Volume 15: Connect with Sifted at RILA LINK
Volume 15 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 UPS Cutting More Sorting Jobs
A week after announcing plans for 12,000 layoffs in 2024, UPS has shared plans to cut sorting shifts and layoff employees in Connecticut, Maryland, and Oregon. This adds to recent sorting shift shutdowns in Kentucky and Indiana.
?A notice from the company specified that lacking volumes led to the reduction of operations.
“We often evaluate our operations and flex our network to meet volume demands,” said UPS spokesperson Jim Mayer.
#2 Pilots Flying Amazon Packages Accuse Employer of Delaying Contract Negotiations
The pilots’ union of Air Transport International (ATI), the largest air carrier used by Amazon, has accused ATI’s leadership of delaying their labor agreement negotiations.
The pilots’ contract has been eligible for amendments since March 2021. However, the union alleges that ATI is delaying a new labor agreement until they sign a new contract with Amazon in two years.?
Airlines can raise prices to cover higher labor costs whenever necessary. ATI, however, doesn’t have that flexibility with Amazon.
Union members have authorized their leadership to call for a strike due to stalled negotiations, once it’s legally permissible.
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#3 USPS Loses $2 Billion, but Sees Encouraging Signs
The USPS lost roughly $2 billion during the first quarter of FY2024, which includes peak season. Their losses doubled from the same period last year, continuing the agency’s trend of poor financial performance.
However, the USPS pointed to a few small signs that could signal the start of a turnaround. When only accounting for what the service deems in their own control (excluding things like fluctuations in labor costs and benefits), they turned a profit of $427 million. Package revenues also saw a 3% YoY increase.
"While we have noteworthy accomplishments, we have far to go on our transformation journey,” said Postmaster Louis DeJoy. “However, our performance during the recent holiday quarter demonstrates that our modernization strategies are putting the Postal Service on an upward trajectory.”
Connect with Sifted at RILA Link 2024
RILA LINK is just around the corner - and Sifted will be there! You can find us at booth #1230.
We’d love to meet you there; visit our exhibitor profile to add us to your show planner.?
What is % Express?
Express % refers to the percentage of your total shipments that are sent using an express or expedited shipping service.?
Why is tracking % Express important?
It is important to track what percentage of your shipments use an express service for a couple of reasons. If you are shipping a high percentage of express shipments, you will first want to validate that you need to use an express service type. Ground is a cheaper solution if you don’t need the benefits of Express. If you validate that express is needed, you’ll want to consider negotiating discounts with your carrier on these service types - as they will have the biggest impact on your bottom line.