ljwhitetailer
FNG
I have always been successful when using UPS. Hope it doesn't happen.
Hopefully not.I've been following this a little bit and wondering if it'll happen? Talked to our UPS guy and he said as far he knows they are walking August 1st.
Fedex doesn't have the capacity to pick up all that much of UPS' volume. The fedex pilots also just voted their TA down today, so they're not going to be helping fedex move anything extra.I can see this going one of two ways:
Scenario A - UPS and Teamsters come to an agreement at the last minute, no strike, both sides got some of what they wanted, minimal impact to UPS as a whole and UPS maintains thin margin as market leader.
Scenario B - Teamsters go on strike, massive logistics impact and delays, UPS customer sentiment decreases, FedEx gains larger share of market, , government steps in and forces drivers back to work, both sides come to an agreement, strike is resolved, UPS ultimately cuts jobs due to decreased package volume and FedEx becomes the market leader.
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Not sure what the US ratios are but here at my company 95% of our parcel is ground, so the 5% that the pilots touch is not that much of the overall volume. Believe it or don't our FedEx rep said they could handle 30% more of their normal volume and wouldn't be taking on any new (commercial) customers if they weren't currently using them before any potential strike. FedEx said current customers would be on allocation based upon volume from last week (7/17).Fedex doesn't have the capacity to pick up all that much of UPS' volume. The fedex pilots also just voted their TA down today, so they're not going to be helping fedex move anything extra.
Fedex moves a lot more by air than UPS does. They do a lot more overnight or 2nd day stuff.Not sure what the US ratios are but here at my company 95% of our parcel is ground, so the 5% that the pilots touch is not that much of the overall volume. Believe it or don't our FedEx rep said they could handle 30% more of their normal volume and wouldn't be taking on any new (commercial) customers if they weren't currently using them before any potential strike. FedEx said current customers would be on allocation based upon volume from last week (7/17).
"FedEx Partner -
“We are committed to protecting capacity and maintaining strong service levels for existing and actively shipping customers in the event of a market disruption due to the ongoing negotiations between UPS and the Teamsters Union. Over the last six months, we have been actively communicating with current and potential customers and urging them to transition business while capacity is available. Time is now running out. To ensure we protect our network, service levels, and committed customer capacity, we will accept additional volume for a limited time. We have unique approaches for different cohorts that can be found below. Should a work stoppage occur, volume above our baseline measurement for each cohort cannot be guaranteed for acceptance into the network.”
Please understand that FedEx will be taking a baseline snapshot of volume the week of July 17-21. Volume from the week of July 17-21 will be used as the baseline measurement for capacity. Should a work stoppage occur, volume above our baseline measurement cannot be guaranteed for acceptance into the network if not onboarded within the snapshot window."
I believe the slow-down by the union drivers has already started. Today is day #3 where my UPS package is supposedly on a truck to deliver, but it doesn't get delivered. No explanation, it just doesn't deliver and bumps to the next day.
The union wants to maximize the number of packages held up in the system during the strike.
That’s pretty much what we’re seeing here. My Teamster dues are 2.5x hourly rate per month. If a huge portion of teamsters get a significant raise, that means the union is getting a significant raise too!Greed goes both ways.........
not enough space on the delivery truck if the package was bulky, off shipped and the service you paid for is the lowest tier..Amazon does it as wellI believe the slow-down by the union drivers has already started. Today is day #3 where my UPS package is supposedly on a truck to deliver, but it doesn't get delivered. No explanation, it just doesn't deliver and bumps to the next day.
The union wants to maximize the number of packages held up in the system during the strike.