OnTrac rolls out Dynamic Savings to lower rates when capacity free
OnTrac announced on Monday that it is piloting a Dynamic Savings program that offers lower shipping rates when its network has available capacity. The Dynamic Savings option, powered by pricing platform Onrout, appears as an extra choice in shippers' rate‑shopping workflow and returns a label at the shipper’s target price if the network can meet it.
The system evaluates OnTrac's current network conditions together with the package's characteristics, origin and destination to decide whether it can meet the shipper's target price. To join the pilot, shippers must already have OnTrac pickup services and meet a minimum weekly volume, with the Dynamic Savings rate applying only to volume above those commitments. Testing with additional shippers is slated to start in Q1 2027, while OnTrac plans to increase its network capacity by 25% to 30% in 2026, focusing much of that growth on Northeast operations. The carrier opened three new facilities in Pennsylvania, Massachusetts and Texas earlier this year and expects to have a capacity‑expansion plan for 2027 ready by January or February.
“We're rebuilding our entire pricing and billing stack right now, and that unlocks our ability to be a lot more agile in the way we price for our customers and where we can meet them where they are,” Vijay Ramachandran, VP of marketing, product strategy and marketplaces, OnTrac said.
“I think people are really finally frustrated enough with UPS and FedEx,” Mike Brown, CEO, OnTrac said.
For years, major parcel carriers like FedEx and UPS have used surcharges to dynamically adjust prices during high‑demand periods, but in those programs the price only ever goes up. Meanwhile, alternative carriers continue to grow their market share by volume and strengthen their capabilities to woo shippers.
What we know
Parcel carrier OnTrac is piloting a program for customers that opens the door for lower shipping rates when the company's network has available capacity, per an announcement Monday.
Testing with additional shippers is slated to start in Q1 2027.
OnTrac will also add 25% to 30% more capacity in its network in 2026, Brown said, with much of that additional space going to the carrier's Northeast operations.
The company announced the opening of three facilities in Pennsylvania, Massachusetts and Texas earlier this year.
Participants must have existing pickup services and minimum weekly volume levels through OnTrac, and the program is intended for incremental volume above minimum commitments.