1. Amazon’s Volumes Surpass FedEx and UPS
Amazon delivered more parcels in 2022 than UPS, according to internal data and reported by the Wall Street Journal. Amazon surpassed FedEx’s volumes in 2020, meaning they’re the largest parcel carrier business (excluding the USPS) by volume in the U.S.
Amazon was once a large customer of FedEx, and still accounts for roughly 11% of UPS’ business.
Massive investments in their logistics network have made it possible for them to deliver more of their own packages. FedEx and UPS shifting their focus to higher-margin parcels, rather than sheer volume, has contributed to the shift as well.
The gap is expected to widen, as Amazon is projected to deliver roughly 5.9 billion packages in 2023, and UPS fewer than 5.3 billion.
Article from Esther Fung, Wall Street Journal
2. Pitney Bowes Prepares for Peak Season
In the last two years, Pitney Bowes has overhauled much of their network to rely more heavily on automation. This re-tooled network for their Global Ecommerce division will be tested for the first time this peak season.
The season will be crucial for Pitney Bowes, as investors have advocated for a sale of the Global Ecommerce division due to a lack of profitability. Interim CEO Jason Dies has said that Global Ecommerce has a “valuable foundation” and growing volumes, but unsustainable financial results currently.
Still, many at Pitney Bowes maintain confidence in Global Ecommerce. They’re positioning themselves as more “relationship-focused” than larger carriers.
“The most attractive market for us is that mid-market retailer that tends to be a bit smaller and tends to have a more difficult time getting that kind of attention from the larger providers in the market,” said Gregg Zegras, EVP and President of Global Ecommerce for Pitney Bowes.
Article from Max Garland, Supply Chain Dive
3. Walmart Adding Parcel Stations to Stores
Walmart, who is already using 4,000 brick-and-mortar stores as delivery hubs, is adding “Parcel Stations” to stores.
Jennifer McKeehan, SVP of Transportation and Delivery in the U.S., explained in a blog post that the Parcel Stations will help Walmart transport more online orders for faster local delivery, equating them to “a mini post office.”
