11/1/2023 0 Comments Does ups pickup packages on sundayFifty-five percent of Teamsters-represented UPS employees work part time, according to UPS spokesperson Jim Mayer. Negotiations between UPS and the Teamsters union came to a halt last week, in large part due to conditions for the company's part-time workers. UPS "might lose some people completely outright, but I think more than often, you'd see that they try to put a little more volume with an alternate carrier moving forward," Storch said. He said most shipping customers would ultimately go back to UPS, partly due to familiarity with the company and its delivery system.īut Tommy Storch, a transportation procurement expert at consulting firm Insight Sourcing Group, said many UPS customers would likely shift to a more diverse carrier set, keeping a higher percentage of their volume with other carriers to protect their business from future disruptions. Chief Executive Officer Carol Tomé said during an earnings call in April that UPS has assigned 127 "high-impact executives" to update major customers on "our ongoing negotiations with the Teamsters and to keep them with us."Įven if UPS were to lose some market share leading up to and during a strike, Tancredi predicts the impacts would be temporary. UPS is taking note of the potential to lose customers to rivals. Postal Service has the capacity to "deliver what is tendered to us." USPS spokesperson Dave Partenheimer said the U.S. Amazon, he added, could also pick up volume through its own delivery network. Postal Service could also take on some of UPS' volume, since the agency is already built to handle package delivery. "And you'll see, in the next two weeks, them starting to shift a lot of that volume over to FedEx." "As this impending strike gets closer, you'll see customers start to panic a little more," Tancredi said. He said FedEx is trying to attract more shipping customers by leveraging fears of a possible UPS strike. Jeremy Tancredi, who leads the supply chain team at consulting firm West Monroe, said encouraging customers to switch to FedEx early - before a strike happens - is a "great sales ploy." "As customers are inquiring about available capacity at FedEx, we have been really clear that, yes, of course, we would entertain any good business, and we'd love to talk to them," said Brie Carere, chief customer officer at FedEx, during a company earnings call in March. "In the event of a market disruption, no carrier can absorb all UPS volume," FedEx executives wrote in a July 6 internal company memo reviewed by NPR.įedEx is urging shippers to "begin shipping with FedEx now," according to the memo. UPS delivered an average of 24.3 million packages per day in 2022 - more than any competitor can take on. Postal Service at 17% and Amazon Logistics at 12%, according to data from the Pitney Bowes Parcel Shipping Index.īut analysts say UPS' competitors won't be able to absorb all the backlog created by a strike. In 2021, UPS had 37% of the parcel delivery market by revenue, followed by FedEx at 33%, the U.S.
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