2/20/23 Monday Parcel News Update

1. Pitney Bowes Wants Heavier Packages in Its Network

Amid a wave of carriers introducing accessorial increases that discourage large, non-conveyable freight, Pitney Bowes is sharing that a lack of large packages is actually hurting their profitability.

In Q4, the average weight of Pitney Bowes’ parcels declined by .05 lbs, despite overall volumes rising. Revenue increased, but the lighter average package hurt the company’s profit per shipment. President and CEO Marc Lautenbach shared the company will still pursue lighter-volume parcels too, but a greater sales and marketing emphasis will be given to attracting business that will bring in heavier shipments.

Article from Max Garland, Supply Chain Dive

2. FedEx Introduces New Contractor Grading Program

FedEx is rolling out a new program to grade performance of their Ground contractors. The program, named “Medals” will evaluate and reward contractors with Olympic-style medal designations. Gold “medal” recipients will win the right to renegotiate contracts, rights of first acceptance, and several other business opportunities. Silver medalists will receive the same rights of renegotiations and first acceptance. With some exceptions, bronze medalists won’t be eligible for contract renegotiations unless they can improve their results within three months of their assessment.

The program, which some consider controversial, comes on the heels of a large group of FedEx Ground contractors calling for contract renegotiations and threatening to strike near the end of 2022.

Article from Mark Solomon, FreightWaves

3. Shopify Expanding “Shop Promise” Program

Shopify is expanding their “Shop Promise” program, which aims to give consumers better visibility for expected delivery dates before purchasing. Eligible merchants can place the Shop Promise badge on their site, which predicts an expected delivery date and guarantees delivery within 5 days. Those in the program have seen a 25% increase in conversion rates.

The badge will now be available to any Shopify merchant that can meet a specific set of shipping performance criteria. Previously, it was only available to merchants who used Shopify’s services for fulfillment. Shop Promise is similar to Amazon’s recent Buy With Prime expansion, but with a guarantee of 5 days, experts doubt it will have the same market impact Buy With Prime is expected to have.

Article from Max Garland, Supply Chain Dive