1. Experts Share Attention-Grabbing Items from 2024 GRIs
Supply Chain Dive interviewed industry experts, including Sifted’s Kevin Miller, to uncover key points of FedEx and UPS’ 2024 General Rate Increases. Some of their insights include:
* Shipments traveling to higher zones will see sharper increases
* Heavier packages are being hit with higher rate increases than lighter counterparts
* Express/expedited services will see increases well above the 5.9% average
Miller emphasized the importance of working with carrier reps to identify ways to improve operations and reduce the impact of new rates.
“[Carriers] can give you suggestions as well on how to improve your network to help them be more efficient,” Miller said. “By doing so, it will save both companies money.”
Miller also lent insights to Sifted’s full GRI Analysis.
2. FedEx and Pilots Union Resume Negotiations
The FedEx pilot representatives of the Airline Pilots Association (ALPA) resumed negotiations with FedEx last week. In the summer, the union voted to reject a tentative agreement that would’ve given them a 30% raise in pay and pensions.
According to a union representative, they’re seeking compensation that more closely resembles what pilots at other airlines receive, many of whom have won better labor deals in recent months.
This comes shortly after a FedEx memo acknowledged a lack of demand for air cargo and encouraged pilots to consider applying for positions at an American Airlines subsidiary.
3. UPS Reduces Pilot Count By Roughly 200
FedEx isn’t the only carrier with an imbalance of pilots and air demand. UPS has offered a voluntary severance package to their pilots in an attempt to reduce headcount, with roughly 200 accepting.
According to the Independent Pilots Association – the union that represents UPS pilots – the carrier only intended to eliminate about 167 positions. This is a far lower number than FedEx’s goal of cutting roughly 700 pilot positions.
PSA Airlines is offering UPS pilots a $250,000 signing bonus and a direct path to fly for American Airlines – the same offer they’ve extended to FedEx pilots.