UPS Reinvents LTL Freight with New Pricing Options

Although UPS no longer owns a dedicated less-than-truckload (LTL) subsidiary, the company continues to innovate in freight solutions. This week, UPS introduced UPS Ground Saver and UPS Ground with Freight Pricing as part of a broader strategy to compete more aggressively in the evolving delivery landscape.
UPS Ground with Freight Pricing is tailored for shipments over 150 pounds—typically palletized freight handled by LTL carriers. This move positions UPS as potentially the only small package carrier offering parcel-like pricing for LTL shipments, providing a significant market differentiator. UPS CEO Carol B. Tomé emphasized that this product enhances UPS’s competitive edge in freight services.
UPS Ground Saver is designed for non-urgent shipments and offers a lower-cost alternative to standard UPS Ground. It targets direct-to-consumer brands and online retailers looking to reduce shipping costs without sacrificing reliability. Packages are delivered via the existing UPS network, with transit times about one to two days longer than standard ground service, making it an attractive option for cost-conscious shippers.
While UPS has divested its LTL subsidiary, its strategic focus remains on broadening its freight offerings. Meanwhile, FedEx, its major competitor, still owns its own LTL carrier, maintaining a different approach to the freight market.