FedEx braces for 50% cut in Postal Service air contract
FedEx Express faces more headwinds in its effort to improve profitability as the U.S. Postal Service prepares to drop air routes from contracted service.
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Unlike freight shipping, which moves goods in large quantities (whole truckloads or shipping containers, for example), parcel shipping moves individual goods essentially one at a time (usually by truck or plane). While both focus on the movement of goods, transportation methods, level of service, and cost can be very different between the two services. Freight is almost exclusively used by commercial shippers, while small- to medium-sized retail shippers usually use parcel freight.
Parcel delivery is a cost-effective, efficient, and fast option for businesses shipping items up to 150 pounds. And, unlike freight shipping, packages are delivered directly to a residential or business address. Check back here for the latest parcel freight industry news.
FedEx Express faces more headwinds in its effort to improve profitability as the U.S. Postal Service prepares to drop air routes from contracted service.
Thefts from a storage facility have raised concerns from a government watchdog agency as the Postal Service moves to electrify its delivery fleet.
FedEx Express wants to compensate for a surplus of pilots by lowering guaranteed pay and offering severance packages once a new labor contract is reached. Meanwhile, mechanics are agitating to unionize.
The Teamsters union doesn’t expect a major impact on employment levels from UPS’ closure of a Kentucky sort facility.
Labor peace was won at what will be higher costs for shippers and carriers.
FedEx says it is confident that it has maintained the parcel volumes that moved from UPS.
FedEx’s color-coded air network is designed to bolster FedEx Express’ margins amid continued macro weakness and other headwinds.
DHL ground support workers at the company’s Cincinnati airport hub ended their strike after an agreement on a new contract.
Despite posting operating and net income gains in its fiscal 2024 second quarter, FedEx cut its full-year revenue forecast.
FedEx is following its rivals’ leads with a no-box, no-label returns program.
Striking airport workers at the DHL Express hub outside Cincinnati have picked up support from union members around the country, slowing customer shipments.
UPS’ ground delivery surcharge increase comes amid a continued decline in diesel pump prices.
Less demand and more flexible delivery schedules were key factors in higher performance by UPS and Fedex during the Black Friday and Cyber Monday cycle.
The Teamsters union warned of a strike at UPS’ air and ground hubs if workers were not reinstated.
A former contractor alleges that it was fraudulently induced to sign a contract with FedEx Ground.
UPS’ levies drop to 15% from 15.25%.
Postal Service contractor Matheson Trucking and wholly owned subsidiaries Matheson Flight Extenders and Matheson Postal Services of Sacramento are winding down operations after six decades in business.
UPS has been given until Monday to address the alleged firing of 35 union workers at its ground hub.
Nearly half of survey respondents said that delivery estimates are “potentially unreliable.”
Reelables says technology will eliminate the need for manual label scanning across the supply chain.
Uber’s new feature allows shoppers to arrange for drivers to pick up purchased items and deliver them to a residence.
DHL Express announced high-level personnel changes in its global organization.
Effective Monday, UPS’ surcharge levels for domestic ground parcel and SurePost services will rise by 50 basis points.
Shippers can still expect sizable discounts off OnTrac’s tariff.
Changes in ZIP codes mean that delivery area surcharges will apply to a larger share of the U.S. population.
The U.S. Postal Service is seeking helpers to ensure needy children and families have gifts under the tree on Christmas morning through its Operation Santa program.
Can package sizing be improved? It’s been a long, slow process.
The big boys in parcel delivery are hammering each other for business, consultants say. That’s great news for shippers.
Postal Service tariff rates are proposed to rise between 5.4% and 5.9%, effective Jan. 21.
UPS’ new Supply Chain Symphony platform integrates previously siloed platforms.
The agency is poised to discount rates on shorter-haul parcel services.
Dozens of truck drivers at 10 Roads Express, a major Postal Service contractor, have voted to join the Teamsters in recent months.
At the F3: Future of Freight Festival, strategic adviser Alan Gershenhorn explained how market changes are affecting different transport modes.
Revenue and earnings fell sharply at DHL’s Express and Global Forwarding units.
The U.S. Supreme Court let stand a lower court ruling denying a driver’s request to allow him to operate a smaller vehicle with a softer suspension.
Teamsters union leadership may be willing to accept lost rank-and-file jobs in return for increases in new positions, a labor expert says.
A source wonders if UPS’ new offering is a reconstituted version of an earlier stab at quick delivery.
Amazon’s EPS handily beat estimates, while operating and net income posted four- and three-bagger gains.
UPS’ third-quarter results reflect struggles with macro weakness, volume diversions and higher labor costs.
UPS said it hopes to scale service to as many locations as possible by year’s end.
UPS has set holiday shipping deadlines for deliveries on Dec. 23 or earlier.
TFI’s overall third-quarter results reflect a weak macro environment.
FedEx Ground two-day shipments must ship by Dec. 20 to arrive on or before Christmas Eve.
A Shipware analysis finds the rate and surcharge tables of UPS and FedEx look unsurprisingly alike.
OSM follows the lead of work-share partner U.S. Postal Service in not imposing peak-season delivery surcharges.
Not everyone will agree with the results of project44’s on-time parcel-delivery performance survey, the survey’s leader says.
A report by project44 said delivery performance was the highest since March 2020.
Uber drivers will pick up return parcels and deliver them to postal, FedEx and UPS locations.
DHL Express rate hikes take effect Jan. 1.
Postal Service auditors have advised the agency to boost oversight of contract trucking companies.
Pitney Bowes President and CEO Marc Lautenbach had been at the center of a proxy fight with Hestia.
The on-paper benefits of out-of-home delivery are clear. Customer acceptance is somewhat less so.
Rebates from UPS are designed to offset early-termination penalties from other carriers if shippers return to UPS.
A ShipStation survey found U.S. consumers are more concerned about package theft than late deliveries.
FedEx partners with an AI-powered robotics firm to load FedEx Ground trailers.
UPS is looking to fill full- and part-time seasonal positions.
There may be a tussle to capture peak surcharge revenue on those shippers that pay the levies.
FedEx’s fiscal first-quarter results give efficiency the nod over growth. (Photo: Jim Allen/FreightWaves)
FedEx beat analysts’ estimates despite downgrading its full-year revenue outlook.
A new service called Roadie Direct integrates technology to provide fast delivery from warehouse locations.
Josh Taylor of Shipware shares his expertise on how dynamic pricing will impact the way parcel-delivery services will be bought and sold.
Parcel shipping is a different world today thanks to increasing demand and complex delivery infrastructure.
The Postal Service is adding 10 million parcels’ worth of processing capacity to its network this peak season.
Clearjet combines narrowbody aircraft lift and regional ground parcel delivery carriers to offer air service at ground rates.
OnTrac’s holiday surcharges will be similar to those of FedEx and UPS.
DeliveryDefense assesses delivery risk levels in shipping to certain addresses in various regions.
Lisa Celli was excited to start her first day on Jan. 5 as a contractor delivering mail for the U.S. Postal Service in the small unincorporated town in California where she and her husband live. However, less than 24 hours after finishing her first route for Ameritrans Express, she received an alarming email stating the contract delivery company was taking “drastic action.”
The new Amazon Shipping service is available to big shippers in 15 major markets.
A higher range of general rate increases is here to stay, consultants said at the Parcel Forum.
UPS’ main levies are slightly above FedEx’s levels.
UPS will likely match FedEx’s rate moves unless labor cost pressures force its hand.
UPS’ noncontract rates for 2024 will take effect Dec. 26.
Green Mountain and Reveel plan to offer complimentary services to the parcel shipping market.
FedEx’s 2024 rate increases highlight the many moving parts that UPS will need to manage.
U.S. Postal Service contractor Matheson Flight Extenders (MFE) filed paperwork Thursday stating that it plans to eliminate 305 jobs and close its sorting facility in Chicopee, Massachusetts, by the end of October, bringing to about 1,000 the total job cuts it has announced in recent days.
FedEx is levying a 5.9% general rate increase on Express and Ground shipments in a possible attempt to undercut UPS.
Expedited delivery provider Priority Courier Experts received a strategic investment from private equity firm Trident.
The new agreement passed by the largest margin in the history of UPS-Teamsters contracts.
Automated equipment put to work for the U.S. Postal Service failed to achieve projected savings, according to the agency’s watchdog.
Effective Sept. 4, all FedEx surcharges will be known as “demand” levies.
Shippers are exploring new technologies to mitigate rising costs and hit sustainability goals, but to maximize results they need to have a rock-solid foundation of data and a streamlined dimensioning process.
The counting of Teamsters’ ballots to determine whether the union’s tentative contract with UPS will be ratified is expected to be completed by midafternoon Tuesday.
U.S. Postal Service contractor Matheson Flight Extenders (MFE), which operates 44 mail sorting and terminal handling services across the country, filed paperwork this week stating that it plans to cut more than 660 jobs at two of its facilities in Atlanta and in Brandywine, Maryland, by Oct. 15.
With capacity far in excess of demand, the parcel market is in for a very uncertain future.
Amazon Shipping appears to cater to businesses that may want to use the company just for parcel deliveries.
UPS’ CEO announced that drivers will be making $170,000 a year in pay and benefits by the end of a five-year employment contract. This is just the beginning for jobs in the physical economy.
The U.S. Postal Service’s non-GAAP loss nearly doubled year over year, while shipping volume was down slightly and revenue was flat.
Once the world’s hottest parcel market, China hit the skids in 2022 as the economy experienced a frail recovery from the pandemic, a Pitney Bowes report said.
About 1 million daily packages were diverted from UPS and 200,000 more did not enter the system due to lost sales.
UPS’ full-year guidance change reflects the volume and cost impact from labor negotiations with the Teamsters.
Spencer Patton says a widening wage and benefit gap with rival UPS will make it hard for FedEx Ground contractors to recruit qualified drivers.
Amazon’s earnings per share of 65 cents nearly doubled consensus estimates.
Deutsche Bank’s Amit Mehrotra says cumulative 8.8% per-package increases over five years should balance out elevated labor costs for the UPS contract duration.
DHL Group forecasts $7.7 billion in earnings before interest and taxes should a recovery take hold early in the second half.
Yellow’s demise is a “huge benefit for our industry,” TFI International CEO Bedard says.
Teamsters local unions representing 340,000 full- and part-time workers at UPS Inc. voted Monday to endorse the tentative five-year agreement.
About half of diverted parcels, almost exclusively to FedEx, will not return to UPS, consultancy ShipMatrix says.