UPS/USPS SurePost breakup, ILA/USMX makeup

Weekly Updates

1/10/25

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·???????? Parcel – The UPS/USPS Negotiated Service Agreement expired on 12/31/24. The result is millions of UPS packages that were originally to be delivered by the USPS through UPS’s SurePost program are now being handled by UPS’s own network. This comes at a price for shippers, that are expected to pay on average of 9.9% increase on 1-10 lb. SurePost packages.

·???????? LTL – With FedEx planning to spin off its LTL arm in the near future, a lot of questions have popped up. Trucking Dive works to answer five of the most burning ones.

·???????? Truckload – Load and truck post activity declined last week, but businesses and drivers taking time off for the holidays. The loads that did move, though, did so at a premium, pushing van and flatbed rates higher, while capacity tightened for reefer freight. Here are the truckload modal spot postings and rate comparisons (WoW/MoM/YoY).

o??? Van: Load-To-Truck: +32.6%/+59.4%/+82.2% - Rates: -1.5%/+1.0%/+0.5%

o??? Flatbed: Load-To-Truck:?+47.1%/40.9%/+94.6% - Rates: +1.5%/+0.0%/+0.8%

o??? Reefer: Load-To-Truck: +25.5%/+50.4%/+74.8% - Rates: +2.2%/+0.4%/-1.7%

·???????? International – It appears that the US will avoid another Teamsters strike at East- and Gulf-Coast ports as the ILA and USMX have agreed to a new 6-year contract with about a week to spare before the deadline.

·???????? International – Hoping for cheaper Asia to US rates soon? Don’t hold your breath. Asia to US West Coast prices increased 23% over the week including the new year and don’t appear to be slowing down.

·???????? Supply Chain – What are the trends to watch in ’25? Diversification, automation, AI, rising labor costs and more, per Supply Chain Dive.

·???????? Supply Chain – Supply Chain Brain gives shippers a bit of advice for 2025: focus on balancing efficiency with resilience, diversify supply chains to mitigate risk, and use technology for proactive planning amid ongoing disruptions and evolving tariffs under President-elect Trump’s trade policies. Adaptability is key to managing uncertainty.

·???????? Supply Chain – I agree with pretty much everything in this article but the headline: Visibility Begins with the Right TMS. For most shippers, visibility begins with A TMS. As a tool, many systems share most functionalities. One can pay millions and spend two years implementing a system like Manhattan – or get 90% of the benefit for a fraction of the cost with other partners. The most important part is the strategy that the tool helps shippers execute.

·???????? Supply Chain – During my career, “3PL” has gone from a dirty word to an integral part in most large shippers network strategies. As supply chains and the supporting web of partnerships continue to become more and more complex, it would appear that 4PLs are on a similar trajectory.