1. UPS and Teamsters Negotiations Begin in Washington D.C.
On Monday, April 17, the Teamsters Union and UPS began negotiations on a new collective bargaining agreement in Washington D.C., though talks on a national contract are yet to occur. The week before, the Union notified UPS that they would not negotiate the national contract until all 40 regional supplemental contracts were agreed upon.
A release from the Teamsters shared that General President Sean O’Brien stated “are not going to negotiate a contract that is cost neutral or with concessions,” and implored UPS to “start making movement on our issues now.”
The upcoming national contract is expected to extend through 2028 and cover 330,000 employees.
2. FedEx Express Consolidation and Restructuring Means Retiring Plan
FedEx’s plan to consolidate Express and Ground into a single operating unit will involve a heavy overhaul of their air network. The carrier will look to amplify the hub-and-spoke model by using more ground shipments to major air hubs, limiting the number of flights needed. Their goal is to encourage ground shipments as the default choice, saving air services for only the most time-sensitive of shipments.
According to FedEx Express CEO Richard Smith, they expect to see around $250 million in yearly cost reductions as a result of the restructuring. “We’re taking the vast connectivity and capacity we’ve been building over the past 50 years and making it smarter, more efficient, and more flexible,” Smith said.
Part of this overhaul will include a modernization of their air fleet. FedEx has announced they’ll be retiring (or discontinuing their leasing) of 58 McDonnell Douglass MD-11 cargo jets by 2028. Meanwhile, they’ve placed orders for 33 new aircraft from Boeing.
3. On-Demand Delivery Provider Targeting Larger Customers After Funding Round
Frayt, an on-demand delivery service, is scaling their business following a $7 million funding round. Now, they’re hoping to earn business from larger retailers, industrial partners, and 3PLs.
Frayt boasts a platform of 13,000 contracted drivers in 50 markets, who use their own vehicles to complete deliveries on demand. According to CEO Luke Denny, this network allows deliveries to be completed in under an hour in some markets, and this speed is what attracts customers.
Adding enterprise-level clients can be crucial for a logistics startup. Frayt has already gained high-volume big-name clients, such as Bridgestone, Cargill, and Sherwin-Williams.