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UPS Matches FedEx With 6.9% GRI for 2023

| Mike O'Brien

Days before its third quarter earnings report, UPS matched rival FedEx by announcing a general rate increase of 6.9% for 2023, an unprecedented figure for both major carriers set as a benchmark for pricing shipper contract rates. FedEx took heat last month in announcing its rate increase last month, as it reported a painful quarter.

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TikTok Creating Fulfillment Network in U.S., Globally

| Mike O'Brien

TikTok is looking to create a global logistics infrastructure, including in the U.S., to fulfill merchant orders on its TikTok Shops ecommerce platform, creating a good deal of industry buzz based on its rapid growth as a dominant social media and advertising platform, as first reported by Axios.

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Instacart, San Diego Reach Worker Settlement

| Mike O'Brien

Instacart and the attorney’s office for the city of San Diego have reached a settlement over charges it misclassified its delivery drivers as contractors, a heated and ongoing issue in California and elsewhere that challenges the economics of last-mile delivery companies using the pervasive gig model.

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FedEx Ground to Contractors: Expect Lower Peak Volume

| Mike O'Brien

FedEx Ground told its base of 6,000 contractors that domestic peak season volume is expected to be lighter than previously reported, as the company battles headwinds a year after package flow fell below forecasts, causing pain and outcries from contractors who invested heavily in trucks and drivers.

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Parcel Volume in 13 Markets Up 21% in 2021, Revenue Grows Slower

| Mike O'Brien

Global parcel volume increased 21% in 2021 to 159 billion pieces, according to an annual Pitney Bowes shipping index that tracks activity in 13 markets, but revenue increased at a slightly lower rate of 17% as declines in per-piece yield in China acted as a check on that growth.

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Sephora Launches Unlimited Same-Day Delivery Subscription

| Mike O'Brien

Beauty retailer Sephora is upping its convenience game, launching an unlimited same-day delivery subscription for $49 per year, through its website or the Sephora app, a service not offered by main rival Ulta Beauty, which charges $9.95 per delivery without the app option. The program has no minimum and there is a 30-day free trial.

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Autonomous Vehicles Maker Clevon Launches in U.S.

| Mike O'Brien

Clevon, maker of autonomous vehicles designed to run on city streets instead of sidewalks like many others, has opened up a U.S. office in Fort Worth, TX to launch its planned expansion here, with a number of big-box retailers and delivery providers interested, according to its CEO. The company has been running EVs in Europe since 2020.

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The Parcel Industry in the Age of Disruption

| Bill Knasinski

The situation in the parcel industry — high shipping rates, increased surcharges and shipping delays — is a convergence of many complex issues, including supply/demand imbalance, a rough economy and geopolitical woes. Let’s take a closer look at how ecommerce and government laws have disrupted supply chains. 

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GoBolt Offers Eco-Friendly Last-Mile Parcel Delivery in U.S., Canada

| Mike O'Brien

GoBolt, a white glove last-mile delivery service focused on carbon neutrality use electric vehicles and carbon offsets through a technology partnership, has launched parcel delivery in several U.S. and Canadian cities by leveraging an acquisition, with plans to expand as demand and adoption dictate.

FedEx express truck

FedEx Rate Hike of 6.9% Largest in its History

| Mike O'Brien

FedEx detailed efforts to remove more than $6 billion in costs over time as capacity outstripped demand globally, while calling for the largest-ever rate increase of 6.9%, as analysts asked hard questions about operating missteps after a quarter with revenue up 6% but operating income down 18%.