Unwavering Shipper Loyalty Remains Amidst Looming UPS Strike Threats
Despite the looming threat of a UPS strike, many companies have not shifted their package volumes to other carriers. The national contract between UPS and the International Brotherhood of Teamsters, representing around 330,000 UPS employees, is set to expire, and the union plans to strike on August 1 if a new contract isn't reached. However, some shippers have chosen to maintain their current volume levels with UPS due to a variety of factors. Larger-scale clients may be confident that a deal will be reached before a strike occurs and may be concerned about losing volume-based shipping discounts and the complexities of adjusting their carrier mix. Additionally, strict contract language and financial penalties for diverting volume to other carriers have deterred some shippers from making a switch.
On the other hand, some shippers, particularly small- and medium-sized businesses, have already taken steps to mitigate potential disruptions from a UPS strike. These companies have diversified their carrier mixes beyond UPS since the capacity constraints experienced during the COVID-19 pandemic. Many have secured capacity at alternative carriers and developed contingency plans to minimize the impact of a potential work stoppage. While some shippers are holding steady with UPS, others are actively implementing alternative carriers to safeguard their operations in the face of the impending strike threat.
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