1. Amazon launching shipping service that offers pickups, no residential delivery fee
Amazon is launching Amazon Shipping, a delivery service that’s launch was paused during the pandemic due to massive volume surges. The service provides delivery in 2-5 days (including weekends) for a variety of shipments, including those not sold on Amazon’s marketplace. Little info has been given on rates, but Amazon’s noted the service will not charge residential or weekend delivery fees.
Some are considering this another step towards becoming a direct competitor with FedEx and UPS, as Amazon Shipping will offer pickup services. It is unclear what cities and region the service is offered in at this time.
Article from Max Garland, Supply Chain Dive
2. UPS using AI to improve network efficiency
New network planning technologies have allowed UPS to increase flexibility when facing volume fluctuations. Through new tools, the carrier has been able to match declining volume with network capacity opportunities and shift volume from non-automated to automated hubs. With this, UPS cut labor by roughly 10% during Q2, which helps match the 9.9% decline in daily package volumes.
Article from Max Garland, Supply Chain Dive
3. USPS cuts air volumes
Over the past two years, the USPS has reduced air shipment volume by 90%, helping the agency towards their goal of saving $1 billion in costs. Postmaster General Louis DeJoy’s plan for improving the postal service’s financial health placed a large emphasis on increasing ground shipments, and 95% of first-class mail and packages now move through their ground network.
These efforts are part of the USPS’ greater efforts to reduce costs and increase per-package revenue. The agency has also reported a projected $6 billion in unplanned costs this year due to inflation.
