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.
One analyst says there’s no reason for FedEx to be aggressive at this time. Another says the current pricing push is visible but it’s limited.
Carrier revenues hit an all-time high in 2022, according to an annual Pitney Bowes study.
Pitney Bowes maintains it does not look to compete at scale with FedEx and UPS as alleged by Hestia Capital Partners.
The FedEx Ground unit flexed its muscles in the third quarter with strong operating income and cost-reduction prowess.
Volume weakness persists at FedEx, but cost reductions are acting as strong offsets.
The investment firm Hestia is seeking major changes in Pitney Bowes’ global e-commerce strategy.
Well-known shippers like Gap, Williams-Sonoma, Sephora and Nordstrom have returned to the big carriers after stints at regional carriers, a high-level regional source says.
Moody’s says regional parcel delivery company LaserShip is challenged by weak liquidity, high financial leverage and soft market demand.
German giant Deutsche Post DHL posted outsized gains in full-year operating income and said that performance will not repeat in 2023.
FedEx abandons its low-key communication style to get direct with UPS’ customers.
High-powered executive championed a growth strategy for the regional parcel delivery carrier that has since been tempered.
FedEx CEO Raj Subramaniam will advise President Joe Biden on the impact of government trade policies on multiple business sectors and export competitiveness.
Mark Holifield was in the top job at the regional parcel carrier LaserShip/OnTrac for just 17 months after leaving a high-profile supply chain position at The Home Depot.
Company looks to push a more agile air network.
Federal prosecutors allege UPS workers took possession of the drug, and a third worker not employed by the company provided fraudulent mailing labels.
The FedEx Ground unit appears to be looking to work directly with contractors rather than through consultants and brokers.
Shipping costs, not speed, to carry the day in 2023, DHL unit report says.
A new program to grade driver contractors will be introduced across the FedEx Ground network through March 2.
The UPS-Teamsters contract’s so-called 22.4 classification is unpopular with the union because it is seen as an unjustified second-class role for drivers.
U.S. Postal Service is aiming its two- to five-day delivery window at budget-conscious shippers and consumers.
For more than 50 years, a familylike bond has existed between FedEx management and employees. After a round of job cuts unprecedented in scope, that bond rests on shaky ground.
FedEx Office plans to focus on other growth opportunities after retiring its SameDay City service, FedEx Corp. says.
Wednesday’s announcement of high-level cost cuts, along with word of 12,000 job reductions in all, has sent shares soaring and analysts reevaluating opinions of the company.
The announcement is part of a reduction of 12,000 jobs since FedEx’s 2023 fiscal year began.
In a first for the FedEx unit, it will reward or punish driver contractors based on whether they attain gold, silver or bronze grades.
UPS’ CFO warns of a “bumpy road” ahead, while its CEO extends an olive branch of sorts to the Teamsters ahead of contract talks.
BoxC’s data-sharing initiative with the FDA showcases the growing need for government regulators to work with supply chains to fix operational inefficiencies.
Teamsters United said if the Postal Service can respect the King holiday, UPS should as well.
Things get noisy at the union’s two-day meeting to begin reviewing thousands of negotiating proposals.
FedEx Freight Direct now offers returns of big and bulky items.
Capacity investments and slowing online demand helped carriers hit their peak-season delivery targets, according to ShipMatrix.
The carrier will not let peak-season delivery levies fall away in mid-January as it has always done.
About 15% of deliveries scheduled for Friday and Saturday will not make it by Christmas, ShipMatrix says.
FedEx must convince stakeholders that it will stay the course on cost reductions.
FedEx’s 2023 second-quarter results proved its ability to quickly slash costs but also showed the damage a demand slowdown is inflicting on its top line.
The Postal Service said it will double its EV investment from its July forecast.
Each carrier will come in below the other on certain services, but the net effect will be a wash, TransImpact says
Since this isn’t 1997, UPS will stay open because it wants to keep business in a changed world for parcel delivery.
Amazon has shifted middle-mile parcel deliveries to UPS and last-mile deliveries to the U.S. Postal Service, Jindel says.
Consumers can take drop-offs to any of 2,000 FedEx Office locations
The on-time delivery rates for the November shopping holidays were better than in 2021, Ship Matrix said.
The shift from an alliance with the Postal Service to an in-house operation hasn’t gone as well as hoped for FedEx.
The carriers have had their day, and the pendulum appears to be swinging back in the shippers’ direction.
UPS said it will keep its money-back pledge on domestic and international next-day air services.
UPS has raised rates on the last-mile delivery product it operates in concert with the U.S. Postal Service.
The hub outside Philadelphia will support next-day ground deliveries between southern Maine and southern Virginia.
U.S. Postal Service program will add 7 million parcels of peak processing capacity, aggravating the holiday overcapacity problem for carriers.
UPS announces that export and import fuel levies will rise by 150 basis points effective Dec. 5.
The Trade Association for Logistics Professionals said it was not the “appropriate vehicle” to engage in dialogue between FedEx Ground and its delivery contractors.
The furloughs are set to begin in early December, and will be voluntary, the unit says.
FedEx Ground is unlikely to experience large-scale contractor defections during peak season despite dissatisfaction with the level of financial incentives to get them through the cycle.
The U.S. Postal Service plans to freeze rates on Parcel Select Ground and new Connect Local services but will institute a big increase on First Class Package Service.
The U.S. Postal Service posted declines in package-delivery revenue and volume.
German shipping and logistics giant Deutsche Post DHL has raised its full-year profit guidance to a record of $8.38 billion.
FedEx will suspend money-back guarantees on U.S. and air export next-day air shipments for nearly three weeks.
DHL Express’ tariff hike will exceed the increases by FedEx and UPS.
TFI posts strong third-quarter results and boosts its dividend by 30%. But much of the focus is on the work in progress at T-Force Freight.
Amazon reported a third-quarter sales deceleration that it says will persist into the holidays.
UPS reported higher-than-expected earnings per share and reaffirmed its full-year targets.
UPS’ general rate increase is designed to offset elevated cost inflation.
UPS has settled noncompliance claims with the Environmental Protection Agency at facilities in 45 states and Puerto Rico.
Teamsters General-President Sean M. O’Brien and Secretary-Treasurer Fred Zuckerman will take the lead in upcoming UPS contract talks.
Carriers facing cost and margin pressures are unlikely to back off holiday delivery levies, analysts say.
Deutsche Post DHL posted strong gains at its Express, freight forwarding and supply chain units.
FedEx goes big with a record GRI. UPS, facing a spike in labor costs, may go bigger.
FedEx Ground cited weakening macro conditions in reducing its holiday demand forecast.
Slack delivery capacity could finally give Amazon the incentive to insource volumes handled by UPS.
The U.S. Postal Service on Tuesday set its cutoff dates for shipments to be tendered in time to be delivered by Christmas Day. Shipments moving under the Postal Service’s Retail […]
FedEx acquires 7.9 million shares at a cost of $1.5 billion.
UPS has launched a program to offer one consolidated rate with no surcharges. However, experts said shippers may end up paying more compared with the traditional pricing plan.
FedEx will cut 11% of trans-Pacific flights, 9% of trans-Atlantic flights and 17% of Asia-Europe capacity.
FedEx announces a 6.9% tariff rate increase for all of its services except LTL.
A ShipMatrix report says delivery capacity will average 110 million parcels per day, while demand will average just 92 million parcels.
FedEx says weak international demand was the issue behind its fiscal first quarter pre-announcement. But the signs point to company-specific deficiencies.
FedEx has pulled its guidance a week before releasing first-quarter results. The company reported a $572 million year-on-year decline in FedEx Express’ operating income as macro weakness and higher costs took a toll.
FedEx Corp. announces most U.S. shipments must be tendered by Dec. 14, one day earlier than last year’s deadline, if they are going to arrive in time for Christmas.
Amazon will spend $450 million over the next 12 months to fund rate increases for contractors, provide tuition reimbursement for drivers, and support a newly formed retirement plan.
A Pitney Bowes survey finds that 41% of respondents believe Sunday service is important. But three-quarters don’t think it will happen.
With Teamsters contract talks looming, UPS is loath to step into a fight where a carrier is at odds with its drivers.
The estimated 100,000 seasonal workers UPS plans to hire is about the same as the past two peak periods.
A survey sent to FedEx Ground’s contractors asks if they have faith in CEO John Smith’s ability to lead the unit.
Former contractor Spencer Patton’s interlocking business structure allows him to keep profiting from FedEx Ground, even if he no longer drives for the company.
FedEx and UPS are ratcheting up their peak-season surcharges, much to the angst of shippers experiencing slowing volumes.
UPS’ peak surcharges will hit $6 to $7 per package for high-volume customers.
FedEx unit drops Spencer Patton’s companies from its contractor network, says it has contingency plans to pick up the slack.
FedEx Ground’s lawsuit alleges Spencer Patton is creating a contrived crisis with contractors to benefit one of his businesses, Route Consultant.
A bill that would make thefts of private-sector parcel deliveries a felony is the latest step in efforts to curb a growing problem.
The Postal Service is leaning on freight brokers as it cuts costs and chases efficiency. That’s bad news for long-time contractors.
DHL Express announced Tuesday it has raised hourly wages by 15% to 18% for workers at its Cincinnati airport facility.
Spencer Patton said he can no longer operate his business past Black Friday unless the FedEx unit renegotiates his contract.
Three delivery contractors acknowledge that some of their peers are struggling. But they maintain the contractor model remains on solid ground.
FedEx Ground contractor Spencer Patton has backed off a request for a 50-cent increase per stop and a 20-cent-per-mile hike for solo and team runs by contractors between hubs.
Temporary Postal Service rate increases on peak-season parcel-delivery services will come down hardest on heavier packages traveling more than 601 miles.
The U.S. Postal Service has reported single-digit drops in shipping activity compared to last year’s more robust pace.
FedEx says it will move up the start date of its peak-season surcharges to Sept. 5.
Delivery carriers Parcel LaserShip and OnTrac have announced residential ground deliveries with day-definite service.
Trade Association for Logistics Professionals will advocate for all contractor interests, not just FedEx Ground, the group’s leader says.
UPS has achieved brand value of $38.5 billion, a 28% increase over 2021.
Transport and logistics giant TFI posted quarterly gains across the board and raised the outlook for the rest of the year.
FedEx Ground could have made Sunday deliveries work if it stuck to its knitting, consultant says.
