Can Postal Service consolidators capitalize on market ‘chaos’?

This year presents a mixture of both upheaval and opportunity for shipping companies that closely partner with the U.S. Postal Service.

The Postal Service notified consolidators, which sort and send shippers’ packages to the agency for final-mile delivery, in 2024 of two large-scale changes it would make to advance Postmaster General Louis DeJoy’s “Delivering for America” overhaul. Parcel delivery experts warned the moves, focused on consolidators’ use of the Postal Service’s network and lightweight package pricing, could challenge service levels and increase costs.

As the dust has settled, leaders at top consolidators — DHL eCommerce, OSM Worldwide and ACI Logistix — told Supply Chain Dive this month how their companies have adapted and are pursuing growth in 2025. Adjustments include testing deliveries with other carriers and pursuing heavier packages, bringing more change for a slice of the parcel sector that has navigated plenty over the past year.

“There’s a bit of chaos in the market right now, and chaos creates opportunity, and that’s what we’re looking forward to,” said Lee Spratt, DHL eCommerce’s Americas CEO.

Consolidators push volume upstream

One Postal Service change could provide some efficiency benefits for consolidators, although the industry is watching closely to see if it will pressure on-time delivery reliability.

The agency officially eliminated contracted rate discounts Jan. 1 for consolidators bringing packages directly to delivery units, or post offices closest to destination addresses, finalizing a process that began last year.

The Postal Service long allowed delivery unit injection so it didn’t have to bear added costs for processing and handling extra parcels. But under DeJoy, the agency wants consolidators’ volume to instead be brought into its network earlier in the shipping process. The goal is to maximize the flow of volume and make more ef…