Despite public pronouncements from FedEx Chairman and CEO Fred Smith that he is unconcerned about Amazon as a logistics competitor, the company used that term in its recently released annual report for the first time in connection with the ecommerce giant. Further actions by Amazon will “reduce our revenue” FedEx stated.
Five months after it was initially scheduled to go into effect, the U.S. Postal Service will change how it calculates dimensional weight pricing while expanding DIM pricing to all zones across its Priority Mail Express, Priority Mail and Parcel Select products. The USPS is also lowering its DIM divisor from 194 to 166, increasing the cost.
Five months after investing in two-day ecommerce delivery and returns service ShopRunner, UPS is partnering with the company, offering a year’s free subscription to the 47 million U.S. members of its My Choice program. ShopRunner’s 100+ retail partners include Ann Taylor, Bloomingdale’s, Chico’s and Kate Spade New York.
The U.S. Supreme Court declined to hear an appeal of a lower court ruling, which denied UPS’s legal claim that the U.S. Postal Service’s pricing model gave it an unfair advantage over parcel shipping competitors. In 2018, a U.S. Appellate Court in Washington, DC upheld the pricing methodology. Amazon backed the USPS in the case.
In order for blockchain to succeed on a global scale in the transportation of goods, an open source standard will be required, according to a FedEx executive who heads up a blockchain alliance working toward that goal. The first standard of the Blockchain in Transport Alliance, on shipment location tracking, was published in March.
Eastern Connection, a regional carrier with a 35-plus-year history, shut down its operations earlier this month, the company announced, leaving shippers in the Northeast from Maine to Virginia looking for alternate capacity. Other regional carriers, including Lasership and CDL, stand to benefit along with UPS, FedEx and the USPS.
Adding a weapon in its competition with FedEx and UPS in eight Southern states, Texas-based regional carrier LSO has added route optimization and enhanced tracking and visibility through a partnership with software provider Bringg. See what capabilities this brings as well as enhanced productivity and efficiency for LSO.
Parcel delivery companies saw some post-peak falloff, eliminating 9,700 positions in February even as jobs grew in other sectors while hiring overall cooled, according to the Department of Labor, the Wall Street Journal reported. Overall 53,000 parcel delivery jobs were added in the past 12 months, and warehouse hiring also remains strong.