This week in parcel, TransImpact releases the 2024 GRI analysis, UPS releases its third-quarter profits, and experts advise shippers to keep an eye out for upcoming policy issues ahead of the 2024 election.
TransImpact’s 2024 UPS GRI analysis is out now
UPS’s 2024 GRI is only 5.9%. Compared to last year, this is soft, but don’t let recency bias blind you. Shippers aren’t getting off easy.
The parcel experts at TransImpact have been working hard to bring you a full analysis of the UPS GRI, and now it’s ready.
There are four main stories you need to know, from surcharges to Ground service increases, but there’s much more to the rate increases.
UPS reports sharp drop in third-quarter profit
UPS has announced a significant decrease in third-quarter revenue. Compared to last year, the carrier saw a 12.8% decrease in overall revenue and a 56.9% decrease in consolidated operating profits.
“While unfavorable macro-economic conditions negatively impacted global demand in the quarter,” UPS CEO, Carol Tomé said, “our U.S. labor contract was fully ratified in early September and volume that diverted during our labor negotiations is starting to return to our network.”
The carrier has adjusted its 2023 targets to reflect the macro-economic conditions.
UPS is still working to win back the 1.2 million daily packages it lost during the negotiations with the Teamsters Union.
Our take: UPS is validating what we’ve been saying for a while. The labor situation cost UPS volume and the market is tough. The time is now to renegotiate your contracts and play UPS and FedEx off each other.
Read more here.
Parcel shippers should keep an eye on policy issues ahead of 2024 election
With an election year right around the corner, shippers should start taking stock of what federal policy changes could be next. International trade, transportation safety, and more could be affected next year.
There are currently bills in Congress looking to address the United States Postal Service’s ability to ship alcoholic beverages, supply chain congestion, and cybersecurity standards, among many other supply chain–related matters.
Federal agencies have historically rushed changes during a presidential election year. In the coming year, several regulatory proposals could affect operations and costs for parcel shippers.
Lastly, don’t overlook the Supreme Court. Shippers should keep tabs on whether the court will resolve a decision about the scope of federal motor carrier preemption statutes. This decision could affect any company using motor vehicles to ship packages.
Our take: There are always macro-economic conditions to take into account, including within the government.
Read more here.