3/6/23 Monday Parcel News Update

1. FedEx Urges Customers To Shift Volume From UPS Ahead of Potential Labor Strikes

In a letter to various UPS shippers, FedEx gave notice that any shipping volume currently committed to UPS that is moved to FedEx before March 31 is guaranteed to receive high-priority service levels. The letter comes amid talks of a potential strike from UPS’ 350,000 Teamsters members.

UPS said “it is normal and expected that our competitors try to scare our customers, especially during our contract negotiation years,” in a statement.

While FedEx hopes to capitalize from fear of service disruptions, most UPS shippers are in “watch and wait mode,” according to Nate Skiver of LPF spend management. The upcoming Teamsters negotiations will need to reach an agreement by August 1 to avoid a strike.

Article from Mark Solomon, FreightWaves

2. Amazon Has Shut Down or Altered Plans on 99 Logistics Facilities

Since April 2022, Amazon has been closing, canceling or delaying the opening of its logistics facilities following an overexpansion of their network. The rapid growth came during the pandemic’s eCommerce boom, and normalizing demand has led the company to continue right-sizing their network’s footprint in 2023.

The total number of affected facilities has now reached 99 locations in 30 states, according to a survey from MWVPL International.

Amazon is attempting to counter their overexpansion by bringing more volume into their network. Their recent expansion of Buy With Prime allows them to operate more like a traditional carrier, and they’re reducing the volume they ship through UPS.

Article from Jack Rogers, Globest

3. LaserShip/OnTrac Announces New CEO

LaserShip/OnTrac, the nation’s largest regional parcel carrier, announced they’ve appointed Mike Duffy as Chief Executive Officer. He succeeds Mark Holifield, who decided to step down from the role.

Duffy will lead the company in a time of “growth and expansion.” Under Holifield’s leadership, LaserShip and OnTrac merged to combine the two regional carriers’ networks into one that now offers transcontinental delivery and reaches 74% of the U.S. population in 30 states.

Duffy has over 20 years of experience in distribution and supply chain management. He was previously the CEO of FleetPride, the nation’s largest distributor of truck and trailer parts. Before joining FleetPride, he served as C&S Wholesale Grocers, the largest wholesale grocery distributor in the nation.

Press Release from LaserShip/OnTrac