Transporting goods via truck or train is known as ground shipping. Companies consider this for two primary reasons.
- It’s cost-effective for domestic shipping.
- It’s best for the non-urgent freight.
Cost, speed, and flexibility are the major drivers of online shopping. For domestic shipping, companies use rails to cut costs and increase delivery speed. Through existing trucks or rails, your delivery can reach places air deliveries can’t. Air and express deliveries have their own pros when it comes to quick international deliveries or deliveries across the farthest regions. They are fast but expensive at the same time.
While 75% of US shoppers prefer free shipping, companies that can’t afford to offer it use this method to cut significant shipping costs.
What is ground shipping?
Ground shipping or land shipping is transportation done via land using trucks or trains. It is considered the most affordable shipping option for domestic deliveries. Companies that ship nationally or to nearby territories mostly utilize this shipping method. However, it is often considered a slow delivery process that takes a few days to fulfill, and therefore, most companies that need to ship within a short time frame use express or air shipping rather than ground shipping.
How does ground shipping work?
Most ground shipping operations operate on a basic Hub-and-Spoke Method. Where the goods are consolidated at the central location known as a hub, and then distributed across multiple locations from there.
It’s a typical journey that looks like;
- Pickup or drop‑off at local depot
- Move to larger regional hubs
- Possibly travel by rail or cross‑country truck
- Arrive at the destination hub
- Final delivery via local truck
Why ground shipping dominates US commerce
According to Pitney Bowes U.S. Parcel Shipping Index 2023, 70% of US deliveries are shipped through ground, aka ground shipping. And why businesses love this, and why it takes such a significant % of shipping, because;
- It’s cost-effective – Up to 30-60% cheaper than expedited or air shipping
- It’s reliable – Most ground shipping networks and hubs are mature and offer frequent departures, making it helpful for small businesses with a relatively small number of daily orders.
- Capacity – Ground transportation can handle oversized/heavy items
Factors that determine ground shipping cost
There are 4 major cost factors that determine the cost of shipping.
1- Base rate
It’s the initial rate that is typically set by the carrier based on the type of method and freight you choose to use.
2- Distance charge
It’s the cost associated with the distance traveled by shipment.
Calculated using a formula:
Distance * Carrier’s rate per mile/kilometer.
3- Weight charge
It’s the cost associated with the total weight of the shipment.
Calculated using a formula:
Total weight * Rate per unit weight (pounds or kilograms).
4- Accessorial charge
It’s the cost associated with the additional service, like liftgate service, inside delivery, or handling hazardous materials.
Ground Shipping Delivery Times and Performance Standards
Current delivery timeframes by major carriers
Delivery times for ground shipping can vary a lot due to distance, how efficient the carrier is, and the type of service you choose.
UPS Ground usually delivers packages in 1-5 business days, with about 90% of shipments arriving within 3 days.
FedEx Ground and Home Delivery services also have similar delivery times of 1-5 days for most domestic addresses.
USPS Ground Advantage, which started in July 2023, offers a service that delivers packages weighing up to 70 pounds in 2-5 days. This service combines previous USPS ground options, like Retail Ground and Parcel Select Ground, to make things easier and more reliable.
DHL Ground services generally take 3-8 days for delivery, mainly focusing on international rather than domestic shipping.
Factors affecting delivery speed
Several factors affect ground shipping times beyond just distance.
- Weather, especially in winter, can delay deliveries due to poor road conditions.
- Higher package volumes can also slow delivery times during busy holiday seasons.
- Packages’ size and weight also matter; larger or heavier items may take longer to process.
Places in rural or remote areas usually have longer delivery times because of fewer delivery routes and longer distances between stops.
Ground Shipping Costs and Pricing Structure
Current Market Pricing
Ground shipping costs increased significantly in 2024 and early 2025 due to general inflation and higher operating costs.
UPS raised its rates by an average of 5.9% starting on December 23, 2024, which was the seventh increase in fuel surcharges for the year.
FedEx also increased its fuel surcharges multiple times, with ground fuel surcharges rising 12% from the first quarter of 2024 to the first quarter of 2025, even though diesel prices dropped by 8.4% during that time.
Cost Factors and Surcharges
Fuel surcharges are a major cost that changes independently of base shipping rates. Currently, domestic ground fuel surcharges vary from 20.5% to over 30% of base freight charges, depending on the carrier and service. These surcharges are updated weekly based on the average national diesel fuel prices, leading to varying total shipping costs.
Other fees also affect ground shipping costs, such as charges for residential delivery, oversized packages, and remote delivery areas. FedEx has also increased late payment fees from 8% to 9.9% of overdue invoices.
Common Ground Shipping Problems
1- Delivery delays and performance issues
Many users feel frustrated with ground shipping, especially during busy times and bad weather. During those times, their packages stay for days at distribution centers without clear reasons and tracking information.
These delays can exceed the delivery times promised by the carriers, making it difficult for businesses that depend on ground shipping to manage customer service effectively.
2- Tracking and communication problems
Ground shipping tracking systems can sometimes give incorrect updates, such as marking packages as “out for delivery” when they are still at a warehouse. This problem can make customers feel anxious and cause them to lose trust in the service. Additionally, customer support often gives unclear reasons for delays, leaving shippers without clear timelines or other options.
3- Service quality
In-ground shipping, service quality may vary under certain circumstances. Circumstances like bad weather, public emergencies, or operational issues can cause delays in specific areas while other regions may receive efficient, on-time deliveries.
For example, rural and remote areas struggle to receive reliable ground shipping when carriers prioritize urban routes with higher package volumes.
4- Seasonal volume spike
Another problem with ground shipping is seasonal shipment spikes. For example, shipping services face major delays during the holiday season as carriers deal with increased package volumes.
Best Practices for Businesses Using Ground Shipping
1- Careful planning and setting realistic customer expectations
To successfully implement ground shipping, businesses must plan carefully and set realistic customer expectations. They should create clear shipping policies considering possible delays and communicate delivery timelines cautiously to prevent disappointing customers. Planning ahead for busy seasons helps keep service quality high during peak times.
2- Cost optimization
Businesses can lower ground shipping costs using some proven and widely used strategies.
- They can negotiate discounts with carriers to ship more packages, which saves money.
- They can use multiple fulfillment centers, which can also help reduce shipping distances and costs.
- Also, using the right-sized packaging helps avoid extra fees related to package size.
3- Performance monitoring and quality control
Regularly checking performance helps spot service problems before they affect customer satisfaction. Tracking metrics such as on-time delivery rates, damage rates, and customer complaints gives information for evaluating carrier performance.
4- Using the right tech
Modern shipping software makes ground shipping easier by automating carrier selection, comparing rates, and integrating tracking. These systems help businesses find the best shipping options for each shipment based on cost, speed, and reliability. Real-time tracking keeps customers updated on delivery progress, which reduces customer service inquiries.
End note
Apart from a few problems, the commerce industry might face, ground shipping is still the most widely used method. Choose the best carrier service that aligns with your budget, other requirements, and customer base.
FAQs
How many days does ground shipping take?
Ground shipping usually takes 1-5 business days, depending on the distance, carrier, and package size.
How to track ground shipping?
You can track ground shipment with a tracking/bill or lading number issued by a tracking company for that particular shipment.
Which companies offer ground shipping?
Multiple companies, including FedEx, USPS, and UPS, offer ground shipping, along with others.
