Regional carrier LaserShip is acquiring competitor OnTrac for $1.3 billion deal, in one fell swoop changing the equation in last-mile parcel delivery by giving the combined entity coverage of three-quarters of the continental U.S. as ecommerce demand continues to soar.
The U.S. Postal Service (USPS) has decided to temporarily suspend a planned reduction in service level standards for First Class package delivery until after the peak holiday season, a week after the Postal Regulatory Commission which oversees it said the plan “lacked demonstrable evidence.”
The ongoing COVID-19 pandemic-driven spike in ecommerce, a nagging labor shortage and supply chain issues have put capacity at a premium and left shippers struggling to keep up. This report explores ways today’s retail and ecommerce shippers must pursue a carrier strategy that would have seemed unthinkable just two years ago.
For the first time, Amazon Logistics surpassed a major carrier in domestic parcel volume, edging out FedEx in 2020, according to Pitney Bowes annual shipping index, although FedEx had substantially more revenue. Pitney Bowes is also predicting domestic parcel volume will nearly double between 2020 and 2026.
DHL eCommerce, the U.S. unit of logistics giant Deutsche Post, is investing more than $300 million in facilities and automation over the next five years, increasing its square footage here by 70%, automating distribution centers and upgrading IT systems. This includes dedicated export gateways in New Jersey, Illinois and California.
While UPS buys its way into last mile and on-demand delivery with Roadie, the U.S. Postal Service is piloting a same/next-day delivery service in Texas, geared toward local business-to-consumer orders that companies bring to a local USPS office to get a discounted rate. Experts questioned its value and market relevance.
UPS announced it was acquiring last mile platform Roadie for an undisclosed sum, thrusting it front and center into a space that has spiked in the pandemic era, providing a way to service demand that doesn’t fit into its existing network, including groceries and bulky items. The deal is expected to close in the fourth quarter.
UPS has ended a freeze on earned discount tiers based on large shipping volume drops caused by COVID-19 lockdowns, with some shippers seeing cost increases in the 10% to 30% range as they suddenly dropped two or three tiers, consultants and shippers report. The freeze ended as the lockdown effects are long over.
Ahead of the upcoming holiday season with its expected surge beyond the “perpetual peak” we’ve been seeing since March of last year, UPS is again issuing surcharges across its services, hitting major shippers particularly hard in a tiered system based on volume.
FedEx announced a new round of rate increases starting June 21, including bumps in additional handling, peak surcharge and residential delivery charges, leaving beleaguered ecommerce shippers to wonder where the increases will end. The carrier is also leaving in place a peak oversized charge of $30 per package from January.