a look at how three carriers — Veho, Jitsu and Gofo — have strengthened their networks before the holiday shipping rush.
Veho adds capacity in key markets
Veho has expanded its parcel handling capacity in 15 cities it serves prior to peak season, according to an October news release.
The expansion includes increasing the capacity of its Philadelphia and Indianapolis regional hubs by over 50,000 square feet combined, in addition to opening a 150,000-square-foot hub outside Atlanta.
Boston, Chicago, Dallas and Houston are among the other markets Veho is expanding in prior to peak season. The company’s capacity growth involves reorganizing or expanding its own facilities or partnering with third-party logistics providers.
“The volume of parcels flowing through Veho has doubled year-to-date, and can be expected to grow even more during the three weeks between Thanksgiving and Christmas," said Albert Silva, Veho SVP of operations, in the release. "We are expanding our existing facilities and launching over 10 new ones–all with flexible staffing models–to ensure we can meet shippers’ needs in a cost-effective way.”
Jitsu bolsters warehouse space in three cities
Jitsu has added more than 100,000 square feet of warehouse capacity in high-volume markets, including San Francisco, Philadelphia and Dallas, to improve network resiliency ahead of the holidays.
The parcel carrier said in a blog post that it's also built capabilities within its warehouse management system that enables it to handle up to three times its typical volume when needed.
"This gives us the flexibility to manage surges without compromising speed, accuracy, or visibility," Jitsu said. "We’ve also reinforced partnerships with trusted regional carriers and optimized route density to improve both delivery efficiency and sustainability."
In terms of driver capacity, Jitsu said it has started recruiting and onboarding early and will provide peak-day pay adjustments to ensure healthy availability during the holidays.
Gofo debuts East Coast hub in New Jersey
Last-mile delivery provider Gofo has opened a "Super Hub" in New Jersey, its largest facility yet at more than 400,000 square feet, according to a news release last month.
The location, which handles more than 800,000 parcels daily, will serve "as a capacity anchor for the entire East Coast" during peak periods like Black Friday and Christmas, Gofo said. The hub can absorb up to 50% of Gofo's national demand.
Gofo has been expanding its nationwide logistics capabilities with a network of over 100 hubs and stations since its founding in 2023. The company said it considers the New Jersey Super Hub to be the East Coast counterpart to its Los Angeles hub.
"Together, the two facilities form a coast-to-coast delivery backbone, connecting long-haul freight with regional last-mile delivery across major U.S. economic corridors," Gofo said.
