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This week in parcel, the threat of a UPS strike officially ends. While the carrier looks to regain volume, it also gained a new competitor.

Meanwhile, TransImpact prepares shippers for what rate increases FedEx and UPS could have in store for 2024.

TransImpact predicts the 2024 GRIs

It’s almost time to start planning your 2024 parcel budget. For some, this could add stress to your operations. After all, shipping rates are one of the more unpredictable and volatile aspects of a company’s budget. This has been even more true in the last two years, with the general rate increases in parcel being historically high.

But the TransImpact team is at it again. Using historical pricing trends, cutting-edge data modeling software, and our market-leading expertise, we’re ready to reveal what FedEx and UPS customers should expect from the 2024 GRIs.

To get access to the free report, fill out the form here.

UPS and Teamsters deal official

While the tentative agreement was reached last month, UPS and Teamsters officially agreed to the new labor agreement on Tuesday, August 22. The ratification ends any chance of a strike.

Eighty-six percent of UPS employees represented by the union voted in favor of the new contract, which was the final step to make the national agreement official. All but one of the supplemental deals were ratified as well.

UPS now turns its attention to winning back the volume it lost during the negotiations, as many shippers moved to other carriers to avoid potential disruption to their supply chains.

Our take: With the UPS and Teamsters negotiations officially out of the way, now is a good time to focus on internal parcel operations and get ready for peak shipping season.

Read more here.

Amazon looks to compete with FedEx and UPS, relaunches shipping service

UPS and FedEx are gaining a competitor (again). Amazon has restarted its shipping service, Amazon Shipping, which allows sellers to use the company’s delivery services without storing inventory in Amazon’s warehouses.

Amazon initially tested this program in 2018 but put it on pause during the pandemic to keep up with demand on its own platform.

During Amazon Shipping’s hiatus, the company upped its logistics footprint and sped up shipping speeds. Half of Prime orders in the top 60 U.S. metro areas arrived within one day. The company also plans to expand its same-day delivery sites.

Our take: Amazon offering third-party delivery services is yet more competition for FedEx and UPS and an opportunity for companies to secure more favorable rates with their next contract.

Read more here.

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