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FedEx Activist Investor Seeking Input from Ground ISPs

| Mike O'Brien

An activist investor group with control of at least two board seats at FedEx is reaching out to FedEx Ground contractors to see what they think of efforts by a new association of independent service providers to collectively approach management about challenges to their operations.

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USPS Projects $1 Billion Inflationary Hit in Costs

| Mike O'Brien

The U.S. Postal Service plans to hikes rates in January as a hedge against a projected $1 billion inflationary hit on 2022 operating costs, as the USPS reported a $459 million third-quarter loss, which excluded a $2.15 billion impact from reform legislation addressing prefunded retiree healthcare. A peak surcharge is also being imposed.

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FedEx Ground Group: Contractors Could Flip to Franchisees

| Mike O'Brien

The head of a renegade association of FedEx Ground contractors said those businesses have a strong case to be reclassified as franchisees, which would challenge the very contractor model the unit is built upon. Spencer Patton said many contractors could meet the reclassification test, giving them more legal rights and benefits.

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LaserShip, OnTrac Plan to Expand Transcontinental Network

| Mike O'Brien

Ten months after joining forces, regional carriers LaserShip and OnTrac have launched a transcontinental home delivery network linking east and west coasts, with plans to expand to Texas in early 2023 and other markets thereafter, offering shippers an alternative to FedEx and UPS.

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Port of Oakland Still Looks to Court Action

| Mike O'Brien

While trucker protests are no longer blocking the flow of goods at the busy Port of Oakland, port officials are still hoping a California district court judge will take action to prevent future efforts to create a logjam there as retailers gear up for the 2022 peak holiday season.

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Cross-Border Ecommerce: Facing Logistical Challenges, Seizing Opportunities

| Mike O'Brien

With worldwide cross-border ecommerce sales reaching as high as $2 trillion by 2030, the opportunity is hard to ignore, but there are logistical hurdles to overcome. The good news: provider networks have made it easier than ever for even SMBs to jump in. This MCM report taps cross-border experts to explore both the risks and rewards of cross-border ecommerce in 2022 and beyond.

UPS city delivery

UPS Exceeds Q2 Targets but Sees Lower Volume

| Mike O'Brien

UPS exceeded its Q2 revenue and earnings projections, but lower volume due to consolidation steps, including reducing Amazon packages by contractual agreement, plus the challenged macro picture didn’t resonate well on Wall Street. UPS is also piloting a delivery density program for major retailers through an OMS partnership.

FedEx ground stepvan

FedEx Suspends Sunday Delivery in Some Markets

| Mike O'Brien

FedEx is suspending Sunday delivery for its Ground network in some lower-density markets starting Aug. 21, citing a focus on “improving efficiency and reducing costs,” the move coming amid calls from contractors for relief from high costs, including elimination of Sunday service.

AB5 Oakland protest feature

AB5 Trucker Protest Snarls Port of Oakland

| Mike O'Brien

Truck drivers blocked the Port of Oakland Monday, protesting California’s AB5 law that requires contractors to be reclassified as employees. The law affects an estimated 70,000 independent truckers, many of whom fear losing their livelihood, according to various media reports. There were similar protests last week in LA/Long Beach.