Parcel

FedEx Freight to begin driver furloughs next month

FedEx Freight, the less-than-truckload arm of FedEx Corp. and the nation’s largest LTL carrier, said Saturday it will furlough an undetermined number of drivers starting in early December.

The furloughs are scheduled to last about 90 days, during which time affected workers will continue to receive health benefits and will be allowed to file for unemployment benefits in their respective states of residence. Some eligible employees will be offered permanent transfer opportunities to other markets...

https://www.freightwaves.com/news/fedex-freight-to-begin-driver-furloughs-next-month

‘Contractor-mageddon’ unlikely at FedEx Ground heading into peak

Two weeks before the Black Friday shopping craze hits, it appears the scenario of large-scale defections by financially troubled FedEx Ground delivery driver contractors — and the potential damage such departures could have on the FedEx Corp. unit’s peak-season operations — will not come to pass.

Some profit-squeezed contractors have walked away from their routes, and more than a few are unhappy with lower levels of financial incentives offered by FedEx (NYSE: FDX) to allow it to hire drivers...

https://www.freightwaves.com/news/contractor-mageddon-unlikely-at-fedex-ground-during-peak

Postal Service takes ‘measured’ approach in ’23 parcel rate change proposals

The U.S. Postal Service said Thursday it will leave 2023 shipping rates unchanged for two of its products but raise rates significantly on one product where it effectively has no competition.

Under the proposal, which would take effect Jan. 22 pending approval by postal regulators, the Postal Service will not raise rates on its Parcel Select Ground service, where it delivers shipments weighing up to 70 pounds within two to five days. It will also keep rates unchanged on its Connect Local...

https://www.freightwaves.com/news/postal-service-takes-measured-approach-in-23-parcel-rate-change-proposals

Postal Service posts small full-year revenue gains; volume falls

In what turned out to be a financially noisy fiscal 2022, the U.S. Postal Service on Thursday reported that operating revenue rose nearly 2% year over year to $78.5 billion, while volume dropped 1.2% due primarily to a 5.3% decline in shipping and package volumes.

The noise came on the bottom line, where the Postal Service reported net income of $56 billion, due almost exclusively to a $57 billion one-time noncash benefit from the landmark Postal Service Reform Act enacted in April. In its 2021...

https://www.freightwaves.com/news/postal-service-posts-small-full-year-revenue-gains-volume-falls

UPS posts solid Q3 results, avoids dreaded FedEx read-through

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For the past month, analysts and investors have been concerned that UPS Inc.’s third-quarter results...

https://www.freightwaves.com/news/ups-posts-solid-q3-results-avoids-dreaded-fedex-read-through

UPS hikes 2023 GRI by 6.9%, matching FedEx

In a move that caught virtually no one by surprise, UPS Inc. said late Friday that it would raise its 2023 published or tariff rates by 6.9%, matching the increase announced last month by rival FedEx Corp.

UPS’ (NYSE: UPS) increase takes effect Dec. 27, a week before the FedEx (NYSE: FDX) increase. The UPS increase applies to its U.S. air and ground delivery services, as well as its international services.

UPS also announced a 6.2% increase on heavier weighted air shipments moving within the U.S....

https://www.freightwaves.com/news/ups-hikes-2023-gri-by-69-matching-fedex

UPS to pay $5.3 million to settle hazardous waste claims

A brown UPS delivery van parked outside a building

UPS Inc. will pay more than $5.3 million to resolve violations of U.S. hazardous waste regulations at 1,160 facilities in 45 states and Puerto Rico, the Environmental Protection Agency said this week.

EPA alleged that UPS (NYSE: UPS) had failed to conduct proper on-site management of hazardous waste at its facilities and also failed to make land disposal determinations, the agency said in a statement Wednesday.

Under a consent agreement with EPA, UPS has three years to comply with the agency’s...

https://www.freightwaves.com/news/ups-to-pay-53-million-to-settle-hazardous-waste-claims

2 top Teamsters leaders to drive bus in UPS contract talks

For the past 25 years, the heads of the Teamsters union’s small-package division have led the negotiations with UPS Inc. to hammer out five collective bargaining agreements over that span.

The upcoming contract negotiations, which begin in earnest in the first half of next year, will be very much under new Teamsters management.

General-President Sean M. O’Brien and his second-in-command, Secretary-Treasurer Fred Zuckerman, both of whom took office March 1, will be in charge of the negotiations....

https://www.freightwaves.com/news/2-top-teamsters-leaders-to-drive-bus-in-ups-contract-talks

Peak parcel surcharges likely to stick despite slowing demand, carrier overcapacity

FedEx and UPS delivery vans.

The past two peak seasons for parcel delivery services were cut and dried affairs. Parcel carriers imposed delivery surcharges almost at will. Shippers, knowing their service options were limited during an unprecedented period of pandemic-related demand, mostly absorbed the levies.

This year’s peak season, which starts in earnest at the end of October, will be a different beast. Shipper activity has slowed as inflation, higher interest rates and recession concerns have curbed consumer spending....

https://www.freightwaves.com/news/despite-slowing-demand-peak-parcel-surcharges-arent-going-anywhere

Deutsche Post DHL raises full-year earnings outlook

DHL delivery vans parked in a row

German transport and logistics giant Deutsche Post DHL Group (OTC US: DPSGY) said Monday it will raise its full-year earnings guidance after reporting better-than-expected third-quarter and nine-month results.

Deutsche Post DHL said it expects full-year earnings before interest and taxes to come in higher than the 8 billion euros ($7.7 billion) that was originally forecast. Third-quarter EBIT was revised to $1.98 billion from $1.7 billion, while nine-month results were revised to $6.3 billion...

https://www.freightwaves.com/news/deutsche-post-dhl-raises-full-year-earnings-outlook

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