Better Trucks, a Chicago-based parcel delivery firm, has enlarged its footprint through opening new locations in Texas and partnering with West Coast-based GLS U.S., giving the two firms same-day to two-day coverage of 32 markets in 20 states, representing 40% of the U.S. population. The deal is similar to the joining of regional carriers OnTrac and Lasership in 2021, though on a smaller scale.
FedEx, sensing an opportunity against its main rival, has posted a general rate increase for next year three weeks earlier than usual and lower than the current year’s figure, coming in at 5.9%, as UPS is dealing with a new union contract cost that the Teamsters estimates at $30 billion over five years. Analysts believe it will lead to a rethinking of UPS’s approach to its GRI strategy.
Freight brokers help mitigate risk by confirming carrier invoices. They make sure carrier insurance is covered and routes are optimized to cut down on wasted drive time, tracking shipments from pickup to final destination. They help to resolve claims for their customers. They ensure that inconveniences are in order for international shipping. So why is “freight brokers” a dirty word? It shouldn’t be.
Amazon is testing pricing for non-Prime members to get free shipping in selected areas, raising the threshold from $25 back to $35 – the same as for shoppers who aren’t members of Walmart+ – as it probes the potential to increase order value when shoppers add items. Amazon has yo-yoed the order threshold as it reads the tea leaves of analytical data on shopper behavior and pulls the levers.
As expected, the International Brotherhood of Teamsters voted overwhelmingly to ratify a new five-year contract with UPS, giving the 340,000 members at the carrier higher wages for part- and full-time workers, and eliminating a hated two-tier system of driver classification. More than 86% of union members voting said yes to the new contract, the Teamsters said, a record for a UPS deal.
Amazon has been quietly growing the volume of orders going out boxless, which the company says represented 11% of items shipped in 2022, a move that some see as a sea change in reducing packaging materials that will be imitated across retail. Amazon customers can choose to add an external “smiley” box at checkout, but boxless is now the default, with more apparently opting for it.
UPS reported a 10.9% dip in second quarter revenue, but still hit its goal of $2.9 billion in operating profit thanks to $889 million in cost reduction compared with 2022. The company also said 1 million parcels a day were diverted to competitors due to concerns about labor negotiations. UPS also lowered full-year guidance mostly due to costs associated with the new contract, the company said.
The U.S. Postal Service reported a net loss of $1.7 billion in the third quarter, placing the blame on the 2022 Postal Service Reform Act which was billed as a way to help provide relief for the USPS from the burden of unfunded retiree healthcare benefits. Parcel volume, which had been ticking up quarter by quarter at the USPS for several years, fell 2.3% to 1.7 million pieces, after dropping 5% in Q2.
With all the focus on winning in the last mile, companies need to pay more attention to critical first mile success, addressing the various headwinds that beset it. Brands need to strike a balance in optimizing the first mile that address efficiency, affordability and overall performance. Here are two critical areas to address in order to help you mitigate risks and assure a seamless flow of goods.
A U.S. Postal Service plan to insource all line hauling of mail and parcels between hubs and local delivery units, which had been handled by contractors, will be completely phased in by 2025, according to a source with knowledge of meetings with USPS officials. The USPS says “some” contract carriers will be affected by the change, which is part of its 10-year Delivering for America overhaul plan.