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FedEx to cut daytime domestic flight activity by 60%
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26

July

FedEx to cut daytime domestic flight activity by 60%

• FedEx plans to eliminate a significant number daily flights on September 29th 

• The number of U.S. cities served by daytime air will be reduced by 55%

• Roughly 500 pilots will be without a defined role at the Company

UPS announces deal to acquire Mexican delivery company Estafeta
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22

July

UPS announces deal to acquire Mexican delivery company Estafeta
  • Estafeta is one of Mexico's largest express delivery services
  • The Mexican shipping market has expanded significantly in recent years as a result of a continued shift towards nearshoring production
  • Estafeta has been in business for 45 years; the Company handles both freight and small packages
  • The transaction is expected to close by the end of 2024
  • The Postal Service’s $40 Billion Overhaul Is Off to a Rough Start
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    09

    June

    The Postal Service’s $40 Billion Overhaul Is Off to a Rough Start
  • The USPS' modernization efforts have led to significant delivery delays and lost packages; delivery times are 58% longer than they had been previously

  • Heightened USPS costs may be passed through to shippers in spite of its governmental status

  • The Postal Service will also be shifting its focus to shipping parcels over longer distances, not just the final-mile of deliveries

  • The USPS recently picked UPS to move its air cargo, replacing FedEx, which had provided the service for 20+ years
  • Royal Mail, Delivering Letters for 500 Years, to Be Sold to Czech Billionaire
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    29

    May

    Royal Mail, Delivering Letters for 500 Years, to Be Sold to Czech Billionaire
    • Royal Mail, the U.K.-based Company founded in 1516 when it was created by Henry VIII, has been acquired by EP Group
    • Royal Mail launched the Penny Black in 1840 - the world’s first adhesive postage stamp
    • The Company delivered 7 billion pieces of mail in 2022-23
    US parcel revenue sees first decline in 7 years, report finds
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    17

    April

    US parcel revenue sees first decline in 7 years, report finds
    • U.S. Parcel volumes increased YoY by 0.05% from 21.5 billion in 2022 to 21.7 billion in 2023
    • U.S. parcel revenue fell 0.03% from $198.4 billion in 2022 to $197.9 billion in 2023
    • Trend of increased volume with lower revenue highlights an increasingly competitive carrier landscape

    Peak season is multiplying: How can logistics respond?
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    09

    February

    Peak season is multiplying: How can logistics respond?
    • Carriers are transitioning from one-time seasonal surcharges to more complex pricing systems
    • Carrier-based solutions that allow businesses to have flexibility are highly advantageous
    • Regional carriers are gradually becoming a popular and convenient solution to volume and price volatility

    More parcel shippers likely to get caught in delivery surcharge net
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    27

    November

    More parcel shippers likely to get caught in delivery surcharge net
    • UPS and FedEx are shifting their surcharge zip codes to encompass larger cities
    • As a result, shippers will have to pay a per-package delivery area fee for more of their transactions
    • Changes will impact roughly 2.9 million shippers and receivers
    FedEx and UPS Publish GRI
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    16

    October

    FedEx and UPS Publish GRI
    • FedEx increased its minimum charge for next-business-morning deliveries (Priority Overnight) by 7.9%
    • UPS increased its minimum charge for its next-business-day service by 7.91%
    • All General Rate Increases (GRI) exclude increases in surcharges
    Consumers willing to pay premium for fast, precise peak deliveries
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    27

    September

    Consumers willing to pay premium for fast, precise peak deliveries
    • 50% of consumers are willing to pay a $9 per-package premium to receive next-day deliveries during peak-season
    • 39% of global merchants are planning to begin using shipping insurance this holiday as concerns of package theft rise
    • 49 million Americans have had at least one package stolen in the past 12 months
    The parcel Santa surcharge wars
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    22

    September

    The parcel Santa surcharge wars
    • Peak demand-based delivery surcharges are $7.40 per-package for FedEx Express, excluding all other accessorial fees
    • Roughly 1.75 million parcels per day will be subject to residential delivery surcharges
    • Fuel surcharges are likely to rise with increasing gas prices
    Retailers Set Higher Bars for Free Shipping as Delivery Costs Surge
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    10

    July

    Retailers Set Higher Bars for Free Shipping as Delivery Costs Surge
    • The cost of home delivery equates to 10% to 15% of an e-commerce brand’s sales
    • 62% of e-commerce shoppers won't purchase from a retailer without free-shipping
    • FedEx and UPS raised prices in 2023 by an average of 6.9%
    Growing Freight Fraud is Peeling Millions From the U.S. Shipping Market
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    26

    April

    Growing Freight Fraud is Peeling Millions From the U.S. Shipping Market
    • $500 million to $700 million of shippers’ and brokers’ freight payments are going to double brokers annually
    • In 4Q 2022, online freight marketplace Truckstop.com said complaints about fraud, including double-brokering, increased 400%
    • Freight fraud has impacted the flow of goods to warehouses and in turn delayed shipments to consumers