US Postal and Shipping
Table of Contents
Shipping in the USA relies on major carriers (USPS, UPS, FedEx) and there are smaller carriers too. The most expensive part of shipping something is at the last mile. i.e. from central collection station to the final house address. Organization like Amazon use their own shipping system from warehouses to local delivery stations and then use traditional shipping provides (e.g. USPS) for the last mile delivery.
1. USPS (United States Postal Service)
- Independent federal governmental agency with a constitutional mandate to provide postage and shipping to every part of USA.
- Self-financing through postage and services; generally receives no direct taxpayer funding for operations.
- Most economical for small and lightweight parcels (Ground Advantage, Priority Mail).
One unique thing is that, USPS has monopoly by law on non-urgent letter mail service. No other provider is allowed to provide this service cheaper than USPS. USPS also has the requirement that it has to provide mail service to even the most remote parts of USA. This special provision of monopoly helps fund its operations.
Private carriers (like FedEx/UPS) can deliver letters only if they are "extremely urgent" (and priced accordingly, typically six times the First-Class rate or greater than $3.00), or if the letter accompanies related cargo.
2. UPS (United Parcel Service) & FedEx (Federal Express)
- Major private corporations and global competitors.
- UPS Focus: Known as a reliable ground shipping powerhouse for domestic parcel delivery. Offers extensive logistics and air express services (Next Day Air).
- FedEx Focus: Built on express air freight, speed, and time-definite deliveries (major hub in Memphis). Also provides robust ground service (FedEx Ground).
- International: Both offer comprehensive international shipping to over 220 countries, including priority (1-3 days) and economy options.
3. Other providers
- Amazon Logistics
- Mainly for amazon store but starting to open for other businesses too,
- Fulfillment Centers (FCs) -> Sortation Centers -> Amazon Air/Trucks -> local Delivery Stations (DSs),
- Last Mile: Primarily handled by Amazon's internal network of Delivery Service Partners (DSPs) and Flex drivers, supplemented by traditional carriers like USPS for specific routes.
- DHL
- A major global logistics company,
- Go-to option for cross-border shipments, especially those between the U.S. and Europe.
- OnTrac
- A regional carrier operating primarily in the West/Midwest, LaserShip in the East).
- LaserShip
- A Regional carrier operating primarily in the East.
- XPO Logistics
- Specializes in freight logistics,
- Focuses heavily on business-to-business transport.