7/5/23 Parcel News Update

1. Teamsters Say Negotiations Have Collapsed

Negotiations between UPS and the International Brotherhood of Teamsters have broken down, the union shared today in a release. The release states that negotiations concluded around 4 a.m. when the Teamsters’ UPS National Negotiating Committee unanimously voted to reject UPS’ proposal. This comes after the union demanded UPS present a “best and final” offer, which they claim UPS failed to do, stating the company “had nothing more to give.”

Teamsters previously demanded that a tentative agreement be reached by today. At the moment, no more negotiation sessions are scheduled, and Teamsters has remained fervent that Teamsters UPS workers will strike on August 1 if a new agreement isn’t in place.

Meanwhile, UPS blames the union for ending negotiations, stating they “have not walked away, and the union has a responsibility to remain at the table.” They also noted their proposals were building on what is already “industry-leading pay.” They’re encouraging Teamsters to return to negotiations.

Release from the International Brotherhood of Teamsters
Release from UPS

2. USPS Enduring International Volume Decline

Despite an eCommerce boom, the USPS has faced dramatic declines in international volume over the last five years. According to a report released by the USPS, inbound international volume declined 74% over the last five fiscal years, and outbound international shipments fell 38% in the same period.

The Postal Service attributed the decline to a few factors, such as increased competition, COVID-19 related disruptions and shifting international shipping models. The agency is exploring new offerings to boost international shipping volumes as they undergo a 10-year transformation plan to make them a more viable commercial competitor.

Article from Max Garland, Supply Chain Dive

3. USPS Ground Advantage Service Authorized by Regulators

The Postal Regulatory Commission has authorized the USPS to launch their new Ground Advantage service on July 9. The new service is the result of a consolidation of three separate ground shipping options, which now will offer two-to-five day delivery times with ounce, pound, or cubic pricing for parcels weighing up to 70 pounds.

Article from Mark Solomon, FreightWaves