Volume 10: 2024 Shipping Industry Outlook
Volume 10 Breakdown:?
Every Monday we’re catching you up on the top 3 industry news stories from the previous week. Let’s get into it:
#1 FedEx Express Feeling Impact of Lower USPS Volumes
Lower volumes from the USPS have caused a “significant headwind” for FedEx Express. The postal service’s 10-year transformation plan involves shifting more packages to ground, which has led to 90% reduction in air volumes.
FedEx Express’ revenue has declined YoY, and the drop in volume from the USPS is a significant factor. They have their own plan to restructure and optimize their operations to reduce costs, but service/speed requirements required by their USPS contract are complicating their efforts.
#2 FedEx Express Facing Labor Challenges
FedEx’s declining air volumes (both from the USPS and other clients) is exacerbating their labor challenges. The carrier is now planning cut guaranteed flight hours and offer early retirement packages to about 400 pilots (double the amount UPS did a few months ago).
FedEx Express’ pilots' union is still negotiating a new collective bargaining agreement, complicating these efforts. At the same time, the union continues to lose bargaining power as volumes decline.?
Division within the union might slow progress on negotiating a new deal. The tentative agreement last summer was voted down by a narrow margin, and many called for the chairman of the negotiating committee to resign. He hasn’t, despite promising to do so.
Meanwhile, roughly 6,000 mechanics at FedEx Express have launched a push to unionize under the Teamsters.
#3 UPS Reduces Sorting Operations at Louisville Facility
UPS is ceasing daytime sorting operations at a Louisville hub. An undisclosed amount of employees will be laid off.?
The Teamsters recently threatened to strike over planned layoffs for administrative employees at the same facility, but the union “does not anticipate a massive impact on our membership beyond shift and schedule changes" with the day sort layoffs.
领英推荐
What is $ Lost from Returns?
$ Lost from Returns refers to how packages returned by customers directly impacts your bottom line.?
Why is tracking $ Lost from Returns important?
Tracking $ Lost from Returns is especially important for eCommerce businesses following peak season. As eCommerce sales go up, in turn, so do returns; this can have a massive impact on your bottom line. Understanding how much you lose from returns allows you to make decisions regarding your return processes going forward (i.e. consider if you need to update your return policies, change prices, or work with third party merchandise handlers).
2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize
Over the last few years, soaring shipping costs, unpredictable rate hikes, and a challenging logistical landscape have burdened businesses.
Things are finally looking up in 2024!?
In this article, we highlight five 2024 shipping trends that are driving down shipping costs and how to take advantage of them. You can read it here.
More From Sifted
LeaderShipping Ep. 7 Finding the right Alternative Carrier for You (ft. Timur Eligulashvili)
One topic has dominated parcel shipping news, conferences, and conversations in 2023: Carrier Diversification ??
And we’re diving into it on LeaderShipping Episode 7: Finding the Right Alternative Carrier for You—out now!
In this episode, our host, Caleb Nelson , talks to Timur Eligulashvili , Founder and President of Logistics Remix, about the rise of alternative carriers, and how shippers can best partner with them.
Here’s where to tune in:
Spotify: https://bit.ly/485nwm1
Apple: https://bit.ly/481FA0h
YouTube: https://bit.ly/3GN9LfZ