Are There Differences Between Major Shipping Companies?

The "big three" shipping services — Airborne Express, United

Parcel Service (UPS), and FedEx — are similar in many ways. All three provide worldwide service using their own fleets of aircraft and delivery vehicles, shipping centers, support facilities and thousands of private drop boxes. Each shipper offers a selection of guaranteed delivery options, ranging from same-day service to second- and third-day delivery.

The U.S. Postal Service (USPS) also offers next-day Express Mail delivery in addition to its traditional mail and parcel shipping services. Unlike the big three, however, the USPS provides mostly domestic Express Mail service, along with delivery to a handful of major European and Canadian cities.

Each service touts its own special capabilities. UPS is the oldest (and biggest) private shipping company, and it also offers non-express parcel delivery service to virtually every part of the world. FedEx is the largest express delivery service, operating more than 500 aircraft and nearly 91,000 vehicles worldwide. Airborne Express, while smaller than its competitors, boasts a private airport in Ohio with its own foreign trade zone and aircraft maintenance center. And although the post office is a relative newcomer to the express-delivery market, it still boasts the world's largest delivery organization.

The shipping market is highly competitive, and all of these companies offer similar services at comparable prices. You may find that one company offers better corporate rates for regular customers, or that one offers more convenient pickup service in your area than its competitors. If you ship a lot of packages that don't require express delivery, for example, UPS may be your best choice. FedEx may be a good option for companies that do a lot of international business, and the post office is a good choice for next-day domestic service. In fact, many businesses use more than one shipping company, giving them the best mix of price and service options.