Resources
Carrier rate and surcharge announcements, the industry news that moves them, and analysis from people who priced these agreements inside the carriers. Each one explains what the change could mean for your shipping costs.
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ParcelILA and USMX Resume Talks
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) will restart contract negotiations on January 7 While a tentative agreement on wages was reached in October 2024, other critical issues, notably the extent of port automation, remain unresolved.
OnTracILA Contract expires in January 2025
Will a new master contract be extended by the deadline? The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are currently engaged in negotiations to finalize a new Master Contract before the extended deadline of January 15, 2025.
FedExFedEx and OSHA Reach Settlement
The U.S. Department of Labor has reached a settlement with Amazon The U.S. Department of Labor announced a corporate-wide settlement between OSHA and Amazon to improve worker safety and prevent lower back and musculoskeletal injuries at Amazon facilities. This agreement resolves multiple ergonomics cases and marks OSHA’s first major multi-site investigation in over a decade.
FedExFedEx Q2 Earnings
FedEx announced plans to spin off its freight division alongside mixed fiscal Q2 results. The company exceeded earnings estimates but fell short on revenue. FedEx reported adjusted earnings per share (EPS) of $4.05, slightly surpassing analysts’ expectations of $3.90. However, revenue declined by 1% year-over-year to $21.97 billion, missing the anticipated $22.14 billion.
FedExFedEx Spins off Freight
FedEx Corp. announced plans to spin off its FedEx Freight division into a standalone company, positioning it as North America’s largest publicly traded less-than-truckload (LTL) carrier. FedEx continues restructuring operations to focus on its core delivery business.
UPSUPS Fuel Surcharge Adjustment
Effective December 23, UPS will adjust its fuel surcharge tables again. This modification will impact Domestic Ground, SurePost, and Express services. How will this impact your cost? Increasing the current diesel base rate from 16.25% to 17.5% allows UPS to lock in higher fuel surcharges even when diesel prices decline.
UPSUPS SurePost Enormous Rate Increase in 2025
On December 13, 2024, the Postal Service amended the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM) to discontinue dual shipping labels. That amendment will discontinue Dual Shipping Labels effective January 1, 2025.
ParcelCanada Post Strike
Canada Post’s operations continue to be disrupted by the Canadian Union of Postal Worker’s (CUPW) national strike. Approximately 55,000 postal workers went on strike on November 15, demanding better pay and improved working conditions.
DHLDHL Launches Autonomous Truck Operations with Volvo in Texas
A Strategic Alliance for Innovation Volvo Autonomous Solutions and DHL Supply Chain have launched autonomous freight operations in the U.S. using the purpose-built Volvo VNL Autonomous truck powered by the Aurora Driver system. This initiative aims to validate large-scale autonomous transport systems.
AmazonAG Sues Amazon
The Office of the Attorney General seeks to stop Amazon from engaging in unfair and deceptive practices. Attorney General Brian L. Schwalb filed a lawsuit against Amazon.com, Inc. (Amazon), accusing the company of misleading District residents into paying for Prime delivery benefits they are not receiving, in violation of the District’s consumer protection laws..
ParcelPorch Pirate Solution
According to Security.org, Porch pirates stole $12 billion in packages in the past year, and as many as 58 million Americans have become victims in the last 12 months. Package theft is a growing issue, leading shoppers to invest in solutions like doorbell cameras, lock boxes, and insurance.
UPSUPS implements Verity drones
UPS Supply Chain Solutions has partnered with Verity to implement autonomous inventory tracking at its Kentucky-based UPS Velocity facility. The technology enables Velocity to detect stock discrepancies and minimize “high-reach tasks” for employees.
ParcelSpeedX – The New Last Mile Delivery in the U.S.
The rise of e-commerce giant Shein has led to the creation of SpeedX, a U.S. delivery service specializing in dropping packages directly at shoppers’ doorsteps nationwide. SpeedX, launched in 2022, is a U.S. delivery service focused on low-cost shipping of small international packages, primarily for platforms like Shein, Amazon, and TikTok.
USPSUSPS Lowering On-Time Delivery Targets in 2025
The U.S. Postal Service (USPS) has published its 2025 Performance Targets by Service. The agency is reducing its on-time delivery targets for First-Class Mail in the 2025 fiscal year, as stated in a November 29 filing with the Postal Regulatory Commission.
UPSSEC fines UPS $45M
Securities and Exchange Commission (SEC) imposes a $45M fine on UPS for overvaluing its LTL unit before sale. UPS Freight was acquired by TFI International in 2021 for $800m and is now branded as TForce Freight.
USPSUSPS 2025 Rate Increase Plans
The U.S. Postal Service (USPS) has filed notice with the Postal Regulatory Commission (PRC) for proposed Shipping Services price changes effective January 19, 2025, approved by the USPS Governors. The changes include: – Priority Mail & Priority Mail Express: ~3.2% increase. – USPS Ground Advantage: ~3.9% increase. – Parcel Select: ~9.2% increase.
ParcelSpee-Dee Delivery Service will not increase 2025 rates
A Midwest regional delivery service, Spee-Dee Delivery, states to their customers in a letter on November 11 that they will not be raising their rates in 2025.
ParcelReducing Address Correction Cost
In today’s fast-paced e-commerce landscape, getting a package to the right address quickly and accurately is essential for customer satisfaction. However, incorrect or incomplete addresses are common and can lead to costly address correction fees from shipping carriers.
ParcelPeak Shipping Deadlines 2024
Peak season is busy enough already, and timely deliveries are crucial to keeping customers happy. It is essential to help buyers plan by clearly sharing holiday shipping deadlines. Major carriers provide schedules to ensure smooth, on-time shipments and maintain holiday cheer.
AmazonAmazon Prime Air Drone Deliveries
Amazon announced yesterday the launch of its Prime Air drone delivery service for customers in Tolleson, Arizona. The service is for customers who live near their Same-Day site in Tolleson, Arizona, and the purchased item weighs less than 5 pounds or can be delivered by drone in under an hour.
ParcelPeak Season Surcharge
All major carriers (UPS, USPS, FedEx, and DHL) are introducing temporary surcharges to handle the rise in shipping volumes and related operational expenses during the peak season of 2024. These fees could have an impact on your cost.
UPSFedEx – UPS General Rate Increase 2025
UPS and FedEx both announced an increase of 5.9% in 2025 General Rate Increase (GRI). The FedEx Increase is effective January 6, 2025, and the UPS effective rate is two weeks earlier, on December 23, 2024.
ParcelCondensed Days for Shipping 2024
This holiday season brings a distinct challenge, with only 17 shipping days between Black Friday and Christmas Eve. This is a tight window we haven’t encountered since 2019. Data from that year reveals that consumers typically pause their spending right before Thanksgiving, only to surge back during the prime shopping days.
DHLDHL leverages AI to enhance customer experience.
DHL Supply Chain, with support from BCG X, has launched key Generative AI applications to enhance efficiency and customer experience. The first tool, a data cleansing application, supports the Solutions Design team by cleaning and organizing customer data, enabling faster and more accurate logistics planning.
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