FedEx cost cuts outrunning revenue weakness, for now
FedEx’s fiscal first-quarter results give efficiency the nod over growth. (Photo: Jim Allen/FreightWaves)
Stay Up to Date on the Parcel Industry
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’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.
Same-day or next-day Prime deliveries are four times greater than in 2019, Amazon’s Herrington says.
AFS Logistics CEO Tom Nightingale says that UPS’ efficiencies can’t offset “astronomical” cost increases alone.
Growing wage disparity between carriers may fuel resentment among FedEx Ground drivers, Alan Amling argues.
A tentative contract between UPS and the Teamsters doubles wage increases for part-time workers over the current pact.
As UPS labor negotiations are set to resume, the Teamsters gather for a rally Saturday in Atlanta.
It will be difficult, if not impossible, to avoid a mess if shippers haven’t laid out contingencies for a Teamsters strike against UPS.
FedEx will focus its resources on shippers who use both it and UPS, Shipware’s Karamcheti says.
Democrats said they respect workers’ rights to strike in the event negotiations between the Teamsters and UPS fail.
The Teamsters union says UPS bowed to union pressure to resume talks. UPS says it is “pleased to be back” at the table.
Union pilots at UPS are ready to show solidarity with Teamsters workers if there is a strike, which would ground UPS Airlines.
The hiring of John W. Dietrich as CFO is part of a broad finance revamp at FedEx.
Work at UPS may continue past July 31 should the Teamsters’ rank and file need to weigh contract terms.
UPS’ nonunion employees have begun training for a possible work stoppage.
Thousands of driver and package handler jobs could be lost if the Teamsters strike UPS, the head of consultancy ShipMatrix says.
DHL Express cut the ribbon Thursday on the first hub ever opened in Atlanta by an air express carrier.
FedEx is encouraging UPS shippers to get off the fence today. It is also setting policies for onboarding.
Single-sourcing of carriers doesn’t guarantee the best prices, experts say.
No new talks are scheduled after the Teamsters rejected a UPS proposal.
The Teamsters on Friday said “significant movement” being made with UPS, but that it will not prevent them from continuing to exercise “leverage.”
Ameritrans Express LLC, a contract delivery service for the U.S. Postal Service, has filed for Chapter 11 bankruptcy amid claims by some of its contractors that they have not been paid since March.
A heavily competitive marketplace will restrain price increases at UPS, experts say.
Contract rhetoric with UPS has ratcheted up as the Teamsters walk away from the table and issue a new ultimatum.
Without agreement, Teamsters General President Sean M. O’Brien will demand UPS present its last, best and final offer.
The newly approved Ground Advantage product combines three existing Postal Service offerings into one.
The Teamsters union says it will not meet with UPS again unless the company provides a better proposal.
UPS and the Teamsters union have wrapped up noneconomic issues. The hard part, economic issues, lies ahead.
The Teamsters and UPS have reached a tentative agreement on more than 40 noneconomic issues.
Express operations will be in charge of FedEx’s unified Ground and Express network in Canada.
OnTrac said about three-quarters of retailers surveyed plan to invest in two-day delivery over the next two years.
About $2.3 trillion was spent to keep the nation’s logistics system operating in 2022, according to the 34th State of Logistics Report.
UPS Teamsters voted overwhelmingly Friday to authorize its leadership to call a strike if a deal isn’t reached by July 31.
UPS has told the Teamsters union it will install air conditioning and air induction vents in its package cars, union tweets.
GLS will handle the first and middle miles before handing off parcels to local partners.
UPS commits to 50% of Surepost packages being redirected from the Postal Service to UPS by the end of the next contract.
Weak market in 2023 won’t matter when rate hike time rolls around.
The Teamsters’ 340,000 rank-and-file ready a vote to determine if strike should be authorized.
Worldwide Express is the latest and biggest customer of the integrated payments and audit network established by TriumphPay.
A tentative agreement reduces the size of parcels that could be handled by the Postal Service, the Teamsters union confirms.
A slow economy and better carrier sourcing technology put shippers in a good spot, according to Reveel Group’s Josh Dunham.
Pitney Bowes CEO Marc Lautenbach retained his board seat despite the election of four Hestia Capital Management candidates.
The U.S. Postal Service is merging three ground-delivery products to emphasize surface transportation.
Teamsters General President Sean M. O’Brien urges UPS to abolish the 22.4 and the personal vehicle driver classifications.
Comprehensive survey says parcel shippers think status quo isn’t good enough.
Only UPS and Teamster rivals benefit when the bargaining leaves the table and becomes a verbal war, Jindel says.
Amazon also issues higher second-quarter guidance.
A weak U.S. consumer and a continued Asian downturn weigh on UPS. The macro environment is expected to remain challenged, CEO Carol Tomé says.
Parcel giant weighed down by soft US retail sales, continued slowdown in Asia
Amazon drivers and dispatchers in Palmdale, California, have won recognition to join Teamsters Local 396 in Los Angeles.
Despite what may be a lot of available parcels, Amazon may have better things to do with its capital than to chase UPS customers.
There is a lot more competition waiting to take a UPS parcel if workers go on strike, consultant Satish Jindel says.
As negotiations get underway between UPS and the Teamsters, here are key considerations for shippers navigating a period of uncertainty.
FedEx celebrates its golden anniversary of operations with its most intense few years in decades ahead of it.
The Teamsters meet with UPS on Monday in Washington to discuss progress on supplemental agreements as main negotiations begin.
Teamsters General President Sean M. O’Brien charges UPS with foot-dragging; UPS says regional supplements and the national contract are often negotiated at the same time.
A brand change ends lead company LaserShip’s involvement in the name of what is now simply “OnTrac.”
UBS’ Tom Wadewitz says more clarity on cost-cutting actions provides a “long runway” for stock.
Federal Express Corp. will consolidate its air, ground parcel and other units; LTL will operate separately under the brand.
Shekar Natarajan moves on as logistics provider Quiet Platforms looks to improve on a disappointing outlook.
Newly tapped interim CEO Lance Rosenzweig is targeting a four-fold increase in Pitney Bowes’ share price in coming years.