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This week in parcel, TransImpact extracts four highlights from the 2024 UPS GRI and carriers turn to automation and set holiday deadlines..

4 highlights from the 2024 UPS GRI

UPS just released the details behind its 5.9% 2024 GRI, ending the weeks-long wait. TransImpact is currently working hard to bring you a comprehensive report, but we already have four highlights we wanted to share.

UPS’s past few years have been turbulent, and this year didn’t offer any reprieve. UPS needs to play catchup after losing business during its tense negotiations with the Teamsters union.

Click here to read how UPS is trying to weigh the need to catch up with the need to add customers in its decision with 2024 rate increases.

Make sure to also sign up below to be one of the first people to get our detailed analysis of the 2024 UPS GRI.

Peak season is changing as automation fills the labor gap

By 2027, one study estimates that over 75% of companies with warehouse operations will have adopted some form of automation. This will include UPS and FedEx, who both announced this year they were investing in automation to streamline operations and lower costs.

Both carriers are looking to add automation to processes that do not involve driving. FedEx Ground is adding a robotic sorting machine and an identification system that sorts small packages. UPS is planning to use automation to cut down on labor costs during the second year of its new agreement with Teamsters.

Our take: Both FedEx and UPS have incentives to cut operating costs to win over customers. However, you shouldn’t expect the carriers’ savings to kick back to the shipper. If your costs are too high, now is the time to renegotiate.

Read more on the increase of automation during peak season here.

Carriers announce holiday delivery cutoffs

The United States Postal Service, FedEx, and UPS have announced their deadlines for holiday deliveries. If consumers want to get their holiday gifts by Christmas Day, they will need to have them shipped as early as December 13.

FedEx Ground has the earliest deadline of the three carriers with the December 13 cutoff. Its same-day delivery option does have a later cutoff date of December 22. UPS has a December 15 cutoff for Ground services and a December 21 deadline for Air.

The United States Postal Service has the latest cutoff date for Ground shipments with a December 16 deadline. International shipments will depend on the destination.

Our take: Peak season is already here. It’s time to review your shipping operations to make sure you and your customers aren’t left behind this winter.

Read more on the holiday deadlines here.

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