Regional Carriers: What You Need to Know

Are rising delivery costs and limited flexibility hurting your business? With retail eCommerce sales estimated to exceed 6.3 trillion USD globally, there's now a demand for faster and more cost-effective shipping methods, especially for small businesses. The secret? Regional carriers. 

Regional carriers offer faster, more personalized service at a lower cost. They are an efficient alternative to national providers, especially if you're focused on local markets. 

Want to learn how to streamline your shipping process and save money? Here's everything you need to know about regional carriers, their pros and cons, and why you should consider one for your business.

What Is a Regional Carrier?

Regional carriers provide delivery services within specific geographic regions or areas, typically within a particular state or neighboring states. These carriers have fast, reliable, cost-effective services for businesses that usually ship goods within a region. 

Because regional carriers specialize in delivery services for a specific area, they:

• Understand local routes, regulations, and conditions better
• Provide efficient shipping solutions
• Offer highly personalized customer service and more flexibility

Regional Carrier vs National Carrier: What's the Difference?

Regional and national carriers differ in coverage, delivery speed, customer service, and more. Here are the main differences between the two:

Coverage

Regional carriers operate only within a limited geographic area, such as a city, state, or neighboring states. They focus on short-haul deliveries within their region, so they’re the perfect option if you regularly ship there.

On the other hand, national carriers have a broader geographic reach since they provide shipping services nationwide and sometimes even internationally. That said, they are ideal for long-haul or cross-country deliveries. 

Delivery time

Since regional carriers limit their services to select areas, they offer faster deliveries within their area. They can provide same-day or next-day services. Regional carriers also focus on optimized local routes for short-distance deliveries. 

National carriers may not be the fastest option for short-haul shipments. However, they offer more options for delivery speeds, like overnight, two-day, or standard shipping. Depending on the shipping method and the distance, national carrier deliveries can take a day or up to two weeks. 

Customer service

Because they operate in a smaller area, regional carriers often provide personalized customer service with dedicated account managers or customer support. They are also more flexible and responsive to customer needs and requests.

Meanwhile, national carriers only offer standardized customer service, which may be less personalized given their larger scale. Customers are usually directed to online support platforms or call centers. Unlike regional carriers, national carriers have less flexibility in accommodating special requests. 

Service specialization

Regional carriers offer more customizable or flexible services depending on customers' specific needs, such as special handling of goods or delivery instructions. Most regional carriers also offer white-glove services, ensuring that items are handled carefully throughout delivery.

National carriers offer broad services ranging from standard to overnight delivery. However, they provide less flexibility for unique delivery requests. Although they may offer white-glove services, these may only be available for specific regions.

Costs

Regional carriers usually charge lower for shipping routes because of their limited coverage. They focus on a specific location, so they have shorter routes and lower operational and labor costs. 

Meanwhile, national carriers usually charge more for shipping due to their extensive service areas and higher overhead costs. They also have a more standardized pricing structure that considers surcharges and fuel fees.

When Should You Use Regional Carriers?

Still unsure if a regional carrier is right for you? Here are questions to ask when it’s best to use a regional carrier:

• Do you need faster delivery for short-distance shipments, such as same-day or next-day delivery?
• Do you want cost-effective shipping for local or regional deliveries and avoid higher national carrier fees?
• Are you seeking a carrier with local market knowledge for better route optimization and customer satisfaction?
• Does your business operate within a specific geographic region?
• Do you prefer more flexible pricing or want to negotiate customized rates for regular shipments?
• Do you need responsive customer service and closer communication with your shipping provider?

If you’ve said yes to most questions, choosing a regional carrier over a national carrier may be beneficial for you!

What Areas Do Regional Carriers Cover?

Here’s a map of regional carriers and the areas they cover to help you better understand where they operate.

‍

Based on the map:

• OnTrac/Laser Ship is available in most states
• Lone Star Overnight (LSO) serves the South Central states
• CDL Last Mile Solutions serves most of the East Coast states
• Pitt Ohio covers most of the Mid-Atlantic and Midwest states
• Spee-Dee offers services for the Upper Midwest states
• Global Logistics Services (GLS) services most states in the West Coast

Remember: when choosing a regional carrier, it’s best to check which specific areas the carrier covers.

Pros and Cons of Using Regional Carriers

The benefits of regional carriers lie in their local expertise and delivery times, but they also face challenges in terms of capacity and resources. Here are the pros and cons of using regional carriers: 

Pros 

• Faster Delivery Times: Regional carriers can offer same-day or next-day delivery because they focus on one area. They are familiar with the local area and can use the most efficient delivery routes for faster deliveries.

• Local Expertise: Regional carriers better understand the local area's roads, traffic conditions, and possible delivery challenges than national carriers. They can optimize routes to avoid roadblocks, making delivery time quicker and more efficient. Plus, regional carriers know local customer behaviors and preferences, so they can tailor delivery solutions accordingly.

• Cost Efficiency: Since they operate in a smaller area, regional carriers’ operational costs are lower than national carriers. That’s why they can offer more competitive pricing. They are also more cost-efficient for short-distance shipments and can charge lower or no surcharges, such as fuel fees. 

• Personalized Services: Regional carriers offer flexible and customized services based on their clients' unique needs. Most of them also offer white-glove services, which aren't readily available with national carriers. 

• Environmentally friendly: Regional areas operate within a limited area and optimize their routes to avoid congestion, leading to lower fuel consumption. They also use smaller distribution hubs and vehicles, so products travel fewer distances from distribution centers to customers. 

Cons

• Effect on Tracking Capabilities: Regional carriers often lack the advanced technology that national carriers provide. Although they offer basic tracking, it may not be as comprehensive as the ones provided by larger carriers. This could make it difficult for businesses and customers to track their packages precisely.

• Fewer Service Options: Compared to national carriers with a broad range of services, most regional carriers have a simpler service portfolio. They typically offer short-distance and local deliveries and may not offer international shipping or special freight services. 

• Limited Capacity: Regional carriers usually have a smaller fleet of vehicles, which limits the number of deliveries they can handle daily. This limited capacity may lead to delays and longer delivery times during high-demand seasons like Black Friday or Christmas.

• Minimal Resources: Because regional carriers have limited capacity, they also have fewer warehouses and distribution hubs. Their smaller resources may also mean longer processing times compared to national carriers with a wide network of facilities.

Regional Carrier Alternatives

Not all situations require the use of a regional carrier. Sometimes, it’s better to choose an alternative depending on your shipping volume. If you find yourself in one or more of these situations below, finding another carrier option might be your best bet: 

• You need shipments across multiple states or regions without needing handoffs
• You have large, heavy, or high-volume shipments
• You want real-time tracking options for businesses requiring detailed shipment visibility
• You need carriers that can handle large capacity during high-demand seasons
• You have hazardous materials or temperature-controlled goods

That said, here are other options to consider aside from regional carriers:

• Courier Services: Local couriers and bike messengers specialize in ultra-fast delivery within cities or local areas and offer tailored delivery solutions. Although quick, same-day services can be costly, and they usually handle small parcels and documents.

• Third-party Logistics (3PL): 3PL providers handle everything, from warehousing and inventory management to order fulfillment. Plus, they offer scalable solutions for businesses. However, this could be expensive, especially for smaller businesses or low shipping volumes.

• Freight Forwarders: Freight forwarders are ideal for businesses that ship heavy goods or large items. They can be costly for smaller parcel deliveries.

• Peer-to-Peer (P2P) Delivery Networks: P2P networks excel in same-day and last-mile delivery—perfect for businesses needing local and urgent shipments. However, there's a risk of package mishandling and a lack of sophisticated tracking.

Let iDrive Help You Find the Best Shipping Solution

To wrap up, regional carriers are a good option for businesses focusing on local markets or requiring fast, efficient, and flexible delivery solutions within a specific area. They have lower shipping rates compared to national carriers and have better knowledge of local routes and customer preferences.

Want to know if regional carriers are suitable for your eCommerce business? Contact iDrive Logistics today, and we’ll help you find the right solution to your logistics needs.