Lower Shipping Costs for 3PLs: Insights from Tusk Logistics

Lower shipping costs for 3PLs sound like an easy win. But what happens when those savings come at the expense of service, customer satisfaction, or even someone’s job?

On this episode of The New Warehouse Podcast, Kevin welcomes back Ben Emmrich, co-founder and CEO of Tusk Logistics, to discuss how alternative carriers are changing parcel shipping and what operators should consider as they plan for 2027.

When Lower Rates Put Operations at Risk

Tusk’s 2026 benchmark report found that 40% of non-adopters still consider alternative carriers too risky. Emmrich understands the hesitation. “I know two operators this year who were fired,” he says. Both had moved volume to alternative carriers offering attractive rates. When service fell short, they lacked the visibility to recognize problems early enough.

The experience points to a weakness in how some operators evaluate carriers. Emmrich describes companies that test a low-cost option for two weeks, encounter problems, and abandon alternatives altogether. “Ugh, we tried that once. We’re not doing it again.” In doing so, they may overlook carriers better suited to their operation.

Emmrich says operators should know what they want from a carrier before putting one to the test. “Okay, costs go down. Okay, great, but what about time in transit? What about service quality? What about tracking experience?” He offers an example of how that could work: take a warehouse in suburban Chicago, direct half its shipments to two alternative carriers serving Midwest markets, and compare their rates and performance against FedEx over six weeks.

Finding Margin Beyond the Carrier Contract

Negotiating better parcel rates is one way for 3PLs to protect margins. Emmrich thinks operators are overlooking another. “Like right now, I think operators live in the world of I get all my margin by what numbers are on a piece of paper in my carrier contract.”

Zone skipping creates another opportunity to reduce shipping costs. By consolidating parcels headed to the same region, 3PLs can move them closer to their final destinations before handing them off to local carriers for delivery. This can reduce the number of expensive shipping zones each parcel travels through.

Emmrich describes a hypothetical 3PL operation that reduces shipping costs by 40% through zone skipping. The operator could pass 25% of the savings to its customer and keep the remaining 15 percentage points. “I just lowered your cost by 25%, AKA you get to keep 15.”

Larger 3PLs already use zone skipping on major transportation lanes. Mid-sized operators haven’t necessarily achieved that scale. Emmrich also notes that air transportation works particularly well for lightweight parcels, while heavier shipments can quickly erase the cost advantage. “What happens when you’re selling basketball shoes and each pair of shoes is eight and a half pounds?”

More Carriers Can Mean More Problems

A warehouse might have access to five competitive alternative carriers, but that doesn’t mean it should use all five. “I would say the sweet spot for most buildings of scale is three alternative carriers per building.” Emmrich says the number depends on facility size, automation, and the work required to sort parcels.

At Tusk, shippers currently print carrier-specific labels and sort parcels before pickup. Some warehouses handle this easily. Others struggle with missorts. When a third carrier accounts for only 10% of shipments, Emmrich says it may be better to simplify. “We might drop that third carrier, go to two because the sort’s a lot easier.”

Emmrich has some timely advice for operators heading into peak season. “Don’t add new carriers right now is my advice, unless there’s a crisis of some sort.” For warehouses that added carriers earlier in the year, he stresses the need to get sorting procedures right and make sure customer service teams know where to file claims and how to handle missing or damaged shipments. He also sees Q4 as a chance to negotiate with alternative carriers, giving operators competing rate cards to bring to the table when national carriers announce their 2027 rate increases.

Key Takeaways on Lower Shipping Costs for 3PLs

• A great shipping rate won’t make up for poor service, especially when performance problems go unnoticed.
• Test new carriers against your current provider to see how they compare on cost, delivery times, and service.
• Zone skipping can lower shipping costs and give 3PLs more room for margin, particularly on high-volume lanes.
• More carriers mean more sorting, and even a small amount of additional volume can create problems on the warehouse floor.
• Use Q4 to get existing carrier operations ready for peak season while negotiating rates for 2027.

Listen to the episode below and leave your thoughts in the comments.

Guest Information

For more information on Tusk Logistics, click here.

To connect with Ben Emmrich on LinkedIn, click here.

For more information about lower shipping costs for 3PLs, check out the podcasts below. 

Peak Season Planning with Flexible Warehouse Automation

Middle Mile Shipping Unlocks Faster Parcel Deliveries

Parcel Shipping Operations: Moving Packages in Minutes with DHL