Topic
ups
Logistics UPS Falls Behind in Robust Trucking Market as PACCAR Rides Strong Demand
UPS's Q2 earnings missed expectations as the carrier declined to guide domestic volumes higher for H2, with Amazon's Flex expansion and ongoing restructuring weighing on sentiment. Meanwhile, PACCAR reported strong heavy-truck deliveries and raised its H2 outlook, indicating robust demand and favorable pricing. The tight driver market and upcoming EPA 2027 mandate are shaping capacity and equipment purchase decisions across the sector.
Logistics UPS shift away from Amazon shows bigger payoff
UPS completed its phase-out of low-margin Amazon business in Q2, leading to higher revenue per piece and profit despite lower volume. The company closed 45 facilities and automated 68.5% of U.S. volume, driving cost savings. Management raised full-year guidance.
Logistics UPS Labels Allegedly Diverted $2 Million in Nike Shoes in Memphis Cargo Theft Conspiracy
Federal prosecutors indicted 12 people for allegedly stealing at least $2 million in Nike products from Memphis distribution center using unauthorized UPS labels. The conspiracy ran from July 2021 to June 2024, involving Nike employees and external accomplices who rerouted shipments to addresses across the U.S.
Logistics Postal Service Moves Half of Long-Distance Mail by Air Just to Satisfy UPS Contract
The U.S. Postal Service is flying 50% of long-distance First-Class mail by air to meet minimum volume commitments under its new UPS air cargo contract, according to a report by the Office of Inspector General. This contradicts the Postal Service's Delivering for America plan to shift more mail to cheaper surface transportation. The contract, valued at over $10 billion, has forced USPS to put marketing mail on planes for the first time.
Supply Chain UPS Invests $48 Million in 27 Cold Transfer Facilities for Pharma Logistics
UPS has opened 27 temperature-controlled cross-dock facilities globally, investing $48 million to support pharmaceutical manufacturers and biotech firms. The facilities aim to minimize handoffs and temperature excursions, addressing cold-chain failures that cost up to $35 billion per year and cause 50% of global vaccine waste. The expansion underscores UPS's strategic push to double healthcare logistics revenue to $20 billion by 2026.
Logistics UPS Explores Outsourcing UK Parcel Delivery to Third-Party Couriers, Cutting 3,000+ Jobs
United Parcel Service plans to switch from employee delivery drivers in the United Kingdom to using independent contractors by June 2027, resulting in the elimination of more than 3,000 jobs at 51 sites, according to Unite, the country's largest trade union. The move comes amid a parallel dispute in the US with the Teamsters union over UPS's subsidiary Roadie using gig workers. Unite is considering a strike over the proposed changes.
Logistics UPS Meets Deadline for Retrofitting 2,000 Delivery Vans with AC, Teamsters Say
UPS met its obligation to retrofit 2,000 parcel delivery vans with air conditioning in the hottest parts of the U.S. by June 1, Teamsters union President Sean O'Brien announced. The company also launched a pilot to cool cargo compartments. The progress resulted from enforcement of the 2023 national contract, which includes a standing arbitrator for grievances.
Logistics UPS Enhances US-Mexico Freight Services for Industrial Shippers
UPS is upgrading its freight services between the US and Mexico, offering time-definite air and ground options to cater to industrial shippers. This move aims to streamline logistics for automotive and industrial sectors amid rising trade complexities.