Jay's Parcel Notes: Dec 12 - Dec 26

I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals. It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.

• Spending during the holiday shopping period of Nov. 1 to Dec. 24 rose 3.8% over 2023, according to a Mastercard SpendingPulse report, compared to a previously forecast rise of 3.2% and topping the 3.1% increase during the same period last year.

• Amazon workers went on strike on Dec 19 in New York City; Atlanta; San Francisco; Skokie, Illinois; and Southern California. The strike ended 5 days later with Amazon not acknowledging any impact and rejected calls for bargaining.
• FedEx’s announcement that it will spin off its FedEx Freight division within the next 18 months, creating a new publicly traded company that will become the country’s largest less-than-truckload (LTL) carrier.
• UPS will increase rates and delivery area surcharges for its SurePost services on Jan. 13
• Effective Jan 13, FedEx will introduce an inbound processing fee on U.S. imports and a duty and tax forwarding fee. It will also apply a 40-pound minimum billable weight for packages whose dimensions require an additional handling surcharge, like UPS. FedEx will also levy a delivery area surcharge on several new ZIP codes.
• FedEx Supply Chain is laying off 70 people in Central Pennsylvania.

Holiday delivery delays

• FedEx confirms holiday package delays as anxious customers gather at Covington warehouse
• FedEx still experiencing shipping delays around Twinsburg as Christmas approaches
• People are fed up with FedEx facility in Pooler, waiting weeks for packages
• FedEx admits to delivery delays in Asheville as frustrated customers voice concerns
• USPS customers across Missouri experiencing delivery delays
• Struggling Post Office leaves residents and businesses in limbo in San Antonio
• Frustration grows over package delays at Indianapolis USPS hub
• Employees still concerned over space, backlog of trucks at troubled Palmetto USPS facility
• ‘We have not met service expectations’ USPS acknowledges in light of Durango mail delays

That’s it for now. For more, be sure to sign up for our twice a week email newsletter. Reach out if you'd like to learn how to lower or even possibly eliminate any parcel fees.

Stay tuned for the next newsletter on January 8. Don't forget to hit the subscribe button to ensure you receive it in your LinkedIn notices. In addition, if you like what you're reading, sign up to receive additional insights and analysis via emails twice a month - DM me for more info.

-Jay