Carrier Terms Intermediate

Regional Carrier

Also known as: Regional Parcel Carrier, Local Carrier, Regional Shipper

Definition

Regional carriers focus on specific geographic areas rather than nationwide coverage. They often beat national carriers on price and speed within their service regions.

Major Regional Carriers

Carrier Region
OnTrac Western US
LSO Southwest
Spee-Dee Upper Midwest
Eastern Connection Northeast
GSO California

Regional vs. National Carriers

Regional National (UPS/FedEx)
Limited geography Nationwide
Often cheaper Higher rates
Faster in region Consistent everywhere
Flexible service Standardized
Less brand recognition Known by all

Benefits of Regional Carriers

  • 10-30% cost savings
  • Same-day or next-day in region
  • More flexible cutoff times
  • Personal service relationships
  • Residential delivery focus

When to Use Regional Carriers

  • High volume to specific regions
  • Cost reduction priority
  • Speed in regional lanes
  • Overflow capacity needs
  • Last mile specialization

Integration Considerations

  • API/tech capabilities vary
  • Tracking quality differs
  • Customer recognition lower
  • Claims processes differ
  • May need multiple regionals

Building a Regional Strategy

  1. Analyze destination density
  2. Identify regional coverage
  3. Test with sample volume
  4. Compare service levels
  5. Integrate technically
  6. Monitor performance
  7. Scale successful lanes
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